The MFDA has slapped a whopping $1.7 million fine on a former fund rep, who “vanished” when his conduct was exposed.
Chanrith Yin, who used to work for Equity Associates Inc. in London, Ontario, was also banned for life by the regulator, which described his conduct as “egregious”. Yin was found to have misappropriated client money, engaged in unapproved outside business and personal financial dealings with clients, and failed to cooperate with the MFDA investigation.
It was alleged that Yin solicited funds from about 11 clients to invest in his own private mortgage lender, Nobis Group Property Management and Leasing, which he had launched without Equity’s knowledge. Yin promised returns and touted Nobis to clients as a safe investment.
The returns failed to materialize, however, and clients complained to Equity. While Yin did not cooperate in the investigation, the hearing panel said there was overwhelming evidence of the violations.
An MFDA statement read: “He took substantial sums from a number of ordinary, hard-working persons, who trusted him to invest their funds wisely and prudently.”
It added: “The MFDA alleges that a total of 11 individuals invested their funds with the respondent. The respondent did this on his own, without the knowledge of [Equity]. When his conduct was discovered, he vanished and the MFDA has been unable to locate his whereabouts.”
While about $300,000 was paid out to victims of the scheme, almost $1.4 million remains unaccounted for. Yin must also pay $30,000 in costs.