MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, July 15, 2005 Canadian Fund Salesman Stole From Shareholders A Canadian fund salesperson has been accused of stealing more than C$1.6 million from investors. Regulators say that salesperson took the money over a six-year period by convincing shareholders to sell their fund stakes. He then took the funds instead of reinvesting them. Paul Robert Maudsley, a salesman working for Investors Group Inc., was accused of the crime by the British Columbia Securities Commission. The regulators charged both Maudsley and Shaylor Management Ltd. with fraud and violations of the Canadian Securities Act. Maudsley allegedly stole the funds from 23 investors after he liquidated their fund holdings and then failed to reinvest the proceeds. He used the assets to fund his personal expenses and "his cocaine and gambling habit and alcohol addiction," according to Canadian regulators. Investors Group has reimbursed C$2.3 million to the victims of the fraud. The firm fired Maudsley in March of 2003 after a compliance officer became aware of "off-book" transactions involving Maudsley in January of that year. He had worked in he firm's South Surrey Regional Office. "He simply took their money, or caused Shaylor to do so - about as stark an instance of deceit as there can be," said the panel. "The evidence provides clear and convincing proof that Maudsley had subjective knowledge of the deceit, and that it would result in the deprivation of others." Printed from: MFWire.com/story.asp?s=10084 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |