A Canadian mutual fund salesperson was banned for life from the securities industry and fined $250,000 for defrauding clients. The British Columbia Securities Commission imposed the maximum penalties against Paul Robert Maudsley, a former sales person for Shaylor Management on Wednesday.
Maudsley must also pay $60,000 to cover the costs of the hearing.
The commission found that Maudsley had defrauded 23 clients by convincing them to redeem nearly C$1.6-million in fund shares and then failing to reinvest the funds in other securities as promised. Instead, Maudsley used the funds on personal expenses, including cocaine and gambling.
"He simply took their money, or caused Shaylor to do so -- about as stark an instance of deceit as there can be," the panel said.
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