The Mission Record Thursday, January 12, 2012 3
Fine levied against former financial adviser BY VIKKI HOPES Black Press
A former Mission resident who worked as a financial adviser in Abbotsford has been permanently banned from conducting “securitiesrelated business” and ordered to pay a $75,000 fine and $10,000 in costs. The ruling was made last Thursday against Michael Labrick Harvey by the Mutual Fund Dealers Association (MFDA) of Canada following a disciplinary hearing for which Harvey did not show up. The three-person panel ruled that Harvey failed to co-operate with an investigation by the MFDA, despite repeated requests for an interview, starting in May 2010. According to the MFDA “notice of hearing” from August 2011, 19
cclients issued 12 compplaints about Harvey’s cconduct as a mutual ffund salesperson. He was employed iin Abbotsford by the IInvestors Group FiHarvey nancial Services Inc. from 2005 to 2008 and Canaccord Capital Corporation from 2008 until he resigned in February 2010. The complaints allege that Harvey made “unsuitable leveraging recommendations,” falsified client signatures and initials, and falsified information on account documents between December 2006 and September 2008. Leveraging involves the borrowing of capital to increase the potential return of an investment.
The clients also allege that Harvey failed to inform them that mutual funds bought for their accounts had been purchased on a “deferred sales charge,” resulting in their incurring substantial fees when the investments were redeemed. In one complaint detailed by the MFDA, a client alleged that some of the signatures and initials on documents in his file were not his, his listed income had been inflated, and his risk tolerance had been listed as “high” when it should have been “medium.” In another case, a couple who had invested $300,000 in a leveraging plan lost $105,000, and alleged that Harvey had made unsuitable recommendations and had not explained the associated financial risks. They also alleged that their signa-
tures and/or initials had been falsified on 16 documents in their file, personal income had been inflated, and their risk tolerance was incorrectly recorded as “high.” The complaints were first addressed by Investors Group, which found sufficient evidence to back the clients. “As a result, Investors Group unwound the leverage loans and investments of those clients at its own expense, among other measures,” stated the MFDA documents. The agency then began its own investigation and concluded that Harvey had falsified client signatures or initials on at least 67 documents and provided false information to ensure the proper requirements were meant and his recommendations were approved. In a written response to MFDA
in early 2009, Harvey denied any wrongdoing and stated the complaints were a “calculated and malicious attack on my professional reputation and a manipulation of my clients by Investors Group in response to my decision to move to Canaccord.” Harvey had no further contact with the MFDA, whose letters sent to him were returned “unclaimed.” During his time in Abbotsford and Mission, Harvey’s community involvement included the Rotary Club of Mission, the United Way of the Fraser Valley and the Mission Regional Chamber of Commerce. He also wrote a financial advice column for a community newspaper. He is now believed to be residing in White Rock. Contact information for him could not be found.
Mission’s finances to be examined by task force Core review expected to take six months to complete BY ADRIAN MACNAIR Mission Record
Howard Meakin is proposing to construct a concrete pier around the barge, used in Expo 86 as a McDonalds. RECORD FILE IMAGE
Decisions made by council: Nundal From PROJECT Page 1
either acquire or come to an agreement with the present landowner for the 0.67 hectares at the former Meeker Cedar Mill site. The whole project had become a chicken-egg paradox, since Meakin was reportedly reluctant to acquire the land
without approval of the project, while the district would not approve the project without a land use plan for parking. During question period former councillor Mike Scudder, who presided over the first application for McBarge, asked whether staff in the planning department have since changed
their opinion that the project was considered incomplete. But Chief Administrative Officer Glen Robertson was quick to say it wouldn’t be fair to ask staff to provide an opinion. “One of the things we promised very loudly is that [McBarge] would go to public hearing,” said Adlem.
Coun. Larry Nundal added that staff are paid to make recommendations, but ultimately decisions are made by the council. “The bottom line is we made a decision. There will be a public hearing,” he said. McBarge is currently moored east of the Ironworkers Memorial Bridge in Burrard Inlet.
Second annual Back to Health fair Saturday at Mission Leisure Centre Learn about the numerous health-related services in the District of Mission Jan. 14. The municipality has partnered with Fraser Health Authority again this year to put on the second annual Back to Health ... For Good event next Saturday.
Take in a flu clinic, get free body fat analysis and flexibility testing, get free access to skating (1-2:30 p.m.), fitness classes and the weight room, and the Kids Zone will be in place. “We are hoping for an even bigger
turnout than last year. It’s a great way for people to learn how easy it is to get active and stay healthy,” said Stephanie Key, deputy director of parks, recreation and culture. For more information call 604-8203700 or visit www.mission.ca.
A core services review task force aimed at finding savings of up to 10 per cent of departmental expenditures for the municipality moved forward Monday evening as council finalized its terms of reference. The core services review was part of the new council’s electoral platform, and will be overseen by Mayor Ted Adlem and Couns. Jeff Jewell, Nelson Tilbury, and Larry Nundal. Although a politically neutral background and objectives was provided for the terms of reference, Jewell moved that it be amended to explain more explicitly the reasons for the review. “All of the newly elected Council ran as members of the Citizens for Responsible Municipal Government (CRMG), pledging to hold the line on spending and taxes, and promising to conduct a Core Services Review as a guide to achieving tax relief and financial sustainability,” reads an excerpt. This initially raised an objection from Coun. Jenny Stevens, who said it was an unnecessary political statement. “I don’t think we have to reiterate what we’ve been saying in this setting,” she said. But Coun. Dave Hensman disagreed, saying, “People have a tendency to forget things and it’s good to remind folks why we’re doing this.” Despite Stevens’ comments, the motion to amend the text to include CRMG in the terms of reference was approved unanimously. The core services review is expected to take six months to complete. Finance director Ken Bjorgaard said in a telephone interview that no estimate on the cost of a core services review is yet available, but more information will be provided at the Jan. 23 regular council meeting. Similar undertakings in other communities have cost more than $70,000.