Former White Rock business woman Penny Deming has been fined $20

‘Rogue broker’ fined, banned from practise

Former White Rock business woman Penny Deming says mutual-fund penalty was result of ‘a business mistake.’

A former White Rock businesswoman who admitted to misconduct in connection with two “off-book” sales of shares in her company has been fined $20,000 and banned from securities-related business for 4½ years.

According to a decision announced last month by the Mutual Fund Dealers Association of Canada, the sanctions on Penny Deming will enhance investor protection and strengthen public confidence in the industry.

“The respondent exposed two investors to actual risks of loss… Further, the funds went to the respondent personally, and to a company she controlled,” the decision states.

Deming, however, said the issue boils down to “a business mistake.”

“I think the whole thing has been blown out of proportion… so skewed,” she told Peace Arch News last week from Mexico. “MFDA was clear that there’s no fraud, no misrepresentations.

It’s because I didn’t hold the right licence. They got me on a technicality.”

The MFDA regulates the operations, standards of practice and business conduct of Canadian mutual-fund dealers.

Disciplinary proceedings against Deming, 51, were announced last December.

Deming initially denied any wrongdoing.

In an agreed statement of facts that was presented during a hearing last June, however, Deming admitted to engaging in securities-related business contrary to association rules and standard of conduct by selling shares in her company, SHE Financial Group Ltd., while working as a mutual-fund advisor for Worldsource Financial Management Inc.

Aimie Wallace & Marcie MunroThe shares – worth a total $100,000 and which the disciplinary panel heard were not approved by WFM for sale – were sold to women identified as A.W. and M.M.

Deming said the two women were her business partners.

Deming did not attend the hearing – although she was in White Rock at the time, she said – but was represented by lawyer Simon Kent.

The three-member panel also heard that Deming “did not intentionally contravene the rules of MFDA.”

However, “… we have no doubt that she was aware of the regulatory and dealer imposed obligations regarding off-book business,” the decision states.

The document notes Deming co-operated with the investigation, with the exception of providing financial records for SHE.

She told PAN last week that the information was withheld on the advice of her lawyer, and that “it wasn’t going to change anything.” She said the $100,000 in question “went into the business.”

“There’s nothing underhanded. It was spent on office rental, staff, promotion of the business,” she said.

And while the panel heard that Deming agreed the imposed penalty – which exceeds that recommended in MFDA guidelines – would be appropriate for her behaviour, the document notes she now claims she is “impecunious and unable to pay any amount towards either a fine or costs.”

Deming, who declared personal bankruptcy in May 2012, told PAN she wouldn’t pay even if she could.

“I’m not going to pay money like that for something I never did,” she said, adding she agreed to the penalty for health reasons.

“I just wanted it to go away. My lawyer did not advise me on that. Because of my circumstances, I couldn’t fight the battle.”

Deming also said that WFM knew about the two women investors, and that her downfall was not being able to locate anything in writing to prove it.

At the June disciplinary hearing, panel chair Stephen Gill described Deming as “a rogue broker.”

Deming’s penalty includes an order to pay $2,500 in costs.

Marcie Munro, who told PAN she is victim M.M., said last week she is grateful to the MFDA for ensuring that Deming’s culpability is in the public domain.

“Word of mouth will get around,” she said.

Recovering from the financial hit is another matter.

“It’s a very difficult lesson learned,” she said, adding efforts to recover the funds are ongoing.



Just Posted

Lost a ring? This White Rock man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

PHOTOS: Family Day celebrated at Historic Stewart Farm

Youngsters participate in some old fashioned fun

Clayton’s little neighbourhood libraries are open for business

’Take a book, leave a book’ initiative aims to bring Clayton residents closer together

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

VIDEO: Winterhawks end Giants winning streak at seven

Playing on home ice, Vancouver’s G-Men fell 5-3 during a Family Day game against Portland.

Aaron Pritchett and George Canyon to headline Gone Country concert in Cloverdale this summer

‘Early bird tickets on sale via Twins Cancer Fundraising website

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

UPDATE: Plane flips over at Pitt Meadows airport

The pilot and lone occupant exited the aircraft on his own and uninjured.

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

Most Read

l -->