MFDA Hearing Panel issues Reasons for Decision (Misconduct) in the matter of Duke Ongechi

  a)

between about 2014 and 2015, the Respondent referred or assisted at least five clients to
invest in or loan monies to a retail clothing business, thereby engaging in an undisclosed
and unapproved outside activity, contrary to MFDA Rules 1.2.1(c) (now Rule 1.3) and
2.1.1

  b)

in or about September 2015, the Respondent signed a promissory note in which he agreed
to pay $19,755 to a client pertaining to the client's investment in or loan to a retail clothing
company, and provided personal cheques to the client to pay the amounts owed pursuant
to the terms of the promissory note, thereby:

i

engaging in personal financial dealings with a client which created a conflict or
potential conflict of interest that the Respondent failed to address by the exercise of
responsible business judgment influenced only by the best interests of the client,
contrary to MFDA Rules 2.1.4 and 2.1.1; and

ii

entering into a settlement agreement with a client without the Member's knowledge
or prior written consent, contrary to MFDA Rules 2.1.4 and 2.1.1, and MFDA Policy
No. 3

c)

between December 2015 and March 2016, the Respondent failed to report to the Member,
within two business days or at all, that the Respondent had been named as a defendant in
one civil claim commenced by clients, and that there was a garnishment order rendered
against the Respondent pursuant to a civil claim commenced by a client, contrary to MFDA
Rules 1.4(b) and 2.1.1, and section 4 of MFDA Policy No. 6

d)

commencing in October 2016, the Respondent provided false or misleading statements to:

i

the Member during the course of its investigation into his conduct, thereby interfering
with the Member's ability to supervise and investigate the Respondent's conduct,
contrary to MFDA Rule 2.1.1; and

ii

MFDA Staff during the course of its investigation into the Respondent's conduct,
thereby interfering with MFDA Staff's ability to conduct its investigation, contrary
to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1