Securities regulators have slapped and Ontario man and a mutual fund company he controlled with fines and other penalties totalling some $3.4 million.
Roy Brown, also know as Roy Brown-Rodrigues and the Juniper Fund Management Corp. were found by a hearing of the Ontario Securities Commission to have engaged in improper activities that "caused significant losses" to unitholders of its funds, according to a statement issued by the commission on Friday.
Among other things, the OSC found that JFM acted as a mutual fund dealer without being registered, failed to maintain proper records and failed to provide full and true disclosure about its investment funds.
The Juniper Equity Growth Fund was found to have provided prohibited loans, including more than $1.2 million that Brown borrowed and applied against the mortgage on his home, and held prohibited investments contrary to law.
Brown, as an officer and director of JFM, was found to have "authorized, permitted and acquiesced" in the various breaches.
Among the sanctions, Brown has been permanently from trading in securities and from becoming or acting as a director or officer of any issuer.
Meanwhile, Brown and JFM have ordered to pay on a joint and several basis an administrative penalty of $500,000, investigative costs of more than $583,000 and to disgorge to the OSC more than $2.3 million "obtained as a result of his non-compliance with Ontario securities law."
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.