News Release
Commission settles with mutual fund salesman who defrauded client
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Date:
2001-11-08 -
Number:
2001/55
Released: 11/01/01 Contact: Andrew Poon
NR 01-55 604-899-6880 or
(BC & Alberta) 1-800-373-6393
Vancouver -- A Kelowna-based mutual fund salesman has agreed to a five-year ban from the securities market after admitting to the BC Securities Commission that he defrauded a client of $7,521.
In the settlement reached with the commission, Kevin Sean Killough of PFSL Investments Canada Ltd., also agreed he would not act as a director or officer of any issuer or engage in investor relations for five years.
Killough has also agreed to refrain from applying for registration to sell securities in BC for 10 years.
Killough admitted that on three separate occasions, between November 2000 and January 2001, he changed the address on his client's account records to his own. He then redeemed the securities held in that client's accounts and sent the proceeds totalling $7,521 to his own residence.
The BCSC discovered this through a review of Killough's termination report sent to the commission by PFSL Investments. Killough's client has been repaid the entire sum lost.
By redeeming his client's funds and taking the money for his own use, Killough admitted that he defrauded his client in violation of the Securities Act.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. A copy of the Agreed Statement of Facts is available on the commission’s website www.bcsc.bc.ca or by contacting Media Relations Officer Andrew Poon at 604-899-6880.