Notice of Application
File No. 201432
IN THE MATTER OF AN APPLICATION
PURSUANT TO SECTION 24.3 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA
Re: Gilles Robert Latour
NOTICE OF APPLICATION
(Section 24.3 of By-Law No. 1)
NOTICE is hereby given that an application pursuant to section 24.3 of By-Law No. 1 of the
Mutual Fund Dealers Association of Canada (the “MFDA”) will be brought by Staff of the
MFDA (“Staff”), with notice to Gilles Robert Latour (the “Respondent”), before a hearing panel
of the MFDA’s Central Regional Council (the “Hearing Panel”) as an oral hearing in the hearing
room located at 121 King Street West, Suite 1000, Toronto, Ontario on October 24, 2014, at
12:00 p.m., or as soon thereafter as the application can be heard.
DATED this 22nd day of October, 2014.
“Paige L. Ward”
Paige L. Ward
Corporate Secretary
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, Ontario, M5H 3T9
Tel.: 416-943-5838
Fax: 416-361-9781
Email: [email protected]
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THE APPLICATION IS FOR AN ORDER:
1.
Suspending Latour immediately from engaging in securities related business1 in any
capacity as an Approved Person, until further order of a Hearing Panel, pursuant to s. 24.3.3(a)
of MFDA By-law No. 1; and
2.
For such further and other relief as counsel may advise and the Hearing Panel permit.
THE GROUNDS FOR THE APPLICATION ARE:
1.
Since April 2007, Latour has been registered as a dealing representative (formerly known
as a mutual fund salesperson) with Equity Associates Inc. (“Equity”), a Member of the MFDA.
2.
Prior to Equity, Latour was registered as a mutual fund salesperson with FundEX
Investments Inc., also a Member of the MFDA.
3.
Latour currently operates under the approved business name Latour Financial Group Inc.
4.
At all material times, Latour has carried on business for Equity from a sub-branch located
at 42 Second Street East, Cornwall, Ontario.
5.
On August 19, 2014, Latour was charged with offences under the Criminal Code
accusing him of fraud, obtaining by false pretence, theft by conversion, and breach of trust in
relation to his dealings with two individuals, one of whom is a client of Equity whose accounts
are serviced by Latour.
6.
In total, Latour was charged with six counts, as follows:
1
MFDA By-law No. 1 defines “securities related business” as follows: "securities related business" means any
business or activity (whether or not carried on for gain) engaged in, directly or indirectly, which constitutes trading
or advising in securities for the purposes of applicable securities legislation in any jurisdiction in Canada, including
for greater certainty, securities sold pursuant to exemptions under applicable securities legislation.
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7.
(i)
defrauding Non-client #1 of the sum of $165,000;
(ii)
defrauding Client #1 of the sum of $36,000;
(iii)
obtaining from Client #1 an investment by false pretenses over $5,000;
(iv)
theft of the sum of $36,000 belonging to Client #1;
(v)
theft of the sum of $165,000 belonging to Non-client #1; and
(vi)
breach of trust in regard to Non-client #1.
Latour has been released from custody. His next court appearance is scheduled for
October 28, 2014.
8.
The charges against Latour are likely to bring the capital markets into disrepute.
9.
Latour currently remains registered with Equity. Effective September 29, 2014, the
Ontario Securities Commission (OSC) imposed terms and conditions on Latour’s registration
requiring Equity to place Latour under strict supervision and to provide monthly supervision
reports in a specified form to the OSC and the MFDA detailing Latour’s sales activities and
dealings with clients.
10.
The terms and conditions imposed on Latour’s registration by the OSC address his sales
activities and dealings with clients conducted on behalf of, and through the accounts and
facilities of, Equity. The terms and conditions may not be able to address activities engaged in
by Latour with clients and other individuals outside of Equity, without the knowledge or
approval of Equity.
11.
The activities that gave rise to the criminal charges against Latour pertain to activities
engaged in by Latour with clients and other individuals outside of Equity.
12.
As part of its ongoing investigation, Staff has, to date, already obtained information and
documents from two additional clients (i.e. in addition to Client #1 referred to in the criminal
charges) who allege that Latour borrowed in total $615,946 from them which he has failed to
repay fully or at all:
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13.
Client
Client #2
Date of promissory note
August 11, 2008
October 25, 2009
June 28, 2011
December 4, 2012
April 4, 2014
Client #3
February 16, 2011
March 6, 2012
Loan Amount
$150,000
$18,000
$100,000
$150,000
$97,946
$ 515,946
$70,000
$30,000
$100,000
Total $615,946
In total, the Clients #1, 2, and 3 allege that Latour borrowed in total $651,946 from them
which he has failed to repay fully or at all.
14.
There is a reasonable possibility that Latour’s indebtedness to these known individuals
and to any other unknown individuals may lead him to obtain additional monies from clients and
other individuals in order to repay all or part of his existing indebtedness, or to finance the
activities that gave rise to his need to borrow monies in the first place.
15.
If Latour continues to engage in the same or similar activity with clients and other
individuals, it would be likely to result in financial loss and imminent harm to those clients and
individuals.
16.
In the circumstances of this case, the length of time required for Staff to investigate the
full nature and extent of Latour’s activities, and to thereafter arrange and conduct a hearing
pursuant to section 20 and 24.1 of MFDA By-law No. 1, would be prejudicial to the public
interest.
17.
Sections 24.3.1 and 24.3.3 of MFDA By-law No. 1 and Rule 24 of the MFDA Rules of
Procedure.
THE FOLLOWING evidence will be relied upon at the hearing of the application:
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1.
the affidavit of Lara Rowles, and the exhibits attached thereto, to be filed; and
2.
such further and other evidence as Staff may submit and the Hearing Panel may permit.
DATED this 21st day of October, 2014.
David Halasz
Senior Enforcement Counsel
Mutual Fund Dealers Association of
Canada
Tel: 416-945-5148
Email: [email protected]
STAFF OF THE MFDA
121 King Street West, Suite 1000
Toronto, ON M5H 3T9
Fax: 416-361-9073
TO:
Gilles Robert Latour
42 Second Street East
Cornwall, ON
K6H 1Y3
DM 398892 v2
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