Former Abbotsford financial adviser banned for life

The Mutual Fund Dealers Association rules that former Abbotsford businessman Michael Harvey cannot conduct 'securities-related business.'

Michael Harvey

A former Mission resident who worked as a financial adviser in Abbotsford has been permanently banned from conducting “securities-related business” and ordered to pay a $75,000 fine and $10,000 in costs.

The ruling was made last Thursday against Michael Labrick Harvey by the Mutual Fund Dealers Association (MFDA) of Canada following a disciplinary hearing for which Harvey did not show up.

The three-person panel ruled that Harvey failed to co-operate with an investigation by the MFDA, despite repeated requests for an interview, starting in May 2010.

According to the MFDA “notice of hearing” from August 2011, 19 clients issued 12 complaints about Harvey’s conduct as a mutual fund salesperson.

He was employed in Abbotsford by the Investors Group Financial Services Inc. from 2005 to 2008 and Canaccord Capital Corporation from 2008 until he resigned in February 2010.

The complaints allege that Harvey made “unsuitable leveraging recommendations,” falsified client signatures and initials, and falsified information on account documents between December 2006 and September 2008.

Leveraging involves the borrowing of capital to increase the potential return of an investment.

The clients also allege that Harvey failed to inform them that mutual funds bought for their accounts had been purchased on a “deferred sales charge,” resulting in their incurring substantial fees when the investments were redeemed.

In one complaint detailed by the MFDA, a client alleged that some of the signatures and initials on documents in his file were not his, his listed income had been inflated, and his risk tolerance had been listed as “high” when it should have been “medium.”

In another case, a couple who had invested $300,000 in a leveraging plan lost $105,000, and alleged that Harvey had made unsuitable recommendations and had not explained the associated financial risks.

They also alleged that their signatures and/or initials had been falsified on 16 documents in their file, personal income had been inflated, and their risk tolerance was incorrectly recorded as “high.”

The complaints were first addressed by Investors Group, which found sufficient evidence to back the clients.

“As a result, Investors Group unwound the leverage loans and investments of those clients at its own expense, among other measures,” stated the MFDA documents.

The agency then began its own investigation and concluded that Harvey had falsified client signatures or initials on at least 67 documents and provided false information to ensure the proper requirements were meant and his recommendations were approved.

In a written response to MFDA in early 2009, Harvey denied any wrongdoing and stated the complaints were a “calculated and malicious attack on my professional reputation and a manipulation of my clients by Investors Group in response to my decision to move to Canaccord.”

During his time in Abbotsford and Mission, Harvey’s community involvement included the Rotary Club of Mission, the United Way of the Fraser Valley and the Mission Regional Chamber of Commerce.

He is now believed to be residing in White Rock.

Just Posted

PHOTOS: Mission’s Candlelight Parade

More than 80 floats took part in the annual holiday event in downtown Mission

First snowfall of season on its way in the Fraser Valley: Environment Canada

Two to four centimetres of snowfall is expected to fall by Sunday evening

Girl’s ‘brilliant’ drawing of B&E suspect hailed by Abbotsford police

Man seen trying to break into cars in the McMillan area of Abbotsford on Friday

More waste still needs to be diverted from Mission landfill

Diversion rate currently at 66 per cent, but 80 per cent by 2020 is the goal

It’s the last day to vote in B.C.’s referendum on electoral reform

Ballots must now be dropped off in person to meet the deadline of 4:30 p.m.

VIDEO: Highway overpass protest against United Nations ‘compact’ on immigration

Demonstrators say Canada will have less control over who is allowed in the country

Boeser scores 3, Pettersson has 5 points as Canucks hammer Blues

Vancouver picks up impressive 6-1 win in St. Louis

B.C. police stop drunk driver who offered up burger instead of ID

Roadblock checks over the weekend found at least two other impaired drivers

In Canada, the term ‘nationalism’ doesn’t seem to have a bad rap. Here’s why

Data suggest that Canadians don’t see the concept of nationalism the way people do in the United States

Small quake recorded west of Vancouver Island

No injuries or tsunami warning after 5.4 rumble felt some 400 kilometres from Victoria

B.C. suspends Chinese portion of Asian forestry trade mission due to Huawei arrest

Huawei’s chief financial officer Meng Wanzhou was detained at the request of U.S. in Vancouver

Canadians spent $1.7 billion dollars online in December 2017

Online retail sales accounted for 3.4 per cent of total retail sales

2-year investigations nets $900,000 in refunds for payday loan customers

Consumer Protection BC says selling practices were ‘aggressive and deceptive’

China: Canada’s detention of Huawei exec ‘vile in nature’

Huawei is the biggest global supplier of network gear for phone and internet company

Most Read