A Salmon Arm man has agreed to pay $50,000 to the British Columbia Securities Commission in connection with unregistered investment activities.
The commission said the Salmon Arm man traded in securities and acted as an adviser without being registered.
“Between 2014 and 2017, Jeffrey Dean Mushaluk solicited and referred 96 investors to investment funds managed by Crystal Wealth Management System Limited. The corporation – which was registered in British Columbia as an exempt market dealer and portfolio manager, and in Ontario as an investment fund manager – collapsed in April 2017.
“Mushaluk collected ‘Know Your Client’ information for the investors, completed paperwork for them and acted as their primary point of contact. He also participated in two seminars in which he gave potential investors information about Crystal Wealth and its investments funds.
“In addition, he held himself out as an investment advisor for several months. He made investment recommendations or gave portfolio allocations instructions for 61 of the investors. He also made recommendations for buying and selling securities in two of the Crystal Wealth funds.”
As part of the settlement, stated the news release, Mushaluk agreed to pay $50,000 to the commission, and is prohibited for 12 years from: trading or purchasing any securities or derivatives, except in accounts in his own name; becoming or acting as a registrant or promoter; advising or otherwise acting in a management or consultative capacity in connection with activities in the securities or derivatives markets; and engaging in promotional activities.
Mushaluk was previously registered for several months in 2014 to trade mutual funds with another firm. The settlement agreement with the commission stated that Mushaluk’s registration in 2014 did not permit him to trade and advise in Crystal Wealth securities because a registrant can trade and advise only on behalf of the firm he is registered with.
In addition, the news release stated,in 2016 he was disciplined by the Mutual Funds Dealers Association, a self-regulatory organization, because he acted outside his mutual funds registration.
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