Mutual fund leveraging class action certified
In a decision released in February, Ontario Superior Court Justice J. B. Shaughnessy certified a class action against mutual fund dealer Investia Financial Services Incorporated, its franchisee, Money Concepts (Barrie), and two of its former registered salespersons, David Karas and James Stephenson, relating to allegedly improper leveraging strategies that were used in the purchase of mutual funds. In particular, it is alleged that the defendants allowed leveraging (i.e. borrowing to invest) pursuant to a scheme that was applied systematically to their clients and that this leveraging scheme breached industry standards and regulations and caused serious harm to their clients. There ... [more]
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