Financial advisor in Mississauga banned for life after clients lost over $1.3M

A mutual funds advisor who worked in the Mississauga area is banned for life in the industry.

Leszek Dziadecki worked with Global Maxfin Investments Inc. and was owner and president of Advantage Group of Finance Inc. from 2004 to 2018 in the Mississauga area, according to hearing documents from the Canadian Investment Regulatory Organization.

A hearing panel for the regulatory body found Dziadecki guilty of misconduct earlier this year and the Capital Markets Tribunal confirmed that decision on Oct. 23.

His clients suffered losses in excess of $1.3 million, the Canadian Investment Regulatory Organization reasons for decision document stated.

The regulatory organization said Dziadecki “preyed” on investors who put their trust in him as they were part same Polish speaking community. He was also a branch manager, which instilled trust in him as a competent and reliable financial advisor.

In 2015, Dziadecki repeatedly encouraged clients to invest in a company called BioNorth SMI, repeatedly assuring them the investment was “guaranteed and essentially no risk.”

BioNorth SMI was not approved to sell under Global Maxfin Investments Inc.

One client took out two mortgages on a home to invest. Another used her savings in her TFSA account to invest in the BioNorth SMI.

The investment wasn’t safe, and clients lost a total of $1,378,200. The losses were “devastating, psychologically and financially,” the reasons for the decision state. One person had to delay retirement to repay the mortgage, and another had to sell her home. One client described herself as “destroyed.”

The hearing panel found Dziadecki engaged in the misconduct in anticipation of future commissions.

This wasn’t the first time Dziadecki was involved in a misconduct case. In 2006, he was found guilty of the same misconduct after selling $200,000 of debentures, unapproved by his firm, for a business operated by Edward Tsang. Investors suffered no losses in this case.

Tsang also approached Dziadecki about BioNorth SMI.

Dziadecki denied any misconduct and applied to the Capital Markets Tribunal.

The Capital Markets Tribunal confirmed the earlier decisions and dismissed Dziadecki’s application on Oct. 23.

Dziadecki is permanently prohibited from conducting securities-related business in any capacity and was fined $300,000.

For more information, see the documents here.

Lead photo: KATRIN BOLOVTSOVA