Kenneth Rijock

Kenneth Rijock

Friday, January 13, 2017

LEON FRAZER MANAGING DIRECTOR REPEATEDLY BREACHED HIS FIDUCIARY DUTY TO CLIENT



Documents recently examined, during the continuing investigation into misconduct at Leon Frazer & Associates, Inc., verify that Lyle Stein, the former Managing Director, and Chief Compliance Officer of Leon Frazer & Associates, Inc., committed several acts which amount to a breach of his fiduciary responsibilities, if not qualifying as felonies, under Canadian law. Stein, who was subsequently cashiered, and quietly fined $500,000, by the OSC, is currently employed at another firm.

Some of the tortious acts the documents show Stein engaged in with a client:

(1) Making a client's personal (and highly confidential) information available to a known financial criminal, located in the Republic of Panama, without the client's knowledge and consent. That financial criminal, who has several convictions, and million dollar judgments, in force against him, obtained details of corporate ownership from Stein.

(2) Told the client, falsely, that his corporate accounts at TD Bank (Toronto Dominion Bank) were frozen, when this was totally untrue, and, with the help and assistance of Leon Frazer Chairman of the Board, but completely without client consent and authorization, transferred his accounts, out of Leon Frazer, and to Northland Wealth Management, Inc. Stein accomplished this illegal act, with the aid of Leon Frazer Chairman William Tynkaluk, who was the client's wealth manager at LF.

Apparently, the client started asking questions about the management of his $11m+ accounts there, and Tynkaluk & Stein decided to move his accounts to Northland Wealth Management. Stein alleged that he had received a letter, from TD Bank, stating that the client's account had been frozen, but when a demand was made to produce the letter, he refused, raising the presumption that it did not exist, and that Stein and Tynkaluk could not account for all the client's funds entrusted to Leon Frazer, and wanted to make the client a former client, so that they could decline to release information, based upon some bogus internal Leon Frazer rule.

As you can see, Lyle Stein, who in essence ran the day-to-day operations of Leon Frazer, repeatedly lied to the client, made misrepresentations of material fact, and conducted unauthorized transfers of client accounts. In doing so, he was the disclosed agent of LF, and his acts and deeds are legally those of the company, which is strictly liable for his sins and transgressions.

As the discovery phase progresses, we shall be reporting further on the Canadian litigation* surrounding the Cayman Gang of Four scandal, in which Canadian pensioners are estimated to have lost $450m to the Cayman Islands-based financial professionals, Sharon Lexa Lamb, Derek Buntain, Ryan Bateman, and William Tynkaluk, of Leon Frazer, who was instrumental in the theft of hundreds of millions of dollars in client assets.
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* Willaud Corporation, et al vs. Leon Frazer & Associates, Inc., Superior Court of Ontario.
  Willaud Corporation, et al  vs. Northland Wealth Management, Inc., Superior Court of Ontario.

     

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