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by Mike Caswell

The Canadian Investment Regulatory Organization has, for the second time in five years, fined Richardson Wealth Ltd.'s John Manuel Reyes for placing clients into unsuitable investments. CIRO claims that Mr. Reyes placed two vulnerable clients into high-risk energy and cannabis stocks. Richardson Wealth later paid out the clients for losses that they suffered.

The sanctions are contained in a settlement agreement that CIRO released on Wednesday, Aug. 2. Mr. Reyes has agreed to pay $36,461, with the amount including a $22,461 fine, disgorgement of $9,000 in commissions and $5,000 in CIRO's costs. Mr. Reyes has admitted to the violations, at least for the purposes of settling the matter.

The case arose from investments that Mr. Reyes recommended to a married couple from Calgary. The husband was receiving disability benefits after having a stroke in 2008, while the wife had been unable to work since 2011 and was also receiving disability benefits. Neither had any other source of income, the settlement states.

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