The Globe and Mail reports in its Saturday, May 17, edition that the Canadian Investment Regulatory Organization (CIRO) has reached a settlement with Canaccord Genuity regarding violations of gatekeeper rules. The Globe's Jameson Berkow writes that as part of the agreement, Canaccord will pay over $2.8-million in penalties. According to the terms approved by a CIRO hearing panel, Canaccord will return $2.2-million that it earned from its trading activities. Additionally, the firm has agreed to pay a $600,000 fine and $50,000 in costs. The case involves Canaccord executing trades for Stuart Jeffery and his firm, Crito Capital LLP, from 2021 to 2023. During this period, Canaccord earned nearly $4.8-million (U.S.) in commissions from Crito accounts, which were among the top revenue-generating accounts for the firm. CIRO stated that Canaccord was obligated to act as a gatekeeper to prevent fraudulent practices but failed to do so in opening the Crito accounts. In November, 2022, Canaccord learned that the U.S. Securities and Exchange Commission accused Mr. Jeffery of selling about $1.2-billion (U.S.) in penny stocks without being registered. Despite this, CIRO stated that Canaccord continued trading for Crito.