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by Mike Caswell

The Canadian Investment Regulatory Organization has permanently banned former Investors Group Financial Services Inc. employee Mohammed Dakik after he put clients into an unapproved outside investment. The clients lost money after the company in which they invested was dissolved, CIRO says. Among the clients listed by CIRO was a 68-year-old retiree who had put $50,000 into that company.

The ban for Mr. Dakik is contained in a decision that CIRO released on Thursday, Sept. 18. The ban comes as part of a negotiated settlement, in which Mr. Dakik has admitted to violating a rule that bars employees from carrying out securities-related business outside of their employer. In addition to the permanent ban, Mr. Dakik has agreed to pay $25,000.

The case stems from investments in a cannabis company called CBD Export Global. In 2019, Mr. Dakik personally invested in the company and he then began recommending that clients buy shares as well, CIRO says. The clients that he solicited included a 68-year-old man who invested $50,000. Other clients invested smaller amounts, ranging from $1,000 to $6,000, the decision states. On top of that, Mr. Dakik unsuccessfully solicited another client to lend at least $100,000 to CBD Export, CIRO claims.

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