Incapacity advantages amounting to $36,000 have been the couple’s solely supply of revenue in the course of the interval lined by the CIRO investigation. Whereas their funding account threat tolerances have been acknowledged as 40-60% medium threat and 40-60% excessive threat, CIRO Enforcement workers believed this to be inconsistent with the couple’s monetary state of affairs and restricted/common data of funding.

The traders suffered losses of their accounts of 21% ($16,138) and 9% ($6,323) and have been absolutely compensated for these losses by Richardson.

Nevertheless, the investigation decided that Reyes’ actions have been “not intentional, willfully blind, or reckless. It was primarily negligent however was nonetheless severe.” There was no proof that Reyes had benefitted personally from his actions.

A listening to panel of the Funding Supplier Division of CIRO fined Reyes $22,641 – equal to the losses suffered by the traders – and he was ordered to pay disgorgement of commissions of $9,000, and prices of $5,000. He may also be topic to shut supervision for six months.  

Earlier disciplinary

This matter was not the primary of an analogous nature for which Reyes had confronted disciplinary motion by the regulator.