The Toronto-based Investment Industry Regulatory Organization of Canada (IIROC) has fined John MacEachern, a registered representative in Prince Edward Island, $25,000 for recommending and soliciting investments without the consent of his firm.

According to IIROC documents, between July 2010 and June 2011, MacEachern recommended Capital Market Technologies Inc. (CMT) to clients without the knowledge of RBC Dominion Securities Inc. (RBC DS), his employer at the time. In total, 17 investors purchased CMT securities for a total investment of $178,000. None of the investments were made through RBC DS.

MacEachern first became aware of CMT through a former acquaintance, a representative of the company. In 2010, CMT was seeking a listing on a recognized exchanged, says IIROC, and the company’s representative asked MacEachern to act as the “Broker of Record” once the listing was secured. MacEachern discussed the matter with his branch manager and RBC DS’ compliance department and it was decided that he could act as the “Broker of Record” and recommend the investment once CMT secured the listing.

However, MacEachern began discussing CMT with potential investors before the listing was secured, according to IIROC. The self-regulatory organization notes that MacEachern advised potential investors that CMT was high-risk and that they could potentially lose their entire investment.

In addition to the fine, MacEachern must also be strictly supervised for six months. As well, MacEachern must re-write and successfully complete the Conduct and Practices Handbook Courses within 12 months and pay $5,000 in costs. MacEachern is currently employed by TD Waterhouse Canada Inc.