The representative is fined $25,000, disgorges $7,693, and faces six months of strict supervision
The Canadian Investment Regulatory Organization (CIRO) held a hearing on December 4, where a panel accepted a settlement agreement with sanctions involving Omar Gouda.
The agreement followed a hearing under the Investment Dealer and Partially Consolidated Rules.
Gouda admitted he failed to use due diligence to ensure recommendations made to a client were suitable and engaged in excessive trading in the client’s accounts, which violated CIRO regulations.
As part of the settlement, Gouda agreed to a fine of $25,000 and disgorgement of $7,693, representing commissions earned in the matter.
He is required to pass the Conduct and Practices Handbook Course examination within 60 days and will be subject to six months of strict supervision.
Additionally, Gouda will pay $2,500 in costs.
At the time of the contraventions, Gouda was employed as a Registered Representative with Research Capital Corporation, a CIRO-regulated firm.
Between November 2020 and January 2022, he executed 173 trades in the accounts of a client, identified as BL.
These trades resulted in a turnover ratio of 6.57 and generated $23,762.20 in commissions, with Gouda receiving $11,881.10 as his share.
During this period, the value of BL’s account declined from $104,099.49 to $49,007.17, and the investments frequently exceeded the client’s stated risk tolerance.
CIRO noted that Gouda had no prior disciplinary history.
Since September 2022, he has been employed by and registered with another CIRO-regulated firm.
