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A broker has been sanctioned in a settlement with regulators after admitting that he didn’t disclose his, or his clients’, involvement with a real estate venture that ultimately went sideways.

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) approved a settlement with Gordon Albert Malic, a rep with Mackie Research Capital Corp. in Alberta. The settlement involved a $75,000 fine, a six-month suspension and an order to pay $5,000 in costs, after Malic admitted to several rule violations stemming from his involvement with outside business activity.

According to the settlement, Malic was involved in a property development business that wasn’t initially reported to his dealer; and he didn’t disclose the conflict that arose when several clients also invested in that business.

“When he eventually reported these activities to his firm, he misled them about the extent of his involvement in the business, and failed to disclose his clients’ financial interest in the business,” the settlement noted.

According to the agreement with regulators, two clients that invested in a development project through their holding companies, “lost all, or a significant portion, of their investments.”

“[Malic] also lost his own personal investment in the project, plus paid $570,000 to settle a deficiency judgment on the project company’s mortgage, which he had personally guaranteed,” the settlement also noted.