A P.E.I. man who sold investment securities has been fined $25,000 for failing to follow rules set by a national regulatory body.

John Shane MacEachern had a settlement hearing with the Investment Industry Regulatory Organization of Canada in April.

IROC found that MacEachern sold securities for a company that wasn't approved by his employer.

The settlement says MacEachern recommended and sold $178,000 of this company's securities to 17 investors between July 2010 and June 2011.

MacEachern was working for the Charlottetown branch of the investment firm, RBC Dominion Securities at the time.

While none of the transactions took place through RBC Dominion, MacEachern was expected to inform his employer of securities he was recommending and selling — something the settlement says MacEachern didn't do.

The settlement says MacEachern didn't investigate the business and so wasn't aware it had failed to file required exchange reports. Instead, the documents show MacEachern relied on information from a company representative — a man MacEachern had known about 20 years earlier.

The documents say MacEachern did warn potential investors this was a high risk investment and they could potentially lose the full amount.

The settlement doesn't give details on what happened to those investments.

In addition to the $25,000 fine, IROC says MacEachern must pay costs of $5,000. He will also be under strict supervision for six months and must successfully re-complete a conduct and practices course by next April.

MacEachern is currently working as a registered representative at the Charlottetown branch of TD Waterhouse Canada Limited.

CBC News phoned MacEachern for comment, but he did not return the call.