Toronto-based commodities broker Barret Capital Management Inc. has agreed to pay a total of $225,000 in penalties and costs as part of a settlement with regulators.

Under the agreement, Barret’s membership in the Investment Industry Regulatory Organization of Canada is suspended while company owners Jamie and Idan Cohen are banned from registering with IIROC for the next 20 years.

In addition, the Cohen brothers and Barret will pay total fines of $100,000 and costs of $125,000.

The settlement comes about a month after IIROC staff accused the company and its top executives of a litany of wrongdoing, including taking client money and issuing false account statements.

According to an affidavit by an IIROC investigator, Barret has about 162 clients, more than half of them in Israel and the rest in Canada.

Despite considerable supporting evidence including transcripts of interviews with Barret clients as well as electronic records obtained by a computer forensics firm, an IIROC panel decided on Jan. 17 that the Barret executives had not been given sufficient time to prepare their response to the allegations and adjourned the case for four weeks.

However the panel took the precaution of preventing the company from trading futures and options and requiring close supervision of trades in gold and silver.

As part of the settlement Jamie and Idan Cohen admitted that between 2009 and 2011 they improperly used a trade allocation account to allocate trades to certain clients at the detriment of other clients, misled numerous clients and failed to have adequate compliance supervision.