In Karas (Re), The Mutual Funds Dealers Association of Canada found that the respondent had failed to fully and adequately explain the risks and benefits of leveraged investment recommendations he made to at least 18 clients. He also failed to ensure that his recommendations were suitable and in keeping with clients' objectives, having regard to the "Know-Your-Client" information and their financial circumstances. His description of leveraged investing was simple and attractive. He told them that they should borrow money and he would arrange the loans. They were told to invest the money in mutual funds or segregated funds, and that over time the value of the mutual funds would appreciate and be worth more than the outstanding balance of the loan. The total of the losses for the 18 clients was estimated to be in excess of $1 million. He was fined $750,000 and ordered to pay $20,000 in costs.