TORONTO, April 16, 2013 /CNW/ - The Ontario Securities Commission today approved a settlement agreement reached between Staff and Richard Bruce Moore (Moore), who admitted to engaging in illegal insider trading in contravention of Ontario securities law and conduct contrary to the public interest. This follows a parallel investigation with Staff of the United States Securities and Exchange Commission, which announced a similar settlement today in respect of Moore.
Moore's admissions to the OSC concern two separate instances where he traded securities wrongfully related to two public issuers, Tomkins plc. and HOMEQ Corporation.
Moore was an employee of CIBC World Markets in 2010 and admitted that, between June and July 2010, he purchased securities of Tomkins after deducing, based partly on confidential information obtained as a result of his dealings with a client, that the client would likely be acquiring Tomkins.
Moore admitted that his purchases of Tomkins securities were contrary to the public interest. Specifically, he admitted that his actions fell below the standard of behaviour expected of someone in his position and given his extensive capital markets experience, and that he ought not to have made use of information he obtained by virtue of his position as an employee of a registrant prior to its general disclosure.
Moore was an employee of UBS Securities in 2012 and admitted that, in March 2012, he received an email in error from a client of UBS, which contained material, generally undisclosed information related to the client's proposal to acquire HOMEQ. Moore took immediate steps to purchase securities of HOMEQ in breach of the insider trading prohibition in the Ontario Securities Act.
"We have made it a priority through our Insider Trading and Market Abuse Team to identify and pursue cases of insider trading and abusive trading," said Tom Atkinson, Director of Enforcement at the Ontario Securities Commission. "This individual used confidential, material information for his own gain, which is abusive of our capital markets and will continue to attract a vigorous enforcement response from the OSC."
Under the settlement agreement, subject to certain exceptions, Moore is prohibited from trading securities and acting as an officer or director of a public company for a period of ten years and prohibited from becoming a registrant or an officer and director of a registrant for 15 years.
Moore has undertaken to make a voluntary payment of $300,000, which represents all of the profits related to his trades in the common shares of Tomkins plus approximately $25,000. Moore must also pay costs of $75,000 to the Commission. In relation to the HOMEQ trades, Moore must disgorge all profits obtained of $43,268.94 and pay an administrative penalty of $86,000, which represents two times the profits made.
Moore voluntarily brought the HOMEQ conduct to the attention of OSC Staff during the investigation of the Tomkins conduct. As such, the agreed sanctions reflect credit for Moore's cooperation as per Staff Notice 15-702.
Staff of the OSC acknowledge the assistance and cooperation of the U.S. Securities and Exchange Commission and the Jersey Financial Services Commission in this matter.
A copy of the Order approving the Settlement Agreement with Moore is available at www.osc.gov.on.ca
SOURCE Ontario Securities Commission