Friday, February 19, 2010

Another Case of Law Firm Insider Trading...

[via]: Canadian regulators have issued an order prohibiting the IT team leader at Ogilvy Renault from acting in that capacity. It is alleged that this individual: "conducted transactions in the shares of 17 companies between April 2006 and November 2009 while in possession of privileged information that allowed him to obtain a profit of more than $520,000."

The regulators note that these charges are levelled at the individual, not the firm. Still, no firm wants to see its name associated with such activity, and organizations are increasingly extending their internal confidentiality and monitoring practices to minimize the risk of internal accident or malfeasance.

Risk blog readers will recall several examples of similar situations of law firm insider trading which came to light in late 2009.

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