Tuesday, November 9, 2010

Law Firm Insider Trading: Update on Canadian Firm Investigation

Here's an update on one of several law firm insider trading stories which broke in 2010. Recall that earlier this year an information technology leader at a prominent Canadian firm was caught accessing price-sensitive client information stored by the firm electronically:
  • He "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."
Now news comes that market regulators have agreed to settle charges in exchange for a  $1.3mm fine -- approximately twice the amount of his ill-gotten gains.

The regulator was quick to note that: “Ogilvy Renault collaborated completely with the investigation and the proceedings against  Dominic Côte do not involve the law firm in any way.” (Still, no organization wants to find itself having to cooperate with such an investigation in the first place.)

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