BCSC alleges analyst engaged in illegal insider trading, tipping

first_imgJames Langton ASIC ready to make deals with devils FINRA bans analyst for insider trading Securities regulators in British Columbia have brought further allegations of illegal insider trading in connection with B.C.-based Baja Mining Corp. Last month, the B.C. Securities Commission (BCSC) settled with an accountant at the company who sold shares in the firm after learning that it’s only mine project was way over budget, but before the cost overrun was publicly disclosed. In that case, the accountant agreed to pay $24,350 to the BCSC, and to be prohibited from trading in any issuer with whom he is in a special relationship for three years. SEC alleges man sold insider trading tips on dark web On Friday, the BCSC the the commission issued a notice of hearing alleging that an analyst for a global institutional investor, who was also in a “special relationship” with the company tipped his sister about the cost overruns, and engaged in illegal insider trading. Specifically, it alleges that Hon Seng Lum (also known as Victor Lum), an analyst at Mount Kellett Capital (Hong Kong) Ltd., advised his sister, May Lee Chan Lum, to trade in shares of Baja when he became aware of the cost overrun on Baja’s Boleo copper mine project, and before the news was publicly announced. The commission alleges that May Lum sold half of their position in Baja (182,500 shares) through a Singaporean brokerage account of a company that she controlled, which was based in the British Virgin Islands, “thereby concealing Hon Seng’s connection to the trades.” The BCSC alleges that Hon Seng “breached securities laws by using material information that had not been generally disclosed to trade securities”; and that their conduct is contrary to the public interest. The allegations have not been proven. An appearance to set dates for a hearing into the allegations is slated for September 2.center_img Related news Share this article and your comments with peers on social media Keywords Insider trading,  TippingCompanies British Columbia Securities Commission Facebook LinkedIn Twitterlast_img

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