Earlier this year, the Ontario Capital Markets Tribunal (the Tribunal), accepted a joint settlement agreement[1] submitted by Staff of the Ontario Securities Commission (Staff) and defendant Raymond Pomroy (Pomroy), who had been accused of making false or misleading statements while holding the position of Chief Executive Officer (CEO) of SoLVBL Solutions Inc. (SoLVBL)[2]
Securities litigation and enforcement
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Latest from Securities litigation and enforcement
Acceleration of Regulatory Scrutiny Towards Crypto Assets Trading Platforms
In the last year, Québec’s Financial Markets Administrative Tribunal (the TMF) has emphasized that crypto asset trading platforms must comply with all applicable securities and derivatives regulations. Otherwise, in accordance with the TMF’s mission to protect the public and to preserve the public’s trust in financial markets, sanctions and administrative penalties might apply[1].…
Quebec’s Financial Markets Administrative Tribunal imposes exemplary penalties and sanctions on individuals who committed insider trading violations in the midst of a going-private transaction
In Autorité des marchés financiers (AMF) c. Gauthier,[1] Quebec’s Financial Markets Administrative Tribunal (TMF) ruled that Philippe Gauthier (Gauthier) and Frédéric Racine (Racine) committed insider trading violations on the basis of privileged information related to the acquisition of Napec Inc. (Napec) in 2017.
In this decision, the TMF reiterated that it is essential for…
The Supreme Court of Canada provides needed clarity on the discharge (or survival) of Securities Commission-imposed sanctions in personal bankruptcy
Between February 2020 and January 2022, we authored three blog posts about whether Securities Commission-imposed administrative monetary penalties (AMPs) and disgorgement orders should be discharged in personal bankruptcies.
Those prior blog posts are linked here: February 6, 2020, March 4, 2021, and January 13, 2022.
The law governing the discharge of AMPs…
In-House Insider Trading
In light of the unprecedented shift to a “working-from-home-economy” due to the pandemic, employees need to be extremely careful with work-related information that can accidentally be shared with their household. Confidential or even material non-public information can involuntarily be shared with family members who overhear Teams or Zoom work calls and virtual meetings and if…
Insider trading: the U.S. SEC’s “shadow trading” doctrine and its potential impacts in Canada
On April 5, 2024, in the case of the SEC v. Panuwat (Panuwat),[1] the U.S. Securities and Exchange Commission (the SEC) convinced a jury for the very first time of its “shadow trading” doctrine, according to which insider trading regulation is applicable where an individual in possession of material non-public information (MNPI) concerning the…
Fibrek Quebec Court of Appeal Highlights Importance of Market Prices in Dissent Right Valuation Proceedings
On February 2, 2024, the Quebec Court of Appeal issued its unanimous decision reducing the fair value of the Fibrek shares by 20% and emphasizing the importance of market prices in determining fair value.
Overview of the main facts discussed on appeal
On November 28, 2011, Resolute announced an unsolicited take-over bid to acquire Fibrek…
Quebec Court Enforces Penal Provisions of Securities Act in connection with “Initial Coin Offering” of “PlexCoin”
Last month, the Court of Quebec (Criminal and Penal Division) rendered its decision on the culpability of three defendants involved in the initial coin offering of the cryptocurrency known as “PlexCoin”.
Dominic Lacroix (Lacroix), the head of the PlexCoin project, Sabrina Paradis-Royer (Paradis-Royer), Lacroix’s spouse and employee, and Yan Ouellet (Ouellet), head of IT for…
Landmark Changes to the BC Securities Act are Set to Take Effect March 27
As previously reported, on October 21, 2019, the BC provincial government announced sweeping and significant changes to the BC Securities Act which are intended to give the BC Securities Commission (BCSC) the strongest powers in the country to impose tougher consequences for wrongdoers. The provincial government recently issued an order in council confirming that…
White Collar Criminals Beware – BC strengthening Securities Commission investigation and enforcement powers
On October 21, 2019, the BC provincial government announced sweeping and significant changes to the BC Securities Act which are intended to give the BC Securities Commission (BCSC) the strongest powers in the country to impose tougher consequences for wrongdoers.
Bill 33-2019, the Securities Amendment Act, 2019, sets out over 100 proposed amendments, many…