Former RIM employee conducted insider trading: OSC

By Staff | August 3, 2012 | Last updated on August 3, 2012
1 min read

An OSC Panel has released its reasons and decision in the matter of Paul Donald, a former RIM officer and employee.

Staff alleged Donald engaged in insider trading while at RIM, by purchasing securities of Certicom while in possession of material, undisclosed information, and while in a relationship with the company.

It also says Donald acted primarily due to knowledge that RIM was proposing to make a takeover bid, or to become a party to an amalgamation, merger or similar business combination with Certicom.

The Panel found Donald was not in a secret relationship with the company being purchased—as RIM had not yet reached the proposal stage of the acquisition—but did find he engaged in conduct contrary to the public interest by purchasing its securities based on undisclosed knowledge.

He instructed his broker purchase $300,000 worth of Certicom shares, and between August 21, 2008 and September 15, 2008, Donald acquired 200,000 shares of Certicom through his broker at a total cost of $305,000. Following the purchase of the company, he made $600,000 from the sale of his holdings.

The Panel holds market participants and officers of public companies, such as Donald, are expected to adhere to a high standard of behaviour. Donald clearly failed to meet these standards and put the integrity of Ontario’s capital markets at risk.

The Panel ordered a hearing with respect to sanctions and costs will be held on September 13, 2012.

A copy of the Reasons and Decision is available at staff


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