OSC sanctions former investment banker for insider trading

In a settlement with the Ontario Securities Commission (OSC), a former investment banker admitted to insider trading involving mining company Tahoe Resources Inc., ahead of its acquisition by Pan American Silver Corp. in 2018.

Ontario’s Capital Markets Tribunal approved a proposed settlement between the OSC and Aaron Wolfe, who admitted to trading on information he received from an unnamed insider about a pending deal between Tahoe Resources and Pan Am Silver.

“Wolfe obtained material non-public information from a third party to a proposed acquisition of Tahoe before the proposed acquisition was generally disclosed,” the settlement said.

After the planned acquisition was disclosed, Tahoe’s share price jumped 49%, and trading on that information generated a profit of $125,064 for Wolfe.

According to the settlement, Wolfe admitted the misconduct, expressed remorse and cooperated with the regulator to settle the allegations without a hearing.

In settling the case, he agreed to a five-year ban, to disgorge his trading profits and to pay an administrative penalty of $200,000, along with $15,000 in costs.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.