OTTAWA CRIMINAL DEFENCE LAWYER – Insider trading is a criminal offence in Canada under both the Criminal Code and the Securities Act. For those unfamiliar with the term, insider trading is the act of providing, or acting on, a “tip” concerning the financial future of a publicly-traded company.
There are serious consequences for both those who commit insider trading, and those who provide the tips. If convicted, “tippers” face up to five years in prison. Insider traders themselves could spend up to ten years in prison.
There was a recent piece in the Globe and Mail entitled Ensuring Secrets Stay That Way which discusses the modern framework for prosecuting insider traders and tippers in Ontario. The article discusses the case of Mitchell Finkelstein, an Ontario lawyer recently charged with insider trading.
As the article clearly outlines, an insider trading offence can be extremely difficult to prove – and even more difficult to convict with a prison sentence.
Tips can come from a variety of places. They can come from a corporate “insider” – defined as a senior officer or executive who is privy to major upcoming business decisions such as takeover. They can also come from business lawyers who assist with planning and implementing these major business moves.
The best way to avoid insider trading charges in Ontario is to report any trading you do as an insider. These reporting forms are readily available from the government and give you an opportunity to disclose your status as an insider – preventing you from being prosecuted for doing the trading.
Have you been charged with insider trading, fraud, or any other white-collar criminal offence in Ontario? A top criminal defence lawyer can help you determine the best way to have your charges dropped. For more information, contact the criminal defence lawyers at Auger Hollingsworth by email [email protected] or by phone at (613) 233-4529.