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Globe says OSC charges former GlobeNewswire employees

2022-10-03 08:00 ET - In the News

See In the News (C-*OSC) Ontario Securities Commission

The Globe and Mail reports in its Saturday edition that two employees of one of the world's largest newswire services, who allegedly made more than 1,500 stock trades just before various pieces of market-moving news were released, were charged Friday with insider trading and fraud by Ontario's securities regulator. The Globe's Greg McArthur writes that John Natividad and Harpreet Saini allegedly made hundreds of thousands of dollars in profits trading on inside information contained in draft news releases that were to be distributed by GlobeNewswire, their employer at the time. Both Toronto men were working as system developers at the newswire between 2018 and 2021, which is when they engaged in the alleged scheme, the Ontario Securities Commission said Friday. The OSC is prosecuting the pair under the quasi-criminal provisions of Ontario's Securities Act, which means their cases will be tried before a judge in the Ontario Court of Justice. Most breaches of securities law are argued in front of the regulator's Capital Markets Tribunal, which is less punitive and does not have the power to issue jail sentences. Separately, the U.S. Securities and Exchange Commission launched a lawsuit against both men on Friday.

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