TORONTO, May 15 /CNW/ - At a hearing held today, the Ontario Securities
Commission (OSC) approved a settlement agreement that was entered into with
Staff of the Commission and Rajeev Thakur.
In the settlement agreement, Mr. Thakur admitted that he committed
illegal insider trading. He purchased and sold securities of Celestica Inc.
while in a special relationship with the company and with knowledge of
material information that had not been generally disclosed contrary to section
76 (1) of the Securities Act. Mr. Thakur admitted that he was aware of
Celestica's financial results before those results were generally disclosed.
While employed at Celestica as a Director of Outsourcing Strategies, Mr.
Thakur gained unauthorized access to the e-mail of all members of Celestica,
including senior management. He then made a series of trades which resulted in
a profit of approximately $642,056.
In approving the settlement agreement, the Commission ordered Mr. Thakur
to:- disgorge to the Commission the amount of $642,056;
- pay to the Commission an administrative penalty in the amount of
- pay costs in the amount of $25,000.In addition, the Commission Order permanently prohibits Mr. Thakur from
acting as an officer or director of any registrant or issuer, and requires him
to permanently cease trading in securities, with some limited exceptions for a
mutual fund account.
In approving the settlement agreement, Commission Panel Chair, James
Turner said, "this conduct constitutes blatant insider trading. We have
applied the principle that no one should profit from their breach of the
Securities Act. The administrative penalty imposed constitutes a very
substantial portion of Mr. Thakur's net assets."
OSC litigator Matthew Britton stated that, "Mr. Thakur surreptitiously
gained access to Celestica's confidential information and used that
information to make profitable trades on his own behalf. Mr. Thakur, in
committing illegal insider trading, committed a very serious offence."
Copies of the Settlement Agreement and the Commission's Order approving
these agreements are available on the Commission's website
For further information: For Media Inquiries: Wendy Dey, Director,
Communications & Public Affairs, (416) 593-8120; Laurie Gillett, Manager,
Public Affairs, (416) 595-8913; Carolyn Shaw-Rimmington, Assistant Manager,
Public Affairs, (416) 593-2361; For Investor Inquiries: OSC Contact Centre,
(416) 593-8314, 1-877-785-1555 (Toll Free)