TORONTO, Aug. 23, 2012 /CNW/ - In a decision released today, an Ontario Securities Commission (OSC) panel released its Reasons and Decision on Sanctions and Costs against Shane Suman (Suman) and his wife, Monie Rahman (Rahman).
In its earlier decision on the merits, the OSC panel found that Suman, who was a senior information technology professional at an Ontario reporting issuer, had tipped Rahman about a proposed acquisition by Suman's employer of a U.S.-listed issuer, thereby breaching s. 76(2) of the Securities Act. The OSC panel also found that both acted contrary to the public interest by trading securities of the U.S.-listed issuer with knowledge of the proposed acquisition, making nearly $1.0 million (USD) in illegal profits.
In its decision on sanctions and costs, the OSC panel found that the conduct of Suman and Rahman "constitutes serious misconduct . . . that deserves severe sanctions". The OSC panel held that the "role of a senior information technology professional within a reporting issuer is a role which places the individual in a position of trust. We must deter others in similar positions from abusing that trust."
In deciding the appropriate sanctions, the OSC panel took into account a judgment against Suman and Rahman obtained by the U.S. Securities and Exchange Commission with respect to the same trading, which ordered that Suman and Rahman disgorge their illegal profits and pay civil penalties of $2.0 million and $1.0 million, respectively.
The OSC panel ordered that:
- Suman disgorge the amount of $954,938.07;
- Suman pay an administrative penalty of $250,000;
- Suman is prohibited from acquiring or trading securities permanently;
- Rahman is prohibited from acquiring or trading securities for a period of five years, after which she may trade in or acquire securities only if the costs awarded against her jointly and severally with Suman have been paid in full to the Commission;
- Suman and Rahman are permanently prohibited from acting as directors or officers of a reporting issuer; and
- Suman and Rahman pay costs of $250,000 on a joint and several basis.
A copy of the Reasons and Decision on Sanctions in this matter is available on the OSC website at www.osc.gov.on.ca.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC's investor materials available at www.osc.gov.on.ca.
SOURCE: Ontario Securities Commission
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