Securities regulator alleges that lawyer engaged in illegal insider trading
VANCOUVER, Aug. 1, 2013 /CNW/ - The executive director of the British Columbia
Securities Commission has issued a notice of hearing alleging that a lawyer
working in Vancouver, B.C. engaged in illegal insider trading.
The notice states that Weiqing Jane Jin, a partner in a Beijing law firm, was
hired as a consultant in the Vancouver office of an international business law
firm in February 2009. Hathor Exploration Limited, a mineral exploration
company listed on the Toronto Stock Exchange (TSX), was a client of the law
The notice states that in June 2011, Hathor entered into a confidentiality
agreement with CGNPC Uranium Resource Co. Ltd., a nuclear power company. CGNPC
was interested in Hathor's uranium property holdings.
Jin was assigned to work with Hathor in July 2011, and she was involved in
negotiations to amend the confidentiality agreement in August 2011 to include
an exclusivity clause and a notification period. On Friday, August 12, 2011,
Hathor emailed CGNPC copies of the confidentiality agreement and the amended
agreement, and requested that CGNPC sign it by the next day (when the
exclusivity period was to commence). Jin was copied on this email.
On Monday, August 15, Jin transferred a total of $50,622.06 into her
self-directed cash trading account, and on August 17, she purchased 6,000
shares at $2.88 per share. On August 18, Jin purchased an additional 3,000
shares at $2.79.
On August 19, Cameco Corporation, a Saskatchewan company traded on the TSX and
the New York Stock Exchange, made a surprise offer to acquire Hathor. Jin was
copied on correspondence between her law firm and Hathor that discussed the
On August 22, Jin purchased a further 3,000 shares of Hathor at $2.76.
Prior to the opening of trading on August 26, Cameco disclosed its offer to
the public. Following that announcement, Hathor's stock price closed at
$3.88 per share, up 45% from the previous day's closing price of 2.67 per
share. On September 7, Jin sold all 12,000 of her Hathor shares at $4.20 per
share, an increase of 49% above her average purchase price, representing a net
profit of $16,424.
The confidentiality agreement, the amended agreement and the information
concerning the Cameco offer were all material facts in relation to Hathor.
BCSC staff alleges that Jin breached securities laws by purchasing and trading
securities before the material information was made public.
These allegations have not been proven. Counsel for the executive director
will apply to set dates for a hearing into the allegations before a panel of
commissioners on September 3, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government agency
responsible for regulating trading in securities within the province. You may
view the notice of hearing on our website www.bcsc.bc.ca by typing Weiqing
Jane Jin, Hathor Exploration Limited, CGNPC Uranium Resources Ltd., Cameco
Corporation, or 2013 BCSECCOM 187 in the search box. Information regarding
disciplinary proceedings can be found in the Enforcement section of the BCSC
Please visit the Canadian Securities Administrators' Disciplined Persons List
for information relating to persons disciplined by provincial securities
regulators, the Investment Industry Regulatory Organization of Canada (IIROC)
and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at
SOURCE British Columbia Securities Commission
For media inquiries, please contact Richard Gilhooley, media relations,
604-899-6713. For public inquiries, please call 604 899 6854 or 1 800 373 6393
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CO: British Columbia Securities Commission
ST: British Columbia
-0- Aug/01/2013 21:00 GMT
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