A Toronto-based investment banker agreed to pay about $858,000 to settle U.S. and Canadian regulatory claims that he made illegal trades based on confidential information about acquisition plans for two companies.
Richard Bruce Moore, who worked at the Canadian Imperial Bank of Commerce, bought Tomkins Plc securities in 2010 after learning that U.K. firm was a takeover target through his job pitching investment ideas to the Canada Pension Plan Investment Board, the Securities and Exchange Commission said today in a statement. He will pay about $340,000 to resolve the matter.
Canadian regulators filed a related action today, including claims that Moore also made illegal trades in HOMEQ Corp. in 2012 while working for a UBS AG brokerage unit. In settling the Canadian claims, Moore agreed to pay about C$529,000 ($518,018) and to be barred from serving as an officer or director of a public company for 10 years. He admitted to the illegal conduct in the Canadian settlement.
“In today’s interconnected markets, the cooperative relationships among securities regulators mean that those who choose to engage in international insider trading should expect to face consequences across the globe,” Scott Friestad, associate director of SEC enforcement, said in the agency’s statement.
The SEC said Moore used an account in the Channel Islands to buy Tomkins U.S. securities in the weeks before the CPPIB and a Canadian private-equity firm said they would acquire the London-based maker of auto parts and bath tubs in July 2010.
The Ontario Securities Commission said Moore in 2012 took immediate steps to purchase HOMEQ securities in violation of inside trading laws after a client of UBS Securities mistakenly sent him an e-mail containing material non-public information about a proposal to acquire the Toronto-based reverse-mortgage company.
An e-mail to Herb Janick, Moore’s attorney at Sidley Austin LLP, wasn’t answered.