News Release

Securities regulator alleges that lawyer engaged in illegal insider trading

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Vancouver – 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 firm.

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 Cameco offer.

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 website.

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).

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 (toll free).

Learn how to protect yourself and become a more informed investor at www.investright.org 

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