B.C. company and its director pay $200,000 in BCSC settlement for insider trading
Vancouver – A B.C. company and its director have jointly paid $200,000 in a settlement with the B.C. Securities Commission (BCSC) for engaging in insider trading.
In July 2018, Tavistock Capital Corp. purchased shares of a Canadian Securities Exchange issuer for $625,000 as part of a private placement. Around the same time, Tavistock and others entered into consulting agreements with the issuer, pursuant to which they received prepaid consulting fees.
The issuer paid most of the private placement funds to the consultants as consulting fees – a material fact for the issuer that was not generally disclosed. Tavistock subsequently sold the shares it had purchased through the private placement for about $285,000.
Tavistock, as a consultant, was in a special relationship with the issuer. Tavistock contravened the Securities Act by transacting in shares of the issuer while knowing the material fact that had not been generally disclosed. Tavistock’s director, Robert John Lawrence, also contravened the Act by authorizing or permitting Tavistock’s misconduct.
As part of the settlement, Tavistock and Lawrence are banned for three years from purchasing any securities or exchange contracts of any reporting issuers with which they are in a special relationship.
In 2021, the executive director of the BCSC issued an Amended Notice of Hearing naming Tavistock and Lawrence, among others. As a result of this settlement, the executive director has issued a Notice of Discontinuance with respect to Tavistock and Lawrence.
A hearing for the remaining respondents in the Amended Notice of Hearing – Justin Edgar Liu, Anthony Kevin Jackson, Cameron Robert Paddock and their related companies – will begin Sept. 11, 2023.
About the B.C. Securities Commission (www.bcsc.bc.ca)
The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
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