Two investors were found guilty of insider trading and sentenced to penalties of nearly $450,000 in connection with Rona’s sale to US giant Louise.
The Financial Markets Authority revealed on Tuesday that Alain Baudret and Reynald Moreau, respectively, were fined a total of $430,990 and $16563.
According to the ruling of the Administrative Court of Financial Markets, the two men were aware of the impending sale of Rona, in February 2016.
Sensing a good deal, the two investors bought large shares of major Quebec, to resell them as soon as the deal was announced, and made a gain of $287,327 for Mr. Baudret and $11,042 for Mr. Moreau.
In both cases, the fine amounts represent approximately 1.5 times the profits earned through insider trading.
Insider Trading by Alain Baudret [et Rénald Moreau] very serious. This behavior affects the public’s confidence in the financial markets which is likely to see their efficiency and integrity in turmoil,” Judge Antineto Melchiori commented in the judgments regarding the two men.
The court noted that the two men had never had problems with the AMF before. It also believes that the risk of repeat investors is low.
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