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Securities Commission approves settlement with analyst over insider trading
TORONTO – The Ontario Securities Commission approved an insider trading settlement Friday with a former analyst at BMO Nesbitt Burns who bought shares of five companies he knew were in the midst of takeover deals.
Ming Chao Zhao, also known as Michael Zhao, was ordered to pay a $750,000 administrative penalty, $30,000 in costs and return $416,719 of profits.
Under the settlement, he has also been permanently banned from trading securities and from becoming a registrant, or a director or officer of a registrant.
Zhao is also banned from becoming a director or officer of an issuer for 10 years.
The regulator says between June 2010 and December 2011, Zhao used a relative’s brokerage account to buy shares of five companies that, because of his position at BMO, he knew were going to announce merger and acquisition deals.
After the announcement he sold the shares, earning a profit of roughly $416,000.
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