B.C. regulator alleges North Vancouver man engaged in insider trading
British Columbia's securities regulator is accusing a North Vancouver man of failing to disclose material information about a company for which he was an executive, as well as engaging in insider trading.
The allegations from the executive director of the B.C. Securities Commission against Mark Morabito and his former company Canada Jetlines Ltd. have not been proven. The executive director will present his evidence at a hearing to be scheduled next month.
The commission outlined the allegations against Morabito in a news release Friday, saying that the North Vancouver resident was the executive chairman and a director of Canada Jetlines in September 2017, when the company announced that it had entered into a letter of intent to lease two aircraft.
The announcement stated that the planes would be delivered in April 2018, and that the ultra-low-cost airline would begin flight operations in June of that year.
According to the BCSC, the letter of intent was terminated in December 2017, "after Canada Jetlines tried unsuccessfully to extend the payment terms."
The termination was a "material change" to the company's situation, and it led to a delay to the start of flight operations, another material change, the commission said.
Canada Jetlines did not make the news of either of these changes public until three months after they occurred, a delay the commission said constitutes a violation of the B.C. Securities Act.
When the company published news of the termination and delay on March 13, 2018, its stock price decreased by 38 per cent over two days, according to the BCSC.
During the period between the termination of the letter of intent and the public release of that information, the commission alleges that Morabito transferred 352,945 shares of the company to his spouse, with the knowledge that the shares would be sold.
The BCSC alleges that this transfer of shares constituted insider trading.
According to the commission's notice of hearing, Canada Jetlines' share price was $1.42 before the March 13 announcement. By March 15, it had fallen to 87 cents.
The commission does not cite a specific dollar amount of material gain from the alleged insider trading. However, the commission's numbers indicate 352,945 shares would have been worth more than $500,000 on March 13, 2018, and would have been worth just over $300,000 two days later.
CTVNews.ca Top Stories
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
BREAKING Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Prince William and wife Kate thank public for birthday messages for son Louis
Prince William and his wife Kate thanked the public for their messages which had been sent to mark the sixth birthday of their youngest son Louis on Tuesday.
She was the closest she'd ever been to meeting her biological father. Then life dealt her a blow
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Fire engulfs old Edmonton municipal airport hangar
A historical hangar at the former Edmonton municipal airport beside the NAIT main campus was on fire Monday night.
Soft skills, preparation can help new graduates land jobs, experts say
As new graduates enter the workforce over the next few weeks, they are likely to face challenges getting their foot in the door and must be prepared to effectively communicate what they bring to the company.