A pair of British Columbia men have settled insider trading and tipping charges with the B.C. Securities Commission (BCSC).
The regulator announced that it has entered into settlement agreements with George Boustani, who reportedly provided his friend Saad Hayek with information about his company’s financial results before they became public on five occasions.
“Hayek used that information when he bought and sold shares of the company, and then paid Boustani some of his trading profits. By doing so, Hayek admitted that he contravened securities laws regarding insider trading,” the commission said.
In settling the case, Hayek agreed to pay $364,174 to the commission, and Boustani is paying $70,000.
They are also banned from trading the securities of any company that they are in a “special relationship” with for two years.
The BCSC noted that neither man has a history of securities misconduct, and both admitted to their misconduct in this case before the BCSC issued a notice of hearing.