An Ontario Securities Commission hearing panel has fined Harald Seeman, the founder and chief financial officer of Toronto-based Big Rock Labs Inc. (BLA), $100,000 after he admitted to manipulative trading in his own firm’s shares
The hearing panel also and banned him for five years from trading and from serving as a director or officer and ordered Seeman to pay costs of $25,000.
Seemann engaged in manipulative trading in BLA shares through his own trading accounts and the accounts of others (including his spouse, father-in-law, and other company insiders), “which created a misleading appearance of market activity in an attempt to generate interest and create liquidity in BLA shares, and to sell BLA shares at beneficial prices,” the hearing panel stated in its oral reasons for approval of a settlement.
BLA began as a tech company, but attempted to pivot several times, before ending up as a blockchain developer for the marijuana industry by the end of 2017. “In 2016 and 2017, BLA tried to change its business numerous times, from technology development to real estate and then to energy resources. In November 2017, BLA changed its name to Blox Labs Inc. In December 2017, it entered into a partnership with an arms-length third party, and commenced development of a blockchain based smart contract supply chain management platform for the legalized cannabis industry,” the hearing panel stated in the settlement agreement.
OSC staff did not allege that Seemann earned a profit from his manipulative trading; he co-operated with the regulator’s investigation and saved the OSC significant time and resources by settling the case.