The Ontario Securities Commission has banned a former chief executive of Golden Rule Resources Inc. from trading for 15 years, on top of earlier criminal sanctions.

Glen Harper was sentenced to a year in prison and fined almost $4 million for illegal insider trading back in 2000. The sentence was reduced on appeal, to six months in jail and a $2 million fine. The OSC appealed that sentence, and was denied.

However, the OSC’s decision notes that these latest sanctions aren’t intended to increase his punishment. It argues that this action is taken to protect the public from possible future violations, not to punish past wrongs.

The OSC decision notes that Harper has paid his debt to society. “However, from a prophylactic perspective, we cannot be satisfied that, absent the orders we are making, he would not improperly use material insider information again, given the opportunity.”

“Taking everything into account, Harper should not be left to freely trade in the capital markets. In view of his past conduct, protective and prophylactic orders should be made,” it says. “They will also send the message that any like-minded individuals in circumstances similar to Harper’s during his five months of trading, if they conduct themselves as Harper did, may be subject to similar prophylactic consequences regarding their access to the capital markets.”

Harper’s lawyer conceded that he should be prohibited from acting as a director or officer of any issuer for 15 years. Counsel for OSC staff also requested a cease trade order for 15 years. Since Harper is 60 years of age, 15-year bans would keep Harper out of the market, in effect, for the rest of his remaining business life.

The OSC ruled, “Harper should be cease traded for a period of 15 years and prevented from acting as a director and officer of any reporting issuer for a similar period. However, taking into account opportunities that gave rise to past problems with Harper and the reduction of opportunity to acquire inside information as a director or officer of a reporting issuer resulting from orders we are making, we are allowing two limited carve-outs that are justifiable in the particular circumstances as not likely to put the market at risk.”

The carve-outs are: he is permitted to trade for his own account or any account in which he or he and his wife have the only beneficial interest (including any registered retirement savings plan account), in debt securities, in securities of reporting issuers whose market capitalization exceeds $500 million at the time of acquisition, and in securities of any issuer that is not a reporting issuer; and, for 90 days from the date of the order in order to dispose of securities owned by him or his registered retirement savings plans.