John Fraleigh has agreed to a freeze on $933,000 of his assets while the Ontario Securities Commission probes suspicious stock trading.
The OSC is investigating Fraleigh’s trading of stock and options in Placer Dome Inc. prior to Barrick Gold Corp.’s $10.8 billion takeover bid.
Today, a judge approved the OSC’s request that some of Fraleigh’s securities and cash be frozen until March 31.
The $933,000 represents three times the amount Fraleigh made trading Placer Dome securities in Canada, said OSC lawyer Kelley McKinnon.
Fraleigh has consented to the freeze on $18,747 of cash as well as securities he holds in Royal Roads, Central Alberta Well Services and Mart Resources.
The cash and securities are in Fraleigh’s accounts at Dundee Securities Corp.
Ontario’s market watchdog had previously frozen more of Fraleigh’s accounts, at BMO Investorline, but it has not sought a court order extending that freeze.
Two weeks ago, the U.S. Securities and Exchange Commission launched a case against an unknown investor who purchased Placer Dome call options just days before Barrick announced a takeover bid for the company in partnership with Goldcorp Inc.
Neither regulator has laid charges or made specific allegations.
Judge allows OSC to freeze Fraleigh’s accounts
Accounts at Dundee Securities frozen until March 31
- By: IE Staff
- November 14, 2005 November 14, 2005
- 12:30