The US Securities and Exchange Commission has sued a Toronto-based investment banker, named Richard Bruce Moore, for insider trading in Tomkins American Depositary Receipts (ADRs) in 2010.
When working at the Canadian Imperial Bank of Commerce (CIBC), Moore through interactions with Canada Pension Plan Investment Board (CPPIB) learnt about the non-public information about the acquisition offer for Tomkins, according to SEC.
Based on the information, Moore used an account in the Channel Islands to purchase 51,350 Tomkins ADRs on the New York Stock Exchange on June 28, 2010 and also bought a large number of Tomkins common shares on the London Stock Exchange.
Moore made more than $163,000 in illicit profits after the acquisition offer was announced, the SEC alleged.
SEC enforcement division associate director Scott Friestad said, "Moore spent approximately one-third of his total net worth on purchases of Tomkins securities based on information he learned in the course of his employment."
In order to settle the SEC accusations, Moore has agreed to reimburse more than $340,000, including $163,293 in disgorgement, $14,905 in prejudgment interest, and a $163,293 penalty.
The Ontario Securities Commission also initiated a parallel legal proceedings against Moore related to insider trading in Tomkins common stock.