Daniel Duic has agreed to pay the Ontario Securities Commission more than $1.9 million for insider trading, slightly more than he made after being tipped to undisclosed information by his friend, investment banker Andrew Rankin.

Rankin, who was managing director of mergers and acquisitions at RBC Dominion Securities from 1999 to early 2001, faces Securities Act charges of insider trading and tipping arising from the same transactions.

RBC suspended Rankin in April 2001, after it found suspicious trading.

A panel of OSC commissioners on Wednesday approved and made public an earlier settlement that its staff had reached with Duic.

As well as the repayment, Duic admitted he had traded on insider information. He has also agreed to co-operate with the OSC and has been barred from securities markets.

Duic made $1.2 million and had an unrealized gain of $600,000, for a total of $1,892,098, by trading in shares of Canadian Pacific and Moffat Communications on the basis of insider information from Rankin, an agreed statement of facts says.

He has to make a $1.9-million settlement payment to third parties the OSC will pick “for purposes that benefit Ontario investors,” and pay $25,000 costs.

The agreed statement of facts says between October 1999 and March 2001, Rankin told Duic information “related to a pending merger and acquisition transaction about certain reporting issuers” which Rankin learned in his job at RBC because the brokerage house was acting as an adviser on the deals.

Using this undisclosed information, Duic bought securities in the companies, which rose after the merger or acquisition deal was publicly disclosed.

Rankin appears in court Thursday. He faces a possible jail sentence if convicted.