The British Columbia Securities Commission (BCSC) is accusing a mining company analyst of engaging in illegal insider trading.
The BCSC issued a notice Thursday alleging that Robert Launder, who was the manager of project controls at a subsidiary of Baja Mining Corp., sold shares in Baja, while in a special relationship with the company, and while in possession of material facts that had not been generally disclosed. Launder lives in Princeton, B.C.
The allegations have not been proven. BCSC counsel will apply to set dates for a hearing into the allegations on January 7, 2014.
The commission is alleging that Launder engaged in insider trading when he sold 5,000 Baja shares the day before a news release was issued by the company revealing an estimated $246 million cost overrun at its copper mine project, which was the company’s sole asset.
It says that he was integrally involved in the preparation of the cost review, and that the company imposed a trading blackout in the days before it announced the results of the review. During the blackout, insiders, employees, and others, were prohibited from trading in Baja shares.
The BCSC alleges that Launder was aware of the trading blackout, and that he knew about the cost overruns long before it was disclosed to the public. As such, it says that Launder sold his shares while in a special relationship with Baja.