The Ontario Securities Commission has accused a former employee at Celestica Inc. of making more than $640,000 in profit through illegal insider trading.

The Ontario Securities Commission alleges Rajeev Thakur made a series of trades between January 2003 and July 2005.

“At the time of the trades, Thakur was in a special relationship with Celestica with knowledge of material information with respect to Celestica that had not been generally disclosed,” the OSC said Tuesday in a statement.

The commission alleges that since 2001 Thakur obtained unauthorized access to the e-mail of executives and other employees of Celestica from his sister who worked in the company’s IT department.

The OSC alleges that between Jan. 28 and Feb. 20, 2003, before Celestica announced weaker-than-expected fourth-quarter 2002 results that dropped its stock price 22%, Thakur made about $204,925 in put option contract sales.

As well, the regulator alleges that in April 2004 Thakur bought shares the day before and on the day Celestica announced improved first-quarter results, sending its stock price up 17.6%, making him a $282,000 profit.

Also in April 2004, Thakur sold units of a money market fund to buy Celestica shares, then sold the shares and repurchased fund units, making a profit of about $23,898.

In addition, the OSC alleges Thakur shorted Celestica shares the day it announced lower earnings for the second quarter of 2005, dropping its shares 16%, making him a profit of about $131,233.

The allegations have not been proved.

A hearing in the case is scheduled for Feb. 12.

IE