An Ontario Securities Commission (OSC) hearing panel has upheld a couple of insider trading allegations against a Toronto institutional trader but dismissed other allegations that were based on more circumstantial evidence, the regulator announced Thursday.
The panel found that Cameron Edward Cornish in two instances traded on inside information from Donna Hutchinson, a former legal assistant at Davies Ward Phillips and Vineberg LLP, in Toronto, but it dismissed an allegation involving a third company.
The panel also dismissed allegations against two friends of Cornish, Patrick Jelf Caruso and David Paul George Sidders. OSC staff had accused them of al trading on tips passed along by Cornish.
In its reasons, the panel noted that the case against Caruso and Sidders was based on circumstantial evidence, and that there was no direct evidence of any misconduct.
“While in a number of instances the circumstantial evidence justifies suspicions that Caruso and/or Sidders may have engaged in illegal insider trading, in none of the instances does the evidence rise to the necessary level of clear, convincing and cogent evidence that makes it more likely than not that they did so,” the panel said in its reasons.
A future hearing will be determine any sanctions for Cornish.
Last year, Hutchinson settled allegations that she passed tips about eight potential corporate transactions to Cornish, her friend.
Hutchinson was banned for two years, but did not face any monetary sanctions.