An Ontario Securities Commission panel today suspended the registration of Piergiorgio Donnini, a former head trader at Yorkton Securities Inc., for 15 years for insider trading.
The panel found that in early 2000, Donnini had knowledge of a potential financing for Kasten Chase Applied Research Ltd. that had not been disclosed to the public. The panel agreed that Donnini traded in KCA shares while he had this information and as such, he acted contrary to the public interest.
Besides the 15 year suspension, Donnini must resign all positions that he holds as a director or officer of an issuer that is a registrant. He is also prohibited for from becoming or acting as a director or officer of any issuer that is a registrant for 15 years.
Donnini must pay $186,000 towards the costs the investigation and hearing.
In explaining the reasons for the sanctions, Paul Moore, vice chair of the OSC and Chair of the panel, said: “Donnini was an experienced trader. He was the fourth-largest shareholder of Yorkton, the senior liability trader and the senior institutional trader of Yorkton..”
“Donnini was well positioned to recognize the seriousness of the impropriety of trading KCA shares with material undisclosed information,” concluded Moore.