OSC Takes Action in Multi-Million Dollar Illegal Insider Trading Scheme

TORONTO , Oct. 27 /CNW/ - The Ontario Securities Commission (OSC) today released a Statement of Allegations and an approved Settlement Agreement with Stanko Joseph Grmovsek, related to his involvement in an illegal insider trading scheme which elicited trading profits estimated to be approximately $9 million USD .

This action follows a joint international investigation conducted by the OSC in partnership with the U.S. Securities and Exchange Commission (SEC) and the RCMP Integrated Market Enforcement Team ( Toronto ). During the course of the investigation, it was determined that Grmovsek was trading on the basis of material, non-public information acquired from several law firms over the course of a 14-year period.

In settling with the OSC, Grmovsek admitted to having engaged in illegal insider trading and having otherwise acted in a manner contrary to the public interest. In addition to being ordered to disgorge the proceeds obtained through the unlawful conduct, Grmovsek is subject to regulatory orders by the OSC including permanent prohibitions of buying or selling securities, and on becoming or acting as a director or officer of any issuer or registrant.

The RCMP Integrated Market Enforcement Team ( Toronto ) has laid criminal charges related to this conduct. Grmovsek appeared in Old City Hall Court this morning and entered guilty pleas to all criminal charges against him. The matter has been put over to Friday, October 30, 2009 to set a date for sentencing submissions.

Staff of the OSC acknowledge the assistance and cooperation of the Royal Canadian Mounted Police, U.S. Securities and Exchange Commission, U.S. Federal Bureau of Investigation, United States Attorney for the Southern District of New York, Financial Industry Regulatory Authority, Investment Industry Regulatory Organization of Canada and the Crown Law Office-Criminal (Ontario) in this matter.

Copies of the Statement of Allegations and the Settlement Agreement are available on the Commission's website (www.osc.gov.on.ca).

For further information: For media inquiries: Wendy Dey, Director, Communications & Public Affairs, [phone]; Carolyn Shaw-Rimmington, Assistant Manager, Public Affairs, [phone]; For investor inquiries: OSC Contact Centre, [phone], 1-877-785-1555 (Toll Free)