Score Media insider trading settlement nets nearly $600,000 in penalties and disgorgement

Former leader

settled

Approval with the largest securities regulator in Canada after he admitted that he organized that his wife’s friend to buy options in the company on the eve of the absorption of $ 2 billion.

The acquisition of $ 7,000 using Media Calls points shortly before the announcement of August 5, 2021 that the company on sports media sports will be purchased by Pennsylvania Pennn National Gaming Inc.

Ontario Securities Commission

on Friday.

According to the coordinated statement of facts, High Le Huin, who was finances of the vice president, learned about the acquisition before it was announced, and told his wife, Thi Anh Nguyet (Nancy) FAM, who was a financial manager to leave Bella Canada. He knew that none of them could buy or sell securities until the acquisition was announced publicly.

“Hunh enlisted Fama's friend (

Jessica)

There, in order to gain benefits from his knowledge of acquisition, using there as an intermediary to buy securities through it

TFSA

”According to the coordinated facts.

Huin also met in the house of couples in the playground in July 2021 to discuss “some investment items”, as well as the trade in options.

“Hunh provided the opportunity to invest with him in TFSA TAM, which he called“ an investment agreement … (and) gave 10,000 US dollars to a deposit in its TFSA, ”the agreed facts presented in the OSC settlement agreement. “Huynh will provide TAM with trading instructions, either personally or by phone, and will make transactions in his TFSA there.”

He also proposed to divide the profit of the scheme: 80 percent for Huynh and PHAM and 20 percent for TAM, according to the agreed facts.

Then, on July 28, 2021, Hunh told TAM to buy call options in her TFSA, and on July 29, 184, the options were purchased for $ 5152. On August 2, Hunh told Tam to purchase more options, and another 120 were purchased in TFSA for $ 1800.

According to the coordinated facts, Hunh told Tam to slowly pay his share of profit, and in cash as soon as the transaction was announced. She talked with a couple in WhatsApp to organize delivery using such code words as “toys”, with one toy related to $ 10,000.

Huyn and FAM received $ 270,000 in cash from there.

FAM, as a rule, realized that her husband and her friend, whom she knew with high school, had a schedule for exchanging an account, but she did not know about the specifics of the plan, according to the agreed facts.

Later, December 12, 2021, Huin and FAM met with Tam personally.

“Hunh told Tam to delete his contact information from his phone and gave the name and contact information of a lawyer there to call if anyone asks questions about transactions with an assessment,” the agreed facts said.

He also gave written instructions there to use part of his remaining share of arrived in her TFSA to buy other securities.

As soon as the OSC began to explore trade, a couple, which had no history of previous misconduct with some kind of securities regulator, collaborated and, thus, received a loan for this mitigating factor in settlement.

In addition, Khuin recognized his role in the insider trade scheme. FAM admitted that she participated in the behavior of “contrary to public interests” regarding trade, because she knew that it was known about acquisition before the announcement, they knew that Huin also made a plan for trade in assessing securities and accepted the advantages of insider trade.

As part of the settlement, Huynh paid an administrative fine of 325,000 US dollars, and OSC released $ 270,000. He also paid $ 40,000 for the cost of the investigation.

In addition, it was banned for seven years for trading in securities, except for certain personal investments that he includes registered education plans for his children, and he is forbidden to become a director or officer for seven years.

FAM is faced with similar prohibitions for three years and paid $ 10,000 for the cost of the OSC investigation.

There were no accusations against Tam.

This was not the first case of an insider cup and trade related to the acquisition of the media of Penn National.

June 13, 2022

US Securities and Exchange Commission

I would have levied a former programmer engineer in the subsidiary of Penn National Gaming Penn Interacture Ventures with insider trade.

The complaint of the SEC filed in the Federal District Court in Philadelphia claimed that the engineer was provided with confidential information about Penn National interest in the acquisition of the media, as well as the warnings not to exchange this information, but he bought 500 calls for money in the media within a few weeks and days that led to the announcement of the acquisition.

The regulator claimed that his trade led to illegal profit of $ 560,762, and also accused him of overturning his old friend.

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