British Columbia Securities Commission
Apr 17, 2009 16:30 ET
BCSC Executive Director's Bulletin: Securities Regulator Gives Notice of a Hearing Into Alleged Illegal Insider Trading
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2009) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that Michael Kyaw Myint Hua Hu contravened the insider trading provisions of the Securities Act when he purchased shares of a TSX Venture Exchange-listed company.
The notice of hearing says that between Sept. 21, 2007 and Oct. 12, 2007, Hu, a B.C. resident, was a director and chairman of Maple Leaf Reforestation Inc., an Alberta-incorporated company listed on the TSX-V. The notice alleges that during that period, Hu bought 887,800 shares of Maple Leaf at an average price of $1 per share for a total of $861,445.80, while in a special relationship with Maple Leaf, and with knowledge that the company had entered into a memorandum of understanding to establish a bio diesel production project in China.
The notice says that on Oct. 16, 2007 Maple Leaf issued a news release announcing the China project. Its shares opened trading at $1.60 the day after the announcement, from a close of $1.30 on Oct. 12, 2007.
The notice also alleges that Hu purchased the Maple Leaf shares through another person's trading account and that he breached the Act when he disclosed to the account holder that commission staff had summoned Hu to an investigatory interview. The notice further alleges that Hu made false and misleading statements during the interview.
These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view notices of hearings on our website www.bcsc.bc.ca. If you have questions, contact Andrew Poon, media relations, 604-899-6880.
For more information, please contact
British Columbia Securities Commission
Andrew Poon
Media Relations
604-899-6880 or (Canada) 1-800-373-6393
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