The Crown appealed a summary conviction appeal judge's reduction of a fine imposed on the respondent for insider trading.
The respondent had traded shares of a junior mining company while possessing undisclosed material facts, avoiding significant losses.
The Court of Appeal held that the phrase 'by reason of the contravention' in s. 122(4) of the Securities Act does not require the Crown to prove the direct effect of the non-disclosure on the market price, but simply means the loss was avoided by virtue of the insider engaging in the impugned trading.
The Court also held that shares not beneficially owned by the respondent should not be included in the loss avoided calculation.
Despite correcting the legal interpretation, the Court upheld the $2,000,000 fine imposed by the appeal judge.