The appellants appealed a decision of the Ontario Securities Commission finding them liable for insider trading and tipping contrary to s. 76 of the Securities Act.
The Commission found that a corporate lawyer tipped an investment advisor about three corporate transactions, who then tipped others in a chain.
The Divisional Court upheld the findings against the lawyer and three of the investment advisors, finding the Commission's inferences from circumstantial evidence were reasonable.
However, the court allowed the appeal of one investment advisor at the end of the chain, finding the Commission made factual errors in concluding he ought reasonably to have known the information came from an insider.
The sanctions against the unsuccessful appellants were upheld.
