A former senior reservoir specialist at Vermilion Energy, Behjat Haghshenas, has recently found herself at the center of a significant legal matter involving illegal insider trading.
The Alberta Securities Commission revealed that Haghshenas has willingly agreed to pay a substantial penalty of C$400,000 (equivalent to $302,755 USD) in connection to her unlawful activities regarding the trading of shares linked to a takeover target.
Specifically, these shares pertained to Leucrotta Exploration, a company that Vermilion Energy was in negotiations to acquire.
As part of her settlement with the Alberta Securities Commission, Haghshenas has also consented to a ten-year ban from engaging in any trading activities.
This trading ban, encompassing a decade, is one of the longest and most severe penalties imposed by the commission in recent memory.
The Alberta Securities Commission, in a statement to Reuters, highlighted the exceptional nature of this settlement, emphasizing its record-breaking nature both in terms of the penalty amount and the duration of the trading ban.
Haghshenas openly admitted to her involvement in illegal insider trading, particularly with regards to Leucrotta Exploration’s shares, prior to Vermilion Energy’s acquisition of the company.
This unauthorized trading enabled her to reap a profit of C$146,400, underscoring the gravity of her misconduct.
The securities regulator, in its statement, stated that Haghshenas was privy to material information regarding the potential acquisition, which was not publicly disclosed.
Despite this, she proceeded to purchase Leucrotta shares while possessing this confidential knowledge.
In the wake of these developments, neither Behjat Haghshenas nor Vermilion Energy has issued an immediate response to Reuters’ requests for comments on the matter.
This silence from both parties leaves room for speculation about their perspectives on the situation.
Additionally, it’s worth noting that the settlement involving Haghshenas represents a notable case in the broader landscape of illegal insider trading in Canada.
According to the Canadian Securities Administrators (CSA), for the year ending on June 30, fines imposed or collected for illegal insider trading by CSA members amounted to C$496,008.
This figure marks a decrease from the previous year when the fines reached C$682,554 for the same period, suggesting a fluctuating regulatory landscape in the country’s financial markets.