Calgary son and mother admit they engaged in insider trading for years, ordered to pay $330,000 - CBC

A Calgary mother and son have admitted to taking part in insider trading over the course of nearly six years. (Shutterstock)Social SharingA Calgary man and his mother will have to pay $330,000 to the Alberta Securities Commission (ASC) after they admitted to taking part in a multi-year insider-trading scheme.

In a news release Thursday, the ASC said it reached a settlement agreement with Dean Labbe and his mother Julie Labbe.

The ASC says Dean worked at an investment bank where he dealt with mergers and acquisitions, giving him knowledge of transactions before they went public.

"Dean Labbe was entrusted through his employment with highly confidential information about corporate transactions, and he repeatedly exploited that trust for personal gain," Cynthia Campbell, the ASC's director of enforcement, said in a statement.

The settlement says that between December 2018 and March 2024, Dean either purchased securities, or recommended that his mom purchase securities, in 10 Canadian issuers involved in transactions that either he or his colleagues were working on.

Julie opened accounts that she allowed Dean to use, and she was aware he was using insider information, the ASC said.

The purchases were made before the acquisitions were announced, and earned the pair profits of around $130,000. The woman's accounts were closed by September 2024, and she transferred the money to Dean, according to the settlement.

As part of the settlement, Dean will be banned from trading securities for 20 years, with some exceptions, while his mother will be prohibited from doing so for 10 years.

"The 20-year trading ban reflects the need to protect Alberta investors and our capital markets from individuals who misuse material, non-public information," said Campbell.

"Fair and efficient markets depend on investor confidence that no one is trading with an unfair informational advantage."