Ming Chao Zhao, a former Bank of Montreal analyst, admitted to engaging in insider trading over an 18-month period and agreed to pay C$1.19m ($1.16m) to settle the case, according to the Ontario Securities Commission.
Bloomberg reports that Zhao, also known as Michael Zhao, will pay a penalty of C$750,000, costs of C$30,000 and disgorge C$416,719 in illegal profit as part of a settlement, the OSC said Friday in a statement. He also will be permanently barred from trading securities with certain exceptions, the agency said.
As an investment-banking analyst at BMO Nesbitt Burns, Zhao was privy to non-public information on five companies involved in merger-and-acquisition transactions, the OSC said. Between June 2010 and December 2011, he bought shares of the firms using an online discount brokerage account held by a family member, reaping about C$416,000 in profit, according to the settlement.
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