RBC Dominion Securities - Investment banker Andrew Rankin gets 6 months for tipping off friend - CBC - 27Oct2005

http://www.cbc.ca/story/business/national/2005/10/27/rankin-tipping051027.html
CBC
27Oct2005
Investment banker gets 6 months for tipping off friend

Andrew Rankin, once a rising star in the investment banking department of
RBC Dominion Securities, has been sentenced to six months in jail for
passing illegal inside stock tips to a friend.

He is believed to be the first person convicted of illegal stock-tipping in
Canada.


Lawyers for the Ontario Securities Commission, acting as prosecutors in
provincial court, had sought a sentence of three to five years.

Rankin's lawyer said he will appeal both the conviction and the sentence.
Rankin was expected to be released on $10,000 bail before the end of
Thursday.


a.. FROM OCT. 19, 2005: OSC seeks 3- to 5-year sentence for Andrew Rankin

Rankin was found guilty in July of 10 counts of passing tips to longtime
friend Daniel Duic about pending mergers and takeovers, but not guilty on 10
charges of insider trading.

He faced maximum jail terms of two years and fines of $1 million on each of
the 10 counts. Justice Ramez Khawly sentenced him to six months on each
count. The terms are to run concurrently, meaning the total sentence is six
months.


a.. FROM JULY 15, 2005: Former RBC manager convicted of giving illegal
stock tips

The securities commission said Duic bought and sold shares and/or options in
10 companies, including Canadian Pacific and Moffat Communications, using a
pseudonym and through offshore accounts in several jurisdictions.

Rankin, who was managing director of RBC Dominion Securities' mergers and
acquisitions group from 1999 to 2001, was fired following the firm's
internal investigation of "suspicious" trading practices.

Duic, who was charged with 10 counts of insider trading, reached a tentative
settlement with the securities commission's enforcement staff last year. He
was fined $1.9 million and banned for life from trading securities. He then
agreed to testify against Rankin.

During the trial, Duic testified he made more than $7 million from stock
trades, including $4.5 million through tips from Rankin.

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