Monday, 30 May 2016
Last updated 2 days ago
Apr 2 2008 | 4:30pm ET
A former hedge fund trader has been charged with market manipulation by Canadian regulators.
The Ontario Securities Commission said yesterday that Darren Delage engaged in certain trading practices to boost the price of Environmental Applied Research Technology House Earth (Canada) Corp. while he was trading for Polaris Securities’ energy hedge fund. The OSC alleges that Delage traded EAR shares just before the market close to boost its price, as well as entered into trades at higher prices than the most recent reported trades.
Delage “knew or ought reasonably to have known… would result in or contribute to a misleading appearance of trading activity in EAR shares, or an artificial prices for those shares,” OSC said in a statement.
The allegedly illicit trades took place during the summer of 2005, when Delage was executing most of the trades for the C$25 million Polaris Energy Offshore Master Fund. Polaris fired him in July of that year after an investigation into his trading practices.
OSC has scheduled a hearing for April 29.