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The Executive Director of the BC Securities Commission (BCSC) has imposed a $50,000 administrative penalty on the CEO of a publicly-traded company for failing to file timely reports of trading in securities.
Ahmad Doroudian, the CEO and a director of B.C.-based BetterLife Pharma Inc., completed 624 public market transactions involving more than 5 million shares with a total reported value of $986,398.
As a result of Doroudian’s positions with the company, the B.C. resident was a reporting insider under national securities rules. But he didn’t report any of the trades on the System for Electronic Disclosure by Insiders (SEDI) within five days of making them, as required.
Since 2011, the BCSC has issued Doroudian 15 invoices for late-filed insider reports, and he has not paid $23,050 in associated fees for the late insider reports relating to public market transactions.
In imposing the penalties on Doroudian, BCSC Executive Director Peter Brady wrote that it is “important to demonstrate to the market that there can be consequences for late insider reporting above and beyond late fees and that the accuracy of what is filed matters.”
The penalty was imposed after giving Doroudian 30 days to request an opportunity to be heard.
There is more information about insider reporting requirements on the BCSC website.
