The Alberta Securities Commission (ASC) has concluded a Settlement Agreement and Undertaking (Settlement Agreement) with Michael Baron (Baron) for breaching Alberta securities laws relating to his role in a market manipulation involving the shares of Softlab9 Software Solutions Inc. (Softlab).
In the Settlement Agreement, Baron admitted he engaged in a course of conduct he reasonably ought to have known may contribute to a false or misleading appearance of trading activity in, and an artificial price for, the shares of Softlab. Specifically, Baron admitted he, in coordination with others, engaged in uptick trading and bid support of Softlab shares in 2020.
Uptick trading and bid support are trading strategies used in market manipulations to show false momentum or interest in the trading of a stock and to create an artificial price for the stock, not reflective of genuine supply and demand. Manipulative trading is a form of fraud, and is fundamentally incompatible with investor protection, market fairness and public trust in capital markets.
As part of the Settlement Agreement, Baron paid the ASC $50,000 and agreed to resign all positions he may have as a director or officer, or both, of any reporting issuer. Baron also agreed to be prohibited, for a period of four years, from:
- acting as a director or officer, or both, of any reporting issuer;
- engaging in investor relations activities in respect of any reporting issuer; and
- trading in or purchasing securities or derivatives, with limited exceptions.
Baron was a respondent in a Notice of Hearing issued by the ASC on April 2, 2024. According to the Settlement Agreement, Baron had a less-significant role in the admitted conduct than other respondents, and no role in the other allegations described in the Notice of Hearing. A copy of the Settlement Agreement is available online.
The hearing into the allegations against the remaining Respondents was scheduled to commence on May 26, 2025, but has been adjourned. For more information on the hearing, visit the Status of Current Proceedings page at asc.ca.
The ASC gratefully acknowledges the assistance of the BC Securities Commission (BCSC), Autorité des marchés financiers (AMF), Canadian Investment Regulatory Organization (CIRO), Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and Financial Industry Regulatory Authority (FINRA) in this matter.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
