Former KPMG employee settles insider tipping and trading allegations with OSC

A former KPMG LLP employee has settled allegations of insider tipping and trading with the Ontario Securities Commission.

As part of the settlement, Andrei Miguel Postrado, 28, must “disgorge” $200,375, the profit he made from the trading, and pay a penalty of $20,000.

The Toronto resident has also been banned from trading securities for seven years. He can, however, trade within specified retirement accounts once all his penalties and fees — which include $8,500 to cover the cost of the OSC’s investigation — are paid.

According to an agreed statement of facts submitted in the settlement document, Postrado obtained confidential undisclosed material information about three companies at KPMG during the summer and fall of 2015, when he worked in the real estate and construction tax department.

“Andrei purchased securities of the reporting issuers while possessed of undisclosed material information… that each of the Reporting Issuers was going to be bought by another entity,” the OSC document says.

After the transactions were announced, Postrado sold the securities he had purchased for a profit of just over $200,000.

Postrado also conveyed the undisclosed material information to his father Fernando Postrado, according to the settlement document.

The senior Postrado settled allegations of insider trading with the OSC last month.

At that time, KPMG issued a statement saying that Andrei Postrado was terminated after the accounting firm was contacted by the OSC December of 2015.

“Given the firm’s commitment to conduct ourselves at all times with the highest integrity and respect for the law, we were appalled to learn of these allegations,” KPMG said in the statement. “We are confident that this was an isolated incident and is in no way reflective of how we conduct our business.”

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