SEC Charges Former In-House Counsel with Insider Trading
Aug. 21, 2018
File No. 3-18655
August 21, 2018 - The Securities and Exchange Commission today announced that a former Teekay Corporation (Teekay) in-house attorney has agreed to settle charges that he traded on inside information in advance of the July 26, 2017 announcement that Teekay and one of its affiliates had entered into a strategic partnership with Brookfield Business Partners L.P.
An SEC investigation found that Ismail Lila of Coquitlam, British Columbia, Canada learned about the impending transaction through his work as an attorney at Teekay. Lila knew, or was reckless in not knowing, that the information concerning the transaction was material and nonpublic. By trading Teekay stock based on this information, Lila violated his confidentiality obligations to Teekay and its shareholders, generating over $28,000 in illicit profits.
The SEC's order instituting settled administrative proceedings finds that Lila violated the antifraud provisions of the Securities Exchange Act of 1934, Section 10(b) and Rule 10b-5 thereunder. Without admitting or denying the findings, Lila agreed to entry of a cease-and-desist order and to pay $28,642 in disgorgement, $1,015 of prejudgment interest, and a $28,642 penalty.
The SEC's continuing investigation is being conducted by Jeffrey D. Felder and supervised by Kurt L. Gottschall of the Denver Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the British Columbia Securities Commission.