Senators Trade Off More Than They Realize!

I thought that trading in sports was a good thing!

But apparently, the people at the Ontario Securities Commission think otherwise. Mr Melnyk stands under suspicion of insider stock trading because of his status with the Biovail company.

The commission says the filings relate to trades in Biovail shares that were held in a number of trust accounts set up by Mr. Melnyk in 1996 to hold a large chunk of Biovail stock for himself, his family members and friends. The trustees were based in the Cayman Islands.

Uh-oh! I would say the investigation is throwing up some real serious red flags. Of course, Mr Melnyk denies the allegations

"I disagree strongly with the contention of Staff that I exercised control or direction of the shares in question in the period after the trusts were established, and with their assertion that I was required to file reports concerning these trades," he said. "I intend to pursue the swiftest possible resolution of this matter in order to demonstrate that I took my reporting obligations seriously, and that I complied with those obligations in every respect."

Some media pundits have concerns that should Mr Melnyk be found guilty, that the Senators are again looking at years of inaptitude like the kind of frustrating years that the Buffalo Sabres had when the Rigas family was charged and the league had to take over the team.

I'll be following this story with more updates on this blog.

[Via: Globe and Mail]