Gordon Eberwein, a Vancouver resident and shareholder of Ottawa-based online loyalty rewards platform company Ackroo Inc. (TSX-V:AKR), has admitted he engaged in “wash trades” of shares of the company and has agreed to sanctions by the British Columbia Securities Commission.
A wash trade has taken place when an investor has acted as both the buyer and the seller of a security at the same time. It can be seen as a form of market manipulation as it could lead to a false impression that trading activity has taken place.
Between February and May 2013, Eberwein made 37 wash trades by using four separate accounts at BMO Investorline. One of these accounts was held in the name of his private construction company, and the other three accounts were in his own name. He then moved his accounts to RBC Direct Investing, and between September and December 2013, he made 53 wash trades through these accounts.
“Eberwein acknowledges that his actions led to a misleading appearance of trading activity in the shares of Ackroo,” the BCSC said in a news release.
“The agreement notes that Eberwein cooperated with the BCSC’s investigation and that he did not profit from his misconduct.”
Eberwein has paid $15,000 in fines to the BCSC and has agreed not to trade in securities or purchase securities or exchange contracts for four years.
@EmmaHampelBIV
