Newswire employees investigated for insider trading

Two Toronto-area programmers for GlobeNewswire, one of the largest wire services in the world, are under investigation as part of an insider-trading probe, reports Greg McArthur of The (Toronto) Globe and Mail.

McArthur writes, “The regulator alleges that two software developers for Intrado Corporation, the U.S.-based telecommunications company that owns GlobeNewswire, regularly texted each other about draft corporate press releases scheduled to be issued, and executed trades on that material, non-public information.

“The allegations are contained in an application filed in court in March by the OSC. The regulator is asking a judge to extend a freezing order on the TD trading accounts of one of the GlobeNewswire programmers, Harpreet Saini.

“None of the allegations has been proven in court.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.