William Tynkaluk, then a Director of Leon Frazer & Associates, Inc., the Canadian wealth management firm, gave his clients inside information, about the confidential negotiations, by Jovian Capital Corporation, to purchase all the remaining and outstanding shares of Leon Frazer. Tynkaluk, who was a financial advisor to a number of wealthy retired Canadian businessmen, actively solicited them to trade in Jovian stock, based upon the confidential, non-public information that he acquired and possessed, by virtue of his position at Leon Frazer.
Tynkaluk touted the Jovian stock, saying that its value would greatly increase, when news of the company's purchase of all the Leon Frazer shares became public knowledge. It is not known how many of Tynkaluk's clients made such purchases, based upon his illegal insider disclosures, but the transaction records, for the period prior to the public announcement, should be examined to identify them. The profits those individuals illegally earned must be disgorged, and those original Jovian shareholders, who did not have any inside knowledge of the impending purchase, were denied the profits they would have earned, had they held their shares, until after the purchase.
Additionally, Mr. Tynkaluk asked a Canadian businessman, in the presence of a client of Tynkaluk, whether he could bring Russian purchasers to him, so that he could sell them on buying a large quantity of Jovian shares, and that he was not particular about the Source of Funds of the Russians' investment capital. He stated that dodgy or suspicious buyers would be acceptable, so long as they made large purchases of Jovian stock.
We are also wondering whether details of these illegal trades, all made prior to public release of information regarding the pending Jovian acquisition, were fully disclosed, during the subsequent acquisition of Jovian, by Industrial Alliance Insurance & Financial Services, Inc.