Appeal from Sentence in the Matter of Glen Harvey Harper

TORONTO - On October 31, 2003, the Court of Appeal for Ontario released its decision on the sentence appeal in this matter.

On July 21, 2000, Glen Harvey Harper was convicted in the Ontario Court of Justice on two counts of insider trading in relation to his trading of shares in Golden Rule Resources Inc., a junior mineral exploration company listed on the Toronto Stock Exchange. The trial judge sentenced Mr. Harper to one year's imprisonment on each count, to be served concurrently, and a fine of approximately $4 million based on the application of specific fine provisions in the Securities Act governing insider trading offences.

On appeal by Mr. Harper to the summary conviction appeals court, Mr. Harper's term of imprisonment was reduced to six months on each count, to be served concurrently, and the fine was reduced to $1 million on each count. The summary conviction appeals court reduced the fine on the ground that based on the summary conviction appeals court's interpretation of the specific fine provisions, those provisions could not be applied.

The Court of Appeal granted the Crown leave to appeal on the issue of the interpretation of the specific fine provisions governing insider trading offences under the Securities Act. The Court of Appeal agreed with the Crown that the summary conviction appeals court had erred in its interpretation of the fine provisions. However, the Court of Appeal dismissed the Crown's request to restore the original fine imposed by the trial judge on the basis that the trial judge had erred in including trading accounts beneficially owned by Mr. Harper's wife and children in the application of the specific fine provisions. As a result, despite upholding the Crown's appeal on the primary issue of the application of the fine provisions for insider trading offences, the Court of Appeal affirmed the fine imposed by the summary conviction appeals court judge of $2 million, in addition to a $400,000 victim fine surcharge. Mr. Harper has already served his six month term of imprisonment.