In short
- Nathoo coordinated trading activity to create a false and misleading appearance in Softlab shares and failed to report insider acquisitions.
- He agreed to resign all director positions, received eight-year prohibitions, and must pay $105,000 to the ASC.
What happened
Alnoor Fatehali Nathoo, a former director of Softlab9 Software Solutions Inc., settled with the Alberta Securities Commission after admitting to market manipulation and failing to comply with insider reporting requirements. He coordinated trading activity between February and November 2020 to artificially increase Softlab's share price using his own and his spouse's accounts.
Nathoo failed to report shares acquired from another Softlab director and through his spouse’s account, breaching Alberta securities laws. As part of the settlement, he must resign all director positions, faces eight-year prohibitions from capital market activities, and is required to pay $105,000 to the ASC.
Nathoo admitted he engaged in conduct he knew may contribute to a false or misleading appearance of trading activity in, and an artificial price for, the shares of Softlab.
In numbers
- $105,000 Settlement payment to ASC
- $20,000 Costs included in settlement payment
Named in this item
Organization, regulator CA — —
Organization, regulator CA — —
What compliance teams should check
- Review Softlab9 Software Solutions Inc. trading activity between February and November 2020 for signs of uptick trading and bid support.
- Verify insider reporting compliance for share acquisitions from other directors and through spouse accounts as described in the ASC Settlement Agreement and Undertaking.
- Monitor for similar market manipulation typologies involving coordinated trading to create false momentum or artificial prices in reporting issuers.
Why it matters
This settlement highlights the risks of market manipulation and insider reporting failures, which can distort price discovery and undermine investor trust. Compliance officers must be vigilant for coordinated trading strategies like uptick trading and bid support, especially when directors use multiple accounts. The eight-year prohibitions and financial penalties underscore the regulatory consequences for such breaches, reinforcing the importance of robust monitoring and disclosure controls to protect capital market integrity.
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