Introduction
It is trite law that evidence will not be inadmissible simply
because it is circumstantial, rather than direct. However, the
appropriate use and weight to be given to such evidence varies with
the context of each case and the area of law in which it arises. In
the case of the regulatory and quasi-criminal offences of insider
trading and tipping, particular care must be taken to avoid a
mechanistic application of certain factors, recently developed by
the provincial securities regulators (including the Ontario
Securities Commission (the "OSC" or the
"Commission")) to create a compelling inference of the
offences.
Insider trading and tipping are offences under provincial
securities legislation and may be prosecuted criminally as a
provincial offence. Direct proof of insider trading or tipping
often does not exist and instead triers of fact are asked to
consider circumstantial evidence. Reliance upon relevant
circumstantial evidence may be appropriate
