As the FSA launches its insider trading case in the UK against former Dorsey & Whitney corporate partner Andrew Rimmington, Dorsey & Whitney also faces troubling news in Canada. In Toronto, news spread last week that the law firm
fired Toronto partner Gil Cornblum after it became public that one of his law school pals, Stan Grmovsek, is under investigation for alleged insider trading and tipping. According to an OSC affidavit, Mr Grmovsek “has a connection” with Mr. Cornblum, whose firm acted on behalf of several of the reporting issuers and parties involved in the 11 transactions under investigation.
They include deals involving Gateway Casinos Income Fund, Glamis Gold Ltd. Meridian Gold and the Liquor Barn Income Fund and Mr. Grmovsek is alleged to have made $1-million. The implication is that the material information came from Mr. Cornblum.