The Alberta Securities Commission (ASC) has ruled that John (Bert) Holtby, Dale Holtby, John Shepert, Kenneth Burdeyney and Randall Kowalchuk engaged in illegal insider trading of Edmonton-based Eveready Inc. shares.
The ASC panel also found that:
- Bert Holtby, Dale Holtby and Kenneth Burdeyney engaged in illegal informing (tipping) relating to the proposed acquisition of Eveready by Clean Harbors, Inc. before it was publicly disclosed;
- Bert Holtby, Dale Holtby and Gayle Walton illegally recommended or encouraged others to purchase Eveready shares before the proposed acquisition was publicly disclosed; and
- Bert Holtby attempted to conceal or withheld information reasonably required for an ASC investigation.
The ASC panel ruled that illegal insider trading, informing, and recommending or encouraging “are among the most serious of capital-market misconduct” and that such misconduct “not only is patently unfair to legitimate investors but also can have far-reaching effects by seriously undermining investor confidence in the fairness of our capital market.”
The ASC panel found that this misconduct is conduct contrary to the public interest. The ASC panel further ruled: “Bert Holtby used a nominee account . . . to trade during Eveready-imposed blackout periods and to engage in illegal insider trading. Bert Holtby also attempted to conceal or withhold information reasonably required for Staff’s investigation. This behaviour, with its hallmarks of deception, is also conduct contrary to the public interest.”
The ASC panel has set dates for ASC staff and the named parties to provide submissions on what, if any, orders for sanctions and costs ought to be made against the named parties.
Copies of the Settlement Agreements entered into by ASC staff and Richard Kowalchuk, Dale Stock, Allan Wreggit, James Douglas and Jeffrey Bratvold in relation to this matter can also be found on the ASC website.