ASC orders sanctions in case of illegal insider trading of Edmonton-based Eveready Inc. shares

CALGARY, July 2, 2013 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned John (Bert) Holtby, Kenneth Burdeyney, Gayle Walton, Randall Kowalchuk, Dale Holtby and John Shepert for variously engaging in illegal insider trading, informing (tipping) and recommending or encouraging relating to Edmonton-based Eveready Inc.

In its decision, an ASC panel ordered that:

• Bert Holtby must pay an administrative penalty of $1,750,000, disgorge $80,678, and pay costs of $90,000.  Bert Holtby is permanently banned from trading in or purchasing securities and from acting as a director or officer of any issuer, registrant or investment fund manager.
  
  
• Burdeyney must pay an administrative penalty of $20,000, disgorge $8,270, and pay costs of $27,000.  Burdeyney is banned for five years from trading in or purchasing securities and from acting as a director or officer of any reporting issuer.
  
  
• Walton must pay an administrative penalty of $90,000, disgorge $89,386, and pay costs of $22,500.  Walton is banned for four years from trading in or purchasing securities and from acting as a director or officer of any reporting issuer.
  
  
• Kowalchuk must pay an administrative penalty of $55,000, disgorge $54,401, and pay costs of $22,500.  Kowalchuk is banned for four years from trading in or purchasing securities and from acting as a director or officer of any reporting issuer.
  
  
• Dale Holtby must pay an administrative penalty of $100,000, disgorge $56,915, and pay costs of $38,000.  Dale Holtby is banned for 10 years from trading in or purchasing securities and from acting as a director or officer of any reporting issuer.
  
  
• Shepert must pay an administrative penalty of $100,000, disgorge $139,843, and pay costs of $25,000.  Shepert is banned for five years from trading in or purchasing securities and from acting as a director or officer of any reporting issuer.

Further, each of Burdeyney, Walton, Kowalchuk, Dale Holtby and Shepert may trade in or purchase securities after the time periods listed above only if he or she has paid the monetary sanctions ordered against him or her.

In imposing the sanctions it did, the ASC panel stated, "We need to communicate not only to the Respondents but also to other market participants that tangible and significant consequences will be meted out to those who have engaged in illegal insider trading, informing and recommending or encouraging" and that such illegal activities "will not be tolerated in Alberta".

Copies of the merits decision and sanction decision are available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws.  It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE: Alberta Securities Commission