CALGARY, Feb. 8, 2012 /CNW/ - Alberta Securities Commission (ASC) staff
are seeking to reciprocate an order imposed by the British Columbia
Securities Commission (BCSC) against Jerome John Rak.
As part of a December 8, 2011 BSCS settlement agreement involving
illegal insider trading, Rak admitted that he was in a special
relationship with Velo Energy Inc., an Alberta company that was
planning to hire a new president and CEO, when he purchased 172,000
shares of Velo Energy in August 2009. Rak admitted he had knowledge
of Velo Energy's plan to hire Arthur Millholland, the former president
and CEO of Oilexco Inc., before it was generally disclosed to the
The BCSC ordered, among other things, that Rak be prohibited from
purchasing or trading securities or exchange contracts of any reporting
issuer with whom he is in a special relationship for 10 years, and that
he be prohibited from acting as a director or officer of any reporting
issuer for five years.
ASC staff seek reciprocation of the BCSC orders to protect Alberta
investors and the Alberta capital market.
It is anticipated that the ASC panel will consider this application in
A copy of the Notice of Hearing is 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
SOURCE Alberta Securities Commission
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