ASC alleges Poseidon executives overstated the company's revenue

CALGARY, Feb. 6, 2015 /CNW/ - Alberta Securities Commission (ASC) staff  have issued a Notice of Hearing alleging that Poseidon Concepts Corp., Lyle Dennis Michaluk, Matthew Cory MacKenzie, Clifford Leroy Wiebe and Joseph Anton Kostelecky breached Alberta securities laws by filing financial statements that overstated Poseidon's revenue and accounts receivable.  In doing so, ASC staff also allege they acted contrary to the public interest.

ASC staff further allege that:

  • Michaluk and MacKenzie signed and filed with the ASC false or misleading certificates for certain of Poseidon's annual and interim financial statements;
  • Kostelecky failed to maintain the books and records necessary to properly record Poseidon's business transactions and financial affairs; and
  • Kostelecky engaged in a course of conduct that perpetrated a fraud on a person or company.

These allegations have not been proven.

An appearance to set a date for a hearing will be held on Thursday, April 2, 2015 at 10 a.m. in the ASC Hearing Room, 5th Floor, 250 – 5th Street SW, Calgary, Alberta.

A copy of the Notice of Hearing is available on the ASC website at www.albertasecurities.com.

ASC staff appreciate the assistance of the U.S. Securities and Exchange Commission (SEC) in this investigation. The SEC has today charged Kostelecky, a U.S. resident, with enabling a financial fraud in connection with Poseidon. Kostelecky has agreed to settle the SEC charges by paying a $75,000 penalty and being barred from serving as an officer or director of a U.S. publicly traded company.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting 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

For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488

RELATED LINKS
http://www.albertasecurities.com

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