CALGARY, March 17, 2017 /CNW/ - The Alberta Securities Commission (ASC) has found that Joseph Anton Kostelecky contravened Alberta securities laws by engaging in misconduct in connection with the 2012 financial disclosure of Calgary-based Poseidon Concepts Corp. Poseidon had issued interim financial statements that grossly overstated its revenue and accounts receivable.
An ASC panel ruled that Kosetelecky contravened the Securities Act (Alberta) by failing to maintain necessary books and records; perpetrating a fraud; causing, authorizing, permitting or acquiescing in Poseidon's failure to provide prescribed disclosure; and acting contrary to the public interest. Kostelecky is Poseidon's former Executive Vice President in charge of its U.S. operations.
The allegations originated in a February 2015 notice of hearing that also named Poseidon and three of its other executive officers as respondents. The allegations against Kostelecky's individual co-respondents were previously resolved through settlement agreements with the ASC, and the allegations against Poseidon were withdrawn.
The proceeding will now move into a second phase for the determination of what, if any, orders are warranted against Kostelecky. Staff and Kostelecky have until no later than noon on March 27, 2017 to provide their views on a timetable for the delivery and hearing of evidence and submissions on this issue.
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: Nicole Tuncay, Senior Communications Advisor, 403.297.4008; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488