CALGARY, June 8, 2017 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Joseph Anton Kostelecky for contravening Alberta securities laws and acting contrary to the public interest in connection with Calgary-based Poseidon Concepts Corp. Specifically, Kostelecky failed to maintain necessary books and records of Poseidon; caused, authorized and permitted or acquiesced in a breach by Poseidon of certain of its continuous disclosure obligations; and engaged or participated in a fraud.
An ASC panel ordered that Kostelecky:
- must resign all positions he holds as a director or officer of any issuer, and is prohibited from becoming or acting as a director or officer of any issuer, permanently;
- is prohibited from acting in a management or consultative capacity in connection with activities in the securities market, permanently;
- must pay an administrative penalty of $650,000; and
- must pay $100,000 of the costs of the investigation and hearing.
The ASC panel noted that Kostelecky exhibited a great propensity for evasion, deceit and dishonesty, he failed to acknowledge that his misconduct occurred in and affected our capital market, and he failed to fulfill the duties of a senior officer. "The filing of company financial information that is reliable, accurate and timely is important to foster a fair and efficient capital market in Alberta. This decision shows that fraud committed by a senior executive of a public company that results in distortion of the company's financial information is a scourge that securities regulators will not tolerate," said Cynthia Campbell, ASC Director of Enforcement.
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: Hilary McMeekin, Manager, Communications, 403.592.8186; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488