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 public.
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 February 2012.
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 markets.
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