Edmonton man settles with ASC for trading shares on a tip from a friend
CALGARY – March 23, 2017 – The Alberta Securities Commission (ASC) has concluded a Settlement Agreement with Edmonton resident Khalid Jawhari for trading securities of Artek Exploration Ltd. on a tip from a friend.
In the Agreement, Jawhari admitted he purchased 41,500 shares of Artek on February 20, 2015, through a numbered company, following a telephone discussion with long-time friend Aouad Choufi. Choufi, then employed as an exploitation engineer with Kelt Exploration Ltd., informed Jawhari that Kelt was looking at Artek, that it was a good buy, and that he (Choufi) was buying shares.
Three days after Jawhari’s purchase, on February 23, 2015, Artek/Kelt announced that Kelt was acquiring all the outstanding shares of Artek, at a 61 per cent premium to its then average trading price. Jawhari sold his Artek shares on February 23 and 25, for a profit of $39,868.
Under the Agreement, Jawhari paid the ASC $59,802 (1.5 times the profit he earned from his trading), plus $7,500 in investigation costs. He also agreed to cease trading in securities for three years, except through a single account, with a registrant having possession of the Agreement. Choufi settled with the ASC on February 10, 2016, paying $76,290 and accepting a six year cease trade order.
A copy of the Settlement Agreement 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 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.
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