CALGARY – June 8, 2017 – 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.
A copy of the decision 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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