The Alberta Securities Commission (ASC) has ruled that Bert Holtby, Dale Holtby, John Shepert, Kenneth Burdeyney and Randall Kowalchuk engaged in illegal insider trading of Edmonton-based Eveready Inc. shares in the period leading up to the April 2, 2009 public announcement of the acquisition of Eveready by Clean Harbors, Inc.

The ASC panel also found that:

  • Bert Holtby, a corporate director of Eveready, Dale Holtby and Burdeyney engaged in illegal informing (tipping) relating to the proposed acquisition of Eveready by Clean Harbors, Inc. before it was publicly disclosed;
  • Bert Holtby, Dale Holtby and Walton illegally recommended or encouraged others to purchase Eveready shares before the proposed acquisition was publicly disclosed; and
  • Bert Holtby attempted to conceal or withheld information reasonably required for an ASC investigation.

The ASC panel ruled that illegal insider trading, informing, and recommending or encouraging “are among the most serious of capital-market misconduct” and that such misconduct “not only is patently unfair to legitimate investors but also can have far-reaching effects by seriously undermining investor confidence in the fairness of our capital market.” The ASC panel found that this misconduct is conduct contrary to the public interest.

The ASC panel further ruled: “Bert Holtby used a nominee account … to trade during Eveready-imposed blackout periods and to engage in illegal insider trading. Bert Holtby also attempted to conceal or withhold information reasonably required for staff’s investigation. This behaviour, with its hallmarks of deception, is also conduct contrary to the public interest.”

The ASC panel has called for ASC staff and the five men to provide submissions on what, if any, orders for sanctions and costs ought to be made against them.