An Alberta investor has settled with securities regulators over allegations that he illegally traded on insider information provided by his investment advisor.
The Alberta Securities Commission announced that it has settled with Jeffrey Scott Bratvold, who acknowledged that he bought shares in a company immediately before it was acquired at a premium by another firm. According to the settlement, Bratvold acquired 26,300 shares in a company called Eveready Inc. in April 2009, based on the recommendation of his investment advisor, Richard Kowalchuk, formerly of CIBC Wood Gundy. And, immediately after the takeover deal was announced, on April 29, 2009, he sold his shares for a $185,000 profit.
Kowalchuk settled with the ASC back in April 2011, acknowledging that he received inside information about the pending takeover from another client, John Holtby, who was a director at Eveready. He also admitted that he advised Bratvold and others of this information.
Under the settlement agreement, Bratvold agreed to cease trading in securities and exchange contracts for five years and pay the ASC $231,250, plus $7,000 in costs. He also admitted that he did not take sufficient steps to ensure that his trades were in compliance with securities laws, and that his actions were contrary to the public interest.
A hearing into these allegations against Holtby and others began on May 16.