ASC settles with Medicine Hat man regarding allegations of illegal insider trading in Holtby case

CALGARY, May 24, 2012 /CNW/ - The Alberta Securities Commission (ASC) has concluded a settlement with Jeffrey Scott Bratvold of Medicine Hat, Alberta.  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.

In the Settlement Agreement, Bratvold acknowledged that his investment adviser, Richard Kowalchuk, advised him on April 18, 2009 that Eveready Inc. was an attractive candidate for a takeover and that it was a good time to buy Eveready stock.  Kowalchuk encouraged Bratvold to purchase shares and Bratvold bought 26,300 Eveready shares between April 21 and April 23, 2009.  Bratvold sold his shares on April 29 shortly after Clean Harbours, Inc. and Eveready publicly announced Clean Harbour's takeover of Eveready.

Bratvold admitted he did not take sufficient steps to ensure that his trades were in compliance with Alberta securities laws and that his actions were contrary to the public interest.

In April 2011, Kowalchuk entered into a Settlement Agreement with the ASC and admitted his role in illegal insider trading allegations regarding Eveready shares. Kowalchuk acknowledged that he received material facts regarding the impending takeover of Eveready from John Holtby, a director of Eveready and that he advised Bratvold and others of this information.

A hearing into these allegations against John Holtby and others commenced on May 16, 2012 in the ASC Hearing Room on the 5th floor, 250 - 5th Street S.W., Calgary, Alberta.

Copies of the Settlement Agreements with Bratvold and Kowalchuk, as well as the Notice of Hearing outlining the allegations against Holtby and others, can be found 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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Mark Dickey
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