Poseidon Concepts senior executives settle with ASC for overstating company's financial position

CALGARY, June 16, 2016 /CNW/ - The Alberta Securities Commission (ASC) has concluded Settlement Agreements with Poseidon Concepts senior executives Lyle Dennis Michaluk, Matthew Cory MacKenzie and Clifford Leroy Wiebe in which they admit to breaching Alberta securities laws by filing financial statements that overstated Poseidon Concepts' revenue and accounts receivable. The men held the positions of Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Poseidon, respectively.

As part of the settlement:

• Michaluk and Mackenzie each paid the ASC $150,000 and agreed not to act as a director or officer of any reporting issuer for seven years; and
• Wiebe paid the ASC $75,000 and agreed not to act as a director or officer of any issuer of any reporting issuer for five years.

Among other things, the men admitted that they authorized, permitted, or acquiesced in Poseidon failing to file its interim financial statement for the third quarter of 2012 in accordance with Canadian Generally Accepted Accounting Principles.  Each man stated that they relied on U.S. executive Joseph Kostelecky and Poseidon's U.S. accounting and operations groups for the information that was disclosed in that financial statement.

"Senior executives are responsible for overseeing the establishment and maintenance of internal controls over financial reporting, to ensure the accurate and timely disclosure of company financial information.  If this responsibility is not met, senior executives will be held accountable," says ASC Director of Enforcement Cynthia Campbell.

In 2013, Poseidon disclosed that it had to restate its financial statements for the first nine months of 2012, eliminating between $95 million and $106 million of $148 million in total revenue it had previously reported for the period.

Copies of the Settlement Agreements 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 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.

SOURCE Alberta Securities Commission

For Media Inquiries: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488