Alberta Securities Commission (ASC) staff have issued an Amended Notice of Hearing adding Edmund Shimoon to the existing proceedings related to allegations of illegal insider trading in Calvalley Petroleum Inc. shares. ASC staff allege that Shimoon, Chief Executive Officer of Calvalley Petroleum, authorized or directed Calvalley Petroleum to purchase its own shares when it was in possession of undisclosed, material information regarding a petroleum reserve evaluation. ASC staff also allege that Shimoon: provided undisclosed material information and made prohibited representations to an investor; misled Calvalley Petroleum’s board of directors regarding his expectations for the reserve evaluation; and misled ASC staff in the course of its investigation.
The Amended Notice of Hearing adds an allegation that Memet Kont, already named as a respondent in the proceeding, provided undisclosed material information and made prohibited misrepresentations to an investor, and failed to provide information about the reserve evaluation to Calvalley Petroleum’s board of directors.
Shimoon and Kont are alleged to have met with an investor several weeks before the release of a report that would show significant increases in Calvalley Petroleum’s oil reserves, indicating that the value of Calvalley Petroleum shares should rise substantially when the report was released. In addition, Shimoon and Kont are said to have not taken steps to put a halt to Calvalley Petroleum’s purchasing of its own shares when they became aware of this material information, with Shimoon instead telling Calvalley Petroleum’s Board that he was not expecting its reserves to increase.
The original Notice of Hearing named Kont, Kevin MacArthur, and Calvalley for trading in Calvalley Petroleum securities before the release of the reserve report. A hearing of this matter is scheduled to begin on September 13, 2012.
A copy of the Amended Notice of Hearing is posted 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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For further information please contact:
For Media Inquiries: Mark Dickey
Senior Communications Advisor
For Investor Inquiries: ASC Public Inquiries
Toll Free 1.877.355.4488