Mar 6, 2013 / 6:00 am
The Alberta Securities Commission has ruled that a prominent Penticton businessman, along with others, engaged in illegal insider trading of Edmonton-based Eveready Inc. shares.
Randy Kowalchuk, past president of the BC Liberal Penticton Riding Association and former president of the Penticton and Wine Country Chamber of Commerce, traded in the shares in April of 2009.
The hearing focused on allegations of illegal insider trading concerning purchases of Eveready leading up to the April 29, 2009 public announcement of the acquisition of the company by Clean Harbors, Inc.
Staff alleged that Bert Holtby, a menber of Eveready's board of directors, informed Richard Kowalchuk and others of non-public changes in respect to the company and recommended or encouraged them to buy shares.
Richard Kowalchuk, Randy's brother and investment broker, is then believed to have tipped him off, according to the ruling.
Holtby denied telling Richard Kowalchuk in March, 2009 that he should be purchasing shares.
He further denied telling him about the proposed acquistion before it was publicly announced.
Richard Kowalchuk, who had a long relationship with Holtby, has since stated he kept a close eye on the market and acted in the best financial interests of his clients.
Randy Kowalchuk has also since emphatically denied that his brother told him about the proposed acquisition. He stated he made the purchase of shares because there were funds available in the account and he wanted the money to be working, growing and building.
Randy Kowalchuk is now president of Naramata Benchlands Properties.
In an email Tuesday, he said he had no comment, as he continues to wait for more information from the ASC staff and commission.
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