Stock Investigation of Terry Matthews' old "MITEL" partner and current friend....hmmmmm.... and those on this thread wonder why we don't blindly trust in CEO's/
freeflight
OTTAWA (Reuters) - The chief executive of software-maker Corel Corp. (Nasdaq:CORL - news) said Tuesday
a probe into allegations of insider trading against him by a Canadian regulator has been tainted by a newspaper
account of the investigation's conclusions.
The National Post said Tuesday that staff at the Ontario Securities Commission (OSC) have completed a 21-month investigation of
stock trades by Corel CEO Michael Cowpland. It said their report, which OSC senior management received last month, recommended
that action should be taken against Cowpland under the Ontario Securities Act.
''There hasn't been any discussion of the so-called report with my lawyer, which is normally the due process. So in other words, the due
process has totally been violated,'' Cowpland told Reuters. ''I think there's some question about impropriety of information here. Which
is highly questionable.''
The OSC, Canada's major securities regulator, would not comment on its investigation of the August 1997 trading activity of Cowpland,
who heads the Ottawa-based office and graphics software firm. The company is a minor competitor to Microsoft Corp.
(Nasdaq:MSFT - news), the software industry's dominant supplier.
The review stems from Cowpland's sale of 2.4 million Corel shares, for C$20.5 million, one month before the firm reported a surprising
$32 million third-quarter loss, sending the stock into a 40 percent decline.
Cowpland sold his shares when they were trading between C$8.20 and C$8.80.
''I can't confirm what stage the investigation is at,'' said OSC spokesman Frank Switzer. ''When that investigation comes to a
conclusion and we take action, whether there is action or we decide to close the file with no action, we will make an announcement.''
Two commissioners will decide if the OSC pursues action against Cowpland. Its options include filing charges that could result in jail
time and a minimum C$1 million fine.
The commission could also conduct its own quasi-judicial hearing, with less severe penalties than a criminal action, pursue both civil and
criminal actions, or decide there is insufficient evidence to take any action.
''There's quite a process that they go through if there is going to be a hearing, which hasn't even been started yet,'' Cowpland said.
Cowpland said his lawyer, Nigel Campbell, at Blake, Cassels & Graydon in Toronto, will receive a copy of the report when it is
completed to review its accuracy and make clarifications.
''We're just basically continuing on, business as usual,'' Cowpland said. ''This isn't really affecting day-to-day business at all.''
It appears the market is not overly concerned with the news report either.
''I don't put a lot of emphasis on it,'' said Jean W. Orr, analyst at Nutmeg Securities Ltd. in Connecticut. ''So many of these suits, in
particular, just end up as non-events. Either they're settled or they're dropped.''
Cowpland, who said he sold the shares to pay off personal loans, maintains the investigation is routine and that he will be vindicated.
Shares in Corel went downhill Tuesday, dropping 55 Canadian cents, nearly 8.5 percent, to C$6 on the Toronto Stock exchange in
moderate trade.
($1-$1.49 Canadian) |
