Corel chief faces shares charge
Michael Cowpland, president and Chief executive officer of Corel, disputed charges filed through the Canadian Ontario Investments Commission (OSC), accusing him of three counts of breaking Ontario investments laws and regulations.
The commission billed Cowpland with using insider details about a lesser-than-expected quarterly financial report, for Corel’s third quarter of 1997, to market 2.43 million shares of Corel stock for around $14 million, stated Frank Switzer from the Ontario Investments Commission
“He’s billed using what is generally referred to as tipping, insider buying and selling and creating a misleading statement towards the investments commission. The holding company which he’s a director did the trade,” Switzer stated. “We allege he was owning a fabric proven fact that Corel would miss the forecast for that third quarter of 1997 with a significant margin.”
The commission administers and enforces investments legislation within the Canadian province of Ontario. Corel relies there around town of Ottawa.
In Corel’s counter-statement, Cowpland stated: “I’m searching toward finally getting an opportunity to obvious my name by answering these things, that are now greater than 2 yrs old.” The statement known as the analysis a personal matter between your commission and Cowpland, which may not modify the company’s day-to-day business – nor his position with the organization.
Cowpland continues to be Chief executive officer and president of Corel since he founded the organization 14 years back.
If found guilty, he could get a sentence as high as 2 yrs imprisonment, an excellent as high as $700,000, and should pay a problem as high as three occasions the net income acquired in the exchange question. The commission hasn’t revealed the net income in the trades.
Cowpland and the holding company are prohibited from participating in any trades for the following fourteen days, although he’s appealing an order.
In the statement of allegations, the commission stated Cowpland’s holding company offered the Corel shares from August 11 to August 14, 1997, after Cowpland was informed with a Corel v . p . that the organization would miss forecasted sales. The brand new information wasn’t revealed towards the public, the commission stated.
Corel shares around the NASDAQ stock market rose 6.67 percent today, ending at $6.5, up 40 cents.