The Alberta Securities Commission (ASC) has lowered the penalties imposed on two men for illegal insider trading relating to Edmonton-based Eveready Inc.

Bert Holtly was sanctioned for illegal insider trading and informing (tipping) and Randy Kowalchuk was sanctioned for illegal insider trading.

The revised sanction decision was made in response to the Alberta Court of Appeal’s direction to reconsider the sanctions ordered against Holtby and Kowalchuk in June 2013, the ASC says in a statement.

The Alberta Court of Appeal found that the ASC panel didn’t give adequate justification for the penalties imposed in the case.

See: ASC to appeal illegal insider trading case to SCC

The 2013 sanctions initially imposed a $1.75 million administrative penalty against Holtby and a $55,000 administrative penalty against Kowalchuk

In the ASC’s revised decision, a panel ordered that Holtby pay a reduced administrative penalty of $600,000; he is also banned from trading in or purchasing securities (with limited exceptions) and from acting as a director or officer (or both) of any issuer, registrant or investment fund manager (with limited exceptions) for 10 years to June 27, 2023.

The ASC panel ordered that Kowalchuk pay a reduced administrative penalty of $45,000; he is also banned from trading in or purchasing securities and from acting as a director or officer (or both) of any reporting issuer for four years to June 27, 2017.

Kowalchuk may trade in, or purchase, securities after June 27, 2017 only if the monetary sanctions ordered against him have been paid.

These orders are in addition to the following orders, which were not in issue before the ASC panel: Holtby is ordered to disgorge $80,678 and to pay costs of $90,000; and Kowalchuk is ordered to disgorge $54,401 and to pay costs of $22,500.

“Illegal insider trading and informing undermines the fairness of our capital market, thereby jeopardizing the confidence on which that market depends to survive and flourish,” the ASC panel states. “When insiders of reporting issuers are able to benefit themselves and others financially because their positions give them access to non-public material information, this results in an unfair capital market that fails to inspire confidence or a willingness to invest.”