(October 14 – 16:45 ET) –
The Ontario Securities Commission
has filed allegations of insider
trading against flamboyant
Corel Corp. chief executive
Michael Cowpland.
The OSC has filed an information
citing three violations of the
Ontario Securities Act against
Cowpland in the Ontario Court of
Justice. Cowpland’s personal
holding company, M.C.J.C.
Holdings Inc. also faces a
single charge.
Cowpland denies the charges.
In a prepared statement he says:
“I am looking forward to finally
having a chance to clear my name
by responding to these matters
which are now more than two years
old.” The firm’s stock was halted
pending the announcement.
The OSC alleges that Cowpland
sold $20.4 million of stock one
month before it announced a
surprising US$32 million loss
back in 1997. It alleges that
Cowpland knew the firm would fall
short of its targets when he made
the trade. It also says that
Cowpland “submitted untrue or
misleading statements to the
Commission” at a voluntary
interview with OSC staff in May
1998.
The existence of the OSC’s
investigation of Cowpland’s
trading was first disclosed in a
prospectus for World Heart Corp.,
a company with which Cowpland is
involved.
In connection with these
charges, the OSC has also
restrained Cowpland and MCJC
Holdings from trading Corel for
15 days. It will hold a hearing
on October 28 to consider
extending that cease-trade order.
At that hearing the OSC will
consider whether to ban or
suspend Cowpland and/or his
company from trading, and whether
they should be reprimanded by the
commission.
A court date for Cowpland is
set for Old City Hall Court in
Toronto on November 22 at
09:00 EST.
-IE Staff
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