Feeds

Corel chief charged with insider dealing

Cowpland fights to clear his name after offloading shares

  • alert
  • submit to reddit

High performance access to file storage

Corel saw its CEO Michael Cowpland charged with insider dealing yesterday. The Ontario Securities Commission (OSC) charged the head of the Canadian software vendor with three counts of violating the Securities Act. It also laid one count against Cowpland's personal holding company, MCJC Holdings. Cowpland will be in the dock at the Ontario Court of Justice on 22 November, and if found guilty faces porridge or a hefty pay out. The maximum penalty is two years in jail, a C$1 million (£604,780) fine and three times any profits made from the dealings. Cowpland is charged with acting on information not available to the public. Part of his predicament springs from him selling a third of his Corel shares in 1997 for C$20.5 million, weeks before the company's $32 million third quarter loss report sent its share price plummeting by 40 per cent. Trading in Corel shares was halted on Nasdaq and the Toronto Stock Exchange before the announcement. Stock will resume trading today, though is expected to take a beating. Cowpland denied he had violated securities laws, saying he had offloaded the shares to pay off personal loans. "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," he said. Analysts said the charges may prompt a call for Cowpland's resignation from Corel. But the charges will not be easy to prove. Duncan Stewart, fund manager at Tera Capital in Toronto, said: "Making the allegations is easy, proving them is, in all cases, unless people are genuine dunderheads, almost impossible. "Very few people write memos to themselves saying: 'Did insider trading today' and then mail them to the OSC." ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.