CALGARY — Alberta's securities regulator has ruled that the former president and CEO of nickel and cobalt miner Liberty Mines Inc. (TSX:LBE) committed insider trading after he was dismissed by its board of directors.
The Alberta Securities Commission said late Monday that a panel found Richard Gary Nash had insider knowledge when he sold 1.2 million shares following his departure from the company's board and management team in 2010.
The ASC said Nash traded the shares on Nov. 10, a day after his dismissal, but before the information was known to the public — avoiding a loss of about $22,000.
The ASC panel found that "frustration and anger at his dismissal motivated him to sell," but in doing so he broke Alberta securities laws.
"Nash engaged — misguidedly and imprudently — in a highly emotional response (quickly ridding himself of Liberty Shares) to a very difficult personal situation," the panel said.
It also found that the company contributed to the events due to its lack of diligence in halting the shares or issuing a press release more quickly.
The ASC has had Nash sign an agreement that he will comply with all Alberta securities laws in the future.
