The Globe and Mail reports in its Wednesday edition Alberta regulators have accused a former employee of Pembina Pipeline of illegal insider trading, alleging she advised her husband to buy shares of Provident Energy Ltd. after she learned her employer was considering a takeover bid for the gas company.
The Globe's Janet McFarland writes the Alberta Securities Commission alleges Sherry Hagerty learned about a possible Pembina bid for Provident in December, 2011, and told her husband, Gary Hagerty, about the deal. At the time, the ASC said Ms. Hagerty was Pembina's corporate risk manager while her husband worked on contract for the company.
The regulator alleges Mr. Hagerty bought 5,000 shares of Provident the following day. After the takeover bid was announced publicly in early 2012, the regulator said Mr. Hagerty sold the shares for a profit of $9,942. The ASC has accused the couple of breaching insider trading rules. They are also accused of making untrue statements to ASC investigators. The regulator said Ms. Hagerty first learned of the deal "informally or otherwise" on Dec. 22, 2011, which was the same day that a Pembina special committee authorized a revised takeover proposal be presented to Provident.
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