08:03:22 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Post says ASC, SEC accuse Poseidon executives of fraud

2015-02-09 09:18 ET - In the News

See In the News (C-*ASC) Alberta Securities Commission

The Financial Post reports in its Saturday edition a once-promising oil-field-services company grossly overstated its revenues and one of its executives perpetrated an accounting fraud, alleged the Alberta Securities Commission and the U.S. Securities and Exchange Commission on Friday. The Post's Geoffrey Morgan writes after a joint investigation with the SEC, the ASC released a statement alleging that Poseidon Concepts, which was formed in 2011 to rent fluid-storage tanks to oil and gas companies, released statements where the company falsely reported $106-million in its revenue. The ASC said Poseidon's chief executive officer, chief financial officer, chief operating officer and executive vice-president were all involved, either causing, permitting, authorizing or acquiescing to the incorrect financial statements. Included is an allegation of $102-million in unjustified accounts payable. Regulators alleged that executive vice-president Joseph Kostelecky, who was in charge of the U.S. accounting at its Denver office, directed junior accounting staff to book revenues without signed contracts, and otherwise failed to properly maintain the company's books. Mr. Kostelecky has already settled with the SEC.

© 2024 Canjex Publishing Ltd. All rights reserved.