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SEC defendant Kostelecky to remain imprisoned

2023-01-23 20:35 ET - Street Wire

Also Street Wire (C-PSN) Poseidon Concepts Corp

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by Mike Caswell

The United States Court of Appeals for the Eighth Circuit has denied a release request brought by Joseph Kostelecky, the North Dakota man jailed for an accounting fraud that led to the demise of Toronto Stock Exchange listing Poseidon Concepts Corp. in 2013. Mr. Kostelecky, who is serving three years in prison, had sought release on health grounds. Among other things, he contended that cancer and a heart condition made him eligible for early release.

The loss for Mr. Kostelecky, 61, is contained in a judgment filed on Jan. 18, 2023. The three-sentence document simply states that the appeal court has upheld a decision that keeps Mr. Kostelecky imprisoned. The denial was one issued summarily, or without a full hearing.

As is often the case, the appeal judges did not issue any reasons. The judges undoubtedly considered the position of prosecutors, who previously said that Mr. Kostelecky's crimes called for him to remain in prison. He perpetrated an extensive fraud that included lying about his credentials, fraudulently directing subordinates to record fictitious revenue and forging documents, among other things. Prosecutors also pointed out that the Bureau of Prisons had evaluated Mr. Kostelecky and determined that he did not meet the requirements for early release.

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