On June 16, 2016, the Alberta Securities Commission concluded Settlement Agreements with three senior executives from Poseidon Concepts, an Alberta corporation. The executives held the positions of Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Poseidon.
Poseidon was created by Calgary junior producer Open Range Energy in November 2011 to develop and market its oilfield liquid storage systems that resembled gigantic above-ground swimming pools. In 2013, Poseidon disclosed that it had to restate its financial statements for the first nine months of 2012, eliminating between $95 million and $106 million of $148 million in total revenue it had previously reported for the period.
The former executives concluded Settlement Agreements with the ASC in which they admitted to breaching Alberta securities laws by filing financial statements that overstated Poseidon's revenue and accounts receivable. Among other things, the executives admitted that they authorized, permitted, or acquiesced in Poseidon failing to file its interim financial statement for the third quarter of 2012 in accordance with Canadian Generally Accepted Accounting Principles. The former executives agreed to pay a total of $375,000 and they have agreed to not act as directors or officers of any reporting issuers for a number of years.
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