Calgary Man Settles Oil and Gas Insider Trading Case with $65,000 Fine

A Calgary man has agreed to pay $65,000 as part of a settlement in an oil and gas insider trading case.

The Alberta Securities Commission says Colton Kenneth Smith breached provincial securities laws by purchasing shares in i3 Energy plc after receiving non-public information from a former colleague, Russell Ingram.

Smith worked as an engineer-in-training at i3 Energy Canada Ltd., a subsidiary of the publicly traded company, from September 2020 until November 2023. After leaving the company, he remained friends with Ingram and learned confidential information about i3's involvement in an ongoing sale process during several social meetings between May 30 and August 14, 2024.

The commission says Smith knew Ingram continued to work for i3 Canada and that the information had not been publicly disclosed. He purchased i3 shares before the acquisition was announced publicly on August 19, 2024. The company's share price increased following the announcement, with an estimated potential profit of approximately $29,633.

Under the settlement agreement, Smith will pay $65,000 to the commission, including investigation costs. He is also prohibited from trading in or purchasing securities and derivatives for five years, subject to limited exceptions. Cynthia Campbell, the commission's director of enforcement, said restrictions on trading confidential information apply beyond company executives and employees.