Petro Rio S.A. HRTPF

CVM accuses HRT executives from trading before material fact

[Rzbern]

HRT : CVM accuses executives from trading before material facts in 2012 

(Valor Econômico) Economic Value - 04/25/2014 

The Securities Commission ( CVM ) investigates administrators HRT for allegedly trading the company in 2012 before the disclosure of material facts . The accused are Márcio Mello , founder and then president of the board ; Milton Franke , acting director ; and Eduardo de Freitas Teixeira , as a board member of the company at the time . 

The relevant facts that led to the indictment were released in May 2012. 23rd , was informed agreement for hiring the Transocean Marianas semisubmersible rig for drilling wells HRT in Namibia , with the signing of a binding letter of final signature and prediction of the contract in 15 days. On the eve of publication , the 22th, Mello bought R$1.000.000,00 (1 million) in shares of HRT ; Milton Franke R$121.600,00 and Eduardo de Freitas Teixeira R$304.700,00. 

The defendants argued that the information the hiring probe would have knowledge of the market , as was decided in the board meeting , the minutes of which was released on May 9 . But the CVM assessed that the market does not know what the date on which the letter would be signed binding . In addition , the company itself disclosed the information through a material fact , which settles the argument that the information would already be public . 

The defendants also claimed that the purchases made to signal to the market their confidence in the company and not for obtaining advantage , but the CVM believes that shopping should have been done after the disclosure of the material fact . 

The other relevant fact , on May 25 , announced the approval in the annual general meeting held on April 27, 2012 , the stock split of the company. 

Regarding this point, the investigation is just Franke , who claimed that the information was already public since appeared in the minutes of the meeting published by HRT . But the CVM notes that the company disclosed a material fact to inform the ex-date split came to be May 29 and not May 28 , as gave the impression the minutes of the meeting. According to the report made by the Superintendent of Market Relations and Intermediates ( SMI ) of the municipality , Franke mentioned , taken in connection with Itaú Brokerage to request the purchase of shares , the high probability of roles because of the split scheduled for 29 May and issue of material fact . On the day of publication, HRT share rose 8 % . 

They were charged for breach of Article 13 of CVM Instruction 358 , which is the seal of trading of shares by directors before the disclosure of material facts , combined with Article 155 paragraph 1 of Law 6.404/76 , which deals with the duty of loyalty Administrator . 

Because of evidence of trading with insider trading , the technical area of CVM recommends to the President the authority , Leonardo Pereira , the Federal Prosecutor is informed . 

The process was still investigating José Carlos Araújo Pedrosa , executive manager of HRT . He was investigated for having bought shares before the disclosure of other material fact , in May 21, 2012 , the company announced the completion of training 1 -HRT - 6 am, in the Solimões Basin well testing . 

However , the investigation concluded that he did not work directly in the company and could not prove that he had had prior access to information.

[buggati]

This is just the tip of the iceberg. These crooks ran hrt for their own benefit and made big bucks while investors lost everything. Like I posted before, HRT was a huge scam from the beginning, over hyped garbage that was a $.15 stock that got inflated to $10 and then crashed and burned when reality set in.

[NorthSun]

This post has been removed in accordance with Community Policy

[grover11]

absolutely brutal display.. what a mess

[robnhood]

If anything I would have to say that MM's sale of 1 million HRTPY two days before announcing a dry hole off Namibia was for absolute sure an informed sale. After all, wasn't he the guy that was absolutely positive that Namibia held untold riches in oil. There is only one reason he would dump a bunch of stock two days before results were made public.

[aresoilventures]

???? Same article or additional info (if latter, please provide link). The article in this tread states that MM bought R$1 million worth of shares when HRT was about to announce the hiring of the Transocean Marianas (i.e. expecting the share price to go up... as it did). Assuming he sold for quite a profit thereafter... so it is clear cut insider trading... but I did not see anything related to

[robnhood]

Don't have a link. I just remember it. Probably out there somewhere. The trades were on Canadian insider, but the free info does not go back that far.

[Rzbern]

You are right, robnhood. This information was on canadianinsider.com, but now is not possible accessible. I think i have a image print of my monitor computer. I will seek.

[NorthSun]

This post has been removed in accordance with Community Policy

[Rzbern]

Northsun0,JG had arbitration against the Discovery it was to force Discovery to perform takeover . If JG would accepted the idea takeover bid was a sign that would be satisfied with trading between its input price and alleged takeover of Discovery and not the good up developing the company . They made an agreement between the JG and Discovery , but what is this agreement? It was good for whom? The

[buggati]

Hood, the bad news just keeps coming..this garbage could easily go to $.05..of course we knew this was going on..the volume would always spike 2 days before announcement of a dry hole

[robnhood]

Bug,, It's kind of interesting that long time holder of HRT, Gusmaran, dumped his stock, a couple of days later Discovery dumps their stock, and a  couple of days later the stock goes into free fall. It would definitely make a paranoid trader like me think that there is some news that only a few people know about.