Allied Nevada shareholder wants investigation into insider trading

By Mark Reccek

Bethlehem, Pa., Aug. 11 – Allied Nevada Gold Corp. shareholder Brian Tuttle requested an examiner to investigate trading records for possible insider trading, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

According to Tuesday’s motion, an investigation is imperative as “certain noteholders have been trading notes, possibly in the open market and certainly with insider information.”

Further, the shareholder requests an examination into the trading records of equity securities for insider trader and stock manipulation.

The motion argues there are currently 80 to 90 million shares of the company’s equity unaccounted for.

“A proper examination of the trading records needs to be undertaken to establish a record of who is holding positions in the debtors’ equity securities,” the motion said.

Additionally, the motion requests examinations into the company’s liquidity issues, off balance sheet credit default swaps and gold fix and currency manipulation of creditors; the December 2014 public offering; communication between the company’s advisers and attorneys, and funds trading in the company’s equity securities and notes; the company’s financial statements and evaluations for evidence of fraudulent conveyance; and the company’s current and former management for any fraud, dishonesty, incompetence or irregularity in the affairs of the company.

Allied Nevada is a Reno, Nev.-based gold and silver miner that filed for bankruptcy on March 10. Its Chapter 11 case number is 15-10503.

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