Goldcorp Inc. chairman Ian Telfer has reached a proposed settlement with staff of the Ontario Securities Commission involving allegations he acted contrary to the public interest in a share sale transaction.
The OSC said Tuesday it will hold a hearing Friday to consider a settlement agreement with Mr. Telfer. The commission did not reveal any terms of the settlement, which will not be made public until it is approved by a hearing panel.
Mr. Telfer was named as a small player in a much larger alleged insider-trading case that centred on a former executive assistant at brokerage firm GMP Securities. The assistant, Eda Marie Agueci, is accused of tipping friends and family members about takeover deals she learned about in her job at GMP. Ms. Agueci and others involved in the trading are accused of earning profits of $962,000.
Mr. Telfer was not accused of participating in the insider-trading activity. Instead, the OSC alleged he helped Ms. Agueci, who was a close friend for 20 years, buy shares of a company he was helping launch as a private share offering to a small group of investors. Ms. Agueci bought the shares in a private brokerage account set up in the name of her brother-in-law, and the OSC said Mr. Telfer should have known it was wrong to participate in a transaction “in which the beneficial owner of the shares was falsified.”
The OSC also said he should not have taught Ms. Agueci how to send BlackBerry PIN text messages that would not leave an e-mail trail that could be monitored by GMP compliance staff. The OSC said he should not have helped Ms. Agueci avoid disclosure obligations at the brokerage firm.
Mr. Telfer denied the allegations when they were levelled in February, 2012, and said there was nothing wrong with putting the shares in the private placement in an account under another name. He said such a move is not unusual and he was not trying to hide the shareholding.