Goldcorp Inc : CORRECT :Ontario Regulator Names Goldcorp Chairman In Connection With Insider-Trading Probe
02/07/2012| 06:49pm US/Eastern
("OSC Names Goldcorp Chairman In Connection With Insider-Trading Probe," at 5:32 pm EST and updated at 5:42 EST p.m., misstated the payment paid to Eda Marie Agueci in the seventh paragraph. The correct version follows:)
By Ben Dummett
The Ontario Securities Commission on Tuesday named Ian Telfer, chairman of large-capitalization gold miner Goldcorp Inc. (G.T, GG), in connection with an alleged illegal insider-trading scheme.
The OSC, Canada's largest securities regulator, said that Telfer didn't participate directly in the alleged scheme, which the agency alleged took place between April 2007 and February 2008. But the agency alleged he helped others carry out activity related to the scheme, including hiding the beneficial ownership of some of the stock traded during the period.
In a statement, Telfer said he "categorically denied" the OSC allegations.
The alleged insider trading generated profits of C$962,000 (US$962,000) the OSC said in its statement of claim.
The probe comes as the OSC has stepped up efforts to clamp down on illegal activity in Canada's capital markets. At the same time, securities regulators in the U.S. have pursued a raft of high-profile insider-trading cases.
The OSC, in its statement of allegations, claims Eda Marie Agueci was the central figure behind the illegal activity. Agueci was employed as an executive assistant to the chairman of GMP Capital Inc. (GMP.T, GMPXF), a Toronto-based dealer, and the firm's mining-investment bank group.
The commission alleges that Agueci passed on nonpublic information on pending corporate deals to others, including relatives, allowing them to trade the relevant stocks to generate profits. In return, these people would pay Agueci for the information. Agueci received payments totaling C$25,000, the OSC alleged.
The commission also alleges Agueci bought securities, using insider information, in her own account and in the name of her mother.
The OSC alleges Telfer helped Agueci disguise ownership of certain securities, and circumvent GMP from monitoring Agueci's communications and trading.
A GMP spokesman wasn't immediately available for comment. A Goldcorp spokeswoman couldn't immediately be reached.
-By Ben Dummett; Dow Jones Newswires; 416-306-2024; firstname.lastname@example.org