The Ontario Securities Commission (OSC) has reached a settlement agreement with Ian Telfer, chair of Canadian Goldcorp, who admits his conduct during a private share transaction was contrary to the public interest.
The Canadian mining magnate will be dinged $200,000 and is banned for a year from trading the securities of issuers for which he is a promoter.
"Your conduct fell below the standard required of you as a senior market participant and was contrary to the public interest," Christopher Portner of the OSC told Telfer during the settlement meeting.
Telfer admitted admitted to advising Ed Marie Agueci of GMP Securities to use instant messaging rather than email in discussing securities trading, and to telling Agueci not to purchase specific shares using her real name.
Telfer secretly told Agueci "to buy 500,000 shares of a shell company called 222 Pizza Express Corp," the Financial Post reports. The value of the shares jumped up from $5,000 to $500,000 "after the shell was converted into a large mining royalty firm called Gold Wheaton Gold Corp."
The Telfer case is being called "a sideshow" of a much larger insider trading probe involving Agueci.