Goldcorp Inc. (G) Chairman Ian Telfer agreed to pay C$200,000 ($194,000) in costs and will be banned from arranging for people to buy shares in companies he promotes for one year in a settlement over allegations that he violated Canadian securities laws.
Telfer admitted his conduct fell below standards expected from his position in capital markets, Cullen Price, a lawyer representing Ontario Securities Commission staff, said at a hearing today in Toronto. Telfer was reprimanded by the OSC as part of the settlement and will make the payment to cover the cost of the investigation, Price said.
“Senior capital market participants like Mr. Telfer have the responsibility to protect the integrity of the capital markets,” Price said at the hearing. “Mr. Telfer failed to live up to the standard expected of him.”
The settlement is reasonable and appropriate, said Telfer’s lawyer Kevin Richard.
The sanctions don’t include a prohibition on acting as a director and officer of a public company, which was among the potential penalties Telfer faced. The ban wasn’t necessary to protect the public interest, “given the narrow nature of the misconduct,” Price said.
Telfer, 67, was included in an OSC statement of allegations in February 2012 regarding an alleged insider-trading scheme involving at least eight people. The OSC alleged he acted “contrary to the public interest.” Telfer, who is also chairman of Uranium One Inc. (UUU), had previously denied any wrongdoing.
A large part of the OSC’s allegations against Telfer were related to his practice of adding friends and family to private stock placements for his startup companies. The so-called president’s lists would often include acquaintances at brokerage and investment banks and their relatives.
Telfer has agreed not to directly or indirectly trade or arrange for trading by others in securities of companies that he promotes for one year, according to a copy of the settlement provided by the OSC. Telfer isn’t currently a promoter of any public company in Canada, it said.
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