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by Mike Caswell

The Ontario Securities Commission has linked Goldcorp Inc. chairman Ian Telfer to an insider trading ring that the regulator claims netted $962,000 in illegal profits in 2007 and 2008. In a statement of allegations released on Tuesday, Feb. 7, the OSC says that Mr. Telfer provided advice to a former GMP Securities LP secretary on how to hide communications and disguise share ownership. He also helped her buy 500,000 shares in 222 Pizza Express Corp. that were later worth $500,000.

The allegations against Mr. Telfer are part of an insider trading case against Eda Agueci, the former executive assistant to the chairman at GMP Securities. The regulator claims that she learned ahead of time about takeovers and other as-yet unannounced deals for several companies and used the information to secretly buy the stocks. She also tipped friends and relatives, including four who worked at other brokerage firms.

Mr. Telfer did not have any direct role in the insider trading, but according to the OSC he was close friends with Ms. Agueci and on one occasion offered her cheap stock that later substantially rose in value. That purchase, as described in the statement of allegations, took place in April, 2008, when he gave her the opportunity to secretly buy 500,000 shares in 222 Pizza in a private offering. He was very optimistic about the prospects for the company, the OSC says.

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