New Gold Inc. (
TSX:T.NGD,
Stock Forum) executive chairman Randall Oliphant has been named chairman of the World Gold Council, succeeding Ian Telfer, the chairman of Goldcorp (
TSX:T.G,
Stock Forum) who has been embroiled in an
insider trading scandal.
In a statement, Oliphant said, "I am taking on the role at a time when gold has a wider significance than ever before across the world. From investments and capital markets, to the rise of the eastern consumer, gold is at the heart of many societies as they seek to store and protect their wealth. The World Gold Council has been in the vanguard of developing innovative uses for gold, and it is a privilege to accept this role.”
According to a statement, “The World Gold Council is the market development organization for the gold industry. Significant initiatives spearheaded by the World Gold Council include the publication of the Conflict-Free Gold Standard and the guidance notes on All-In Costs.”
Before stepping down, Telfer settled a case with the Ontario Securities Commission and agreed to pay $200,000 in investigation costs when he was found to have provided assistance to a long-time friend, who is alleged to have been a central figure in an illicit trading scheme involving shares of several companies, including a predecessor of Gold Wheaton Gold Corp.
Under the settlement agreement with the OSC, Telfer said he advised Eda Marie Agueci in January 2008 on how to use her BlackBerry to send messages that couldn't be monitored by her employer, GMP Securities, an investment dealer with access to insider information.
Telfer also provided Agueci the opportunity to buy 500,000 common shares of 222 Pizza Express Corp. in April 2008, and advised her they shouldn't be purchased in her own name. The company then went through reorganization and became Kadywood Capital Corp. and then Gold Wheaton.
The OSC alleges Agueci's brother-in-law bought the shares for $5,000 and that they ultimately yielded a return of more than $500,000.
Predictably, Oliphant made no public comment on the outgoing World Gold Council chairman, but did say, "I'm extremely proud of the industry and the work of the World Gold Council. […] I look forward to working with our members to continue building awareness and understanding of the contribution gold makes to society.”