VANCOUVER, July 31, 2013 /CNW/ - The executive director of the British
Columbia Securities Commission has issued a notice of hearing alleging
that a former consulting geologist tipped his wife and they engaged in
The notice alleges that while Robert Frederick Weicker was in a special
relationship with Geo Minerals Ltd. (he had signed a contract to be the
consulting geologist in October 2010), he informed his wife, Amina
Umutoni Weicker, of material information that had not been generally
disclosed regarding the acquisition of that company. BCSC staff
contends that Amina then used this information to purchase securities
of Geo Minerals.
Geo Minerals was a junior mining mineral exploration company
headquartered in Vancouver with a listing on the TSX Venture Exchange
(TSX-V). Both Robert and Amina Weicker are residents of Port Coquitlam,
The notice states that in June 2011, New Gold Inc., a Toronto-based
company listed on the Toronto Stock Exchange (TSX), contacted Geo
Minerals to express its interest in acquiring one of Geo Mineral's
properties. On July 28, 2011, Robert and representatives from New Gold
and Geo Minerals met to discuss the potential deal. Throughout August
and early September, Robert was involved with the negotiations between
Geo Minerals and New Gold, which progressed from a single property deal
to a company buy-out.
On Friday, September 9, 2011, Robert received an e-mail message from the
Geo Minerals CEO stating that New Gold's board would likely approve a
$0.15 bid. On Monday, September 12, Amina transferred $60,500 into her
self-directed, on-line trading account from joint accounts controlled
by the Weickers. Amina began trading Geo Minerals shares through her
trading account, purchasing a total of 585,900 shares on September 12
On September 16, New Gold provided Geo Minerals with a non-binding
expression of interest to acquire all of Geo Minerals. That day, the
Geo Minerals CEO emailed Robert: "We have something in writing. The
eagle is landing!!".
On September 21 and October 11, Amina transferred a further $37,900 into
her trading account. In total, between September 12 and October 11,
Amina purchased 729,945 Geo Minerals shares at an average cost of
$0.105 cents per share. The Geo Minerals shares were the only
securities purchased or sold in Amina's trading account during this
On October 17, New Gold and Geo Minerals publicly announced that they
had entered into an agreement, whereby New Gold would acquire 100% of
the outstanding common shares of Geo Minerals. Following the
announcement, the price of Geo Minerals shares increased 33% from $0.12
On December 7, Amina liquidated her position in Geo Minerals shares for
proceeds of $116,781.21 ($0.16 cents per share), representing a profit
of $40,132.67. Then, on December 16, Amina deposited the funds from the
trading account into one of the Weicker's joint accounts
BCSC staff alleges that both Robert and Amina Weicker breached
securities laws by using material information that had not been
generally disclosed to purchase and trade securities.
The notice also references Robert's prior misconduct and disciplinary
history, including a settlement agreement with the BCSC for issuing
misleading news releases that failed to disclose material facts, and a
guilty plea in provincial court to tax evasion.
These allegations have not been proven. Counsel for the executive
director will apply to set dates for a hearing into the allegations
before a panel of commissioners on September 17, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Robert Frederick Weicker, Amina Umutoni Weicker or 2013
BCSECCOM 74 in the search box. Information regarding disciplinary
proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial
securities regulators, the Investment Industry Regulatory Organization
of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org.
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713.
For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).