Westhaven Gold Corp. (TSX-V:WHN) has suspended its CFO, Shaun Pollard, two days after and granted bail for alleged violations of B.C.'s Securities Act.
Crown counsel allege that Pollard was involved in the crime of tipping, or being in a special relationship with an issuer and informing another person of material non-public information. The second charge that has been approved by the Crown is for recommending someone trade securities while knowing an undisclosed material fact.
The charges have not been proven in court.
At a bail hearing, Pollard was released on $4,000 bail with some conditions. His next court appearance is scheduled for Oct. 7 at 9 a.m.
Pollard's suspension from Westhaven is "pending the outcome of the charges," according to the company, which has appointed Zara Boldt to act as CFO in an interim capacity.
BIV emailed Westhaven's CEO Gareth Thomas to say whether Pollard will be paid during the suspension but did not get an immediate reply back.
The charges follow an investigation by the British Columbia Securities Commission's (BCSC) criminal investigations branch. The BCSC noted in a press release that it would like to thank the Vancouver Police Department for help with the investigation.
The offences allegedly took place between Sept. 1, 2018, and Oct. 31, 2018, the BCSC said.
Sept. 1, 2018, was a Saturday. On the Tuesday, Sept. 4, following Labour Day that year, Westhaven’s shares closed at $0.18. By Oct. 31, 2018, the company’s shares had risen to close at $1.07, down from an intraday high of $1.34. Trading volume also spiked during this timeframe.
In September and October 2018, Westhaven released eight press releases, including several with drill results and one that was about a strategic alliance.
