David Baines (Vancouver Sun) – Former RCMP commercial crime section officer Edward Gallagher has been sentenced to one year in jail after he pleaded guilty to stealing $444,200 worth of shares from Global Cogenix Industrial Corp., formerly listed on the Vancouver Stock Exchange.
The offences occurred between May 1997 and February 1999, when Gallagher was serving as the company’s president. A co-accused, Erwin Liem, who served as chief financial officer, pleaded guilty last year to three counts of theft and was sentenced to nine months, to be served in the community. (Liem pleaded guilty prior to trial; Gallagher waited until 15 days into his trial before he threw in the towel.)
In her decision released Friday, Vancouver Provincial Court Judge Maria Francesca Giardini said Gallagher arranged for shares to be issued to him and certified that he had paid cash for those shares. In fact, he simply offset the purchase price with debts that were purportedly owed to him by the company for management and consulting services, but had not been authorized by VSE officials and in some cases had not been provided.
Although he illegally acquired $444,200 worth of shares, his net trading profit was just under $35,000, which was cited as a mitigating factor. Gallagher was initially charged by RCMP in September 2000, but the Crown stayed those shares in May 2002 pending a broader investigation into both Gallagher and Liem. New charges were laid against both in July 2006.
Gallagher was a long-time RCMP member. After serving with the commercial crime section, he was transferred to the Burnaby detachment before retiring as a sergeant in 1985. While awaiting trial, Gallagher continued to engage dubious stock market activities.
In March 2007, I noted in a column that he was serving as president of PeopleLine Telecom Inc., which traded on the lowly Pink Sheets in the United States and was being hyped by spam. “Trading at around 25 cents with astounding news on the way, this is one play you can’t afford to miss! The upcoming news and promotion is going to see this one at around $1.00 in no time!” exclaimed one email.
Gallagher blamed a U.S. investor relations firm he hired earlier this month. He also claimed he had filed a complaint with the U.S. Securities and Exchange Commission.
What cover up? If you are talking about YVR, Mr. Braidwood found that there was no cover up. Are you suggesting there is a cover up in the hospital incident or the long retired RCMP officer named above? Its always a reference to a “former RCMP member” even if its been 25 years since the person was employed by the organization. I really do not see the point of providing previous employment, as if it makes a difference to the story if someone was a carpenter or whatever.
Hot debate. What do you think?
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I must of read things wrong… sorry
Hot debate. What do you think?
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Well what do you think should happen?
If someone goes out and buys a stun gun and uses it improperly should he/she not be charged just the same as a gun was drawn and deployed, especially after people were dying? Speaking of dying it seems things have settled down across Canada now that there’s the accountability issue to think about.
Instead of what the people think about these incidents and the rush to cover things up, why don’t you all just do your jobs?
After all it seems the book of law, the Criminal Code of Canada was written to protect all citizens, not just some, was it not?
I think the hospital was a bit much, Robert at the airport was another and the old man delivering the newspapers out west was too.
Make things right not just for the police officers and the people will again have confidence in your leadership, this maybe a start in the right direction.
Hot debate. What do you think?
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