Regulators in British Columbia are accusing a former geologist of tipping his wife to inside information about a pending takeover, and that they then engaged in improper insider trading on that information.

In a notice issued Wednesday, the B.C. Securities Commission (BCSC) alleges that Robert Frederick Weicker was in a special relationship with junior mining firm, Geo Minerals Ltd., when he gave his wife, Amina Umutoni Weicker, material information that had not been generally disclosed regarding the potential acquisition of the company. It alleges that Amina then bought securities of Geo Minerals, anticipating a takeover. The allegations have not been proven.

According to the BCSC, Weicker signed a contract to be a consulting geologist to the company in October 2010. It says that in June 2011, New Gold Inc., contacted Geo Minerals to express its interest in acquiring one of its properties, and that in July 2011, representatives from New Gold and Geo Minerals, including Weicker, met to discuss the potential deal. It says he was then involved in discussions, which progressed from a single property deal to an outright takeover. And, it says that on Sept. 9, he learned from the Geo Minerals CEO that New Gold’s board would likely approve a 15¢ per share bid for the firm.

In the following days, the BCSC alleges, Amina purchased 729,945 Geo Minerals shares at an average cost of 10.5¢ per share. And, on Oct. 17, a deal between the firms was publicly announced. Following the announcement, the price of Geo Minerals shares increased 33% from 12¢ to 16¢, it says. The regulator reports that on Dec. 7, Amina liquidated her position at 16¢ per share, generating a profit of $40,132.67. As a result, BCSC staff alleges that the couple breached securities laws by using material information that had not been generally disclosed to purchase and trade securities.

On Sept. 17, counsel for the BCSC will apply to set dates for a hearing into the allegations before a panel of commissioners.