January 13, 2016 - 2:30 PM
KELOWNA - A Kelowna man has been fined and sanctioned by the B.C. Securities Commission for illegally distributing securities for an unlicensed mining company to four B.C. residents between 2009 and 2012.
A commission panel determined last October that Rodney John Snider sold $21,000 in notes for Flag Resources, an Alberta mining company the TSX Venture Exchange de-listed for failing to maintain exchange-listing requirements. The commission issued a cease trade order against Flag in 2006 for failing to file financial records.
Despite this, Snider lent money to Flag in 2008 and then convinced four B.C. residents to also invest between January 2009 and May 2012.
"The evidence is undisputed that Snider was attempting to identify investors whom he could refer to McLeod and Flag with a view to those investors investing in Flag,” the panel says in the release. “Snider did identify the four investors in question, referred them to (the now deceased director of Flag) and provided those investors with information about Flag's assets."
Snider admitted to showing investors reports on Flag’s assets, maps, core samples and pictures of its properties. He also had business cards with Flag’s name and logo.
Snider was ordered to pay a fine of $5,000 and is prohibited from trading or purchasing securities for three years. He is also prohibited from promoting or engaging in investor relations activities for the same period of time.
“(Snider’s) conduct was either careless or reckless or both with respect to compliance with securities laws,” the commission said in their release issued Jan. 12, 2016.
Flag has not been allowed to resume trading and none of the investors received any of their money back.
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News from © InfoTel News Ltd, 2016