November 03, 2015 - 2:30 PM
KELOWNA - A Kelowna man is facing sanctions from the B.C. Securities Commission for assisting in the sale of $21,000 in promissory notes for an unlicenced Alberta mining company to four B.C. residents.
A commission panel determined that Rodney John Snider referred investors to Murdo Campbell McLeod, a former director of Flag Resources who is now deceased. The Commission found the sale of securities to these investors to be illegal and in breach of securities laws, according to a release.
Flag Resources is an Alberta-incorporated mining company the TSX Venture Exchange de-listed for failing to failing to maintain exchange-listing requirements. In 2006, the BCSC issued a cease trade order against Flag for failing to file financial records.
Snider lent money to Flag in 2008 and between January 2009 and May 2012 convinced four acquaintances to also invest with McLeod.
"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 McLeod 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.
Flag has not been allowed to resume trading and none of the investors received any of their money back.
A panel will review the findings and determine punishment at a later date.
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News from © InfoTel News Ltd, 2015