A B.C. man has been fined $40,000 and banned from participating in financial markets for three years over his failure to co-operate with an investigation by the B.C. Securities Commission. Brandon Wade Boddy was granted “numerous extensions” to a deadline imposed by commission investigators for the production of documents related to the investigation, but he failed to provide the documents demanded, according to a sanctions decision published on the BCSC website Tuesday. Few details are available about the underlying investigation. A previous decision on liability says only that the investigation began in May 2022 and involved “the trading in Braxia Scientific Corp.” securities, as well as the marketing and promotion thereof and “the accuracy and sufficiency” of the company’s disclosures. Braxia was formerly known as Champignon Brands Inc., according to the liability decision. Boddy, a Port Moody resident, allegedly acted as a consultant for Champignon through his numbered company, was a shareholder of companies acquired by Champignon and traded Champignon shares during the relevant period. The documents the commission’s investigators demanded from Boddy included correspondence and documents related to consulting work and share acquisition between August 2019 and June 2020. A panel of the BCSC found in the liability decision that Boddy had failed to comply with the demand and failed to produce records reasonably required for an investigation, both violations of the provincial Securities Act. In its sanctions decision, the panel found that Boddy’s failure to produce the documents “undermines the Commission’s regulatory function.” “The failure to respond to regulatory demands thus impeding investigations poses a significant risk to our capital markets,” the decision reads. “Given the long period of non-compliance by Boddy in the face of many extensions, we do not have confidence that he would abide by our securities laws in the future.” Boddy has no history of securities-related misconduct and there is no evidence that he has been enriched by his withholding of documents, according to the decision. However, the panel did conclude that Boddy’s actions may cause harm to investors, even in the absence of documented “direct or specific” harm. “Investigators have discretion in how they conduct investigations and the investigator in this case concluded that obtaining evidence from Boddy would be useful to the investigation,” the decision reads. “From this we can infer, and do infer, that harm results. Even if it eventually emerges that Boddy has very limited information of value to investigators, until Boddy’s knowledge is explored, the investigative process is frustrated and the ability of the commission to protect investors is reduced.” The panel imposed a $40,000 administrative penalty on Boddy and banned him from being a registrant, engaging in promotional activities, acting in any management role, and trading securities except in his own account through a registered representative. The ban will be in place for three years or until the $40,000 is paid, whichever is longer, according to the decision. Boddy did not participate in the sanctions hearing.
