Port Moody man liable for failing to comply with securities probe, BCSC finds

A Port Moody man has been found liable by the British Columbia Securities Commission for failing to produce records tied to a major investigation into the former psychedelic pharmaceutical company.

In a May 11 decision, a three-member commission panel ruled that Brandon Wade Boddy failed to comply with a demand issued under the province’s Securities Act during an ongoing probe into Braxia Scientific, a Vancouver-based company formerly known as Champignon Brands. The medical research company provided ketamine and psilocybin treatments for depression, according to a previous release.

The panel found Boddy violated the Act by failing to produce records “reasonably required” for the investigation and concluded his conduct amounted to obstruction of justice under provincial securities laws.

“Despite commission staff agreeing to extend the deadline four times, Boddy has never provided any records to commission staff,” the decision stated. “We can draw an inference from Boddy’s silence on this . . . that he must have had at least one document responsive to the demand.”

The investigation dates back to May 2022, when the commission ordered enforcement staff to investigate trading activity involving Champignon securities, the marketing and promotion of the company’s shares, and the “accuracy and sufficiency” of the company’s disclosure to investors.

Champignon – later renamed Braxia Scientific – was one of several Canadian companies that surged during the pandemic-era boom in psychedelic medicine and mental health investments.

According to the ruling, Boddy and his company, 1061437 BC Ltd., were believed by investigators to have acted as consultants for Champignon. The commission also alleged Boddy, directly or through companies under his control, held shares in companies acquired by Champignon and traded Champignon stock during the period under investigation.

On July 6, 2023, Boddy was personally served with both a formal demand for records and a summons to attend an interview under oath with commission investigators.

The demand required him to produce records by July 28, 2023, including correspondence, consulting agreements, and documents related to acquisitions involving Champignon and several companies it purchased between March and April 2020, including Artisan Growers Ltd., Novo Formulations Ltd., Tassili Life Sciences Corp., and AltMed Capital Corp.

The commission said investigators granted multiple deadline extensions after discussions with Boddy’s counsel, eventually extending the deadline into November 2023.

Court documents show Boddy’s lawyers provided medical documentation indicating he was dealing with health issues and suggested investigators revisit the matter months later.

But the panel said investigators repeatedly offered accommodations and received no meaningful response. The commission noted Boddy never claimed he had no related records in his possession, something the panel said weighed heavily in its conclusions.

Commissioners ultimately concluded it was “reasonable to infer” Boddy possessed relevant records because of his alleged role as both a consultant and shareholder connected to Champignon transactions.

The panel found Boddy liable under three sections of the Securities Act for failing to comply. However, the panel did not find him liable for refusing to testify under oath.

While investigators attempted to reschedule a compelled interview multiple times, commissioners ruled a later letter proposing a new interview date did not legally compel Boddy to attend because it was framed as a request rather than a formal summons.

The hearing itself proceeded largely in writing after earlier adjournments requested by Boddy.

The ruling notes Boddy’s lawyer later withdrew from the case, and Boddy ultimately did not provide evidence, cross-examine investigators, or submit arguments in response to the commission’s allegations.

The sanctions phase is now scheduled to proceed through June and July, with the commission expected to determine what penalties, if any, should be imposed.

Under the Securities Act, administrative penalties for failing to comply with investigative demands can reach up to $1 million.