Port Moody man hit with $40k penalty, three-year ban, over failure to produce records in securities investigation
Brandon Wade Boddy’s failure to turn over records stymied an investigation and hampered the B.C. Securities Commission’s ability to protect investors, according to a recent decision from the agency.
The commission was investigating Braxia Scientific, a Vancouver-based company formerly known as Champignon Brands. The now-defunct medical research company provided ketamine and psilocybin treatments for depression, according to a previous release.
The commission 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.
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On July 6, 2023, Boddy was personally served with a formal demand for records. Despite being granted numerous extensions, Boddy didn’t produce any records.
Investigators concluded Boddy’s records would further their case.
“From this we can infer, and do infer, that harm results,” the decision stated.
In deciding the penalty, which can range up to $1 million, the commission is required to consider the harm suffered by investors, the extent to which the culprit was enriched, future risks, deterrence, and damage to the integrity of capital markets in B.C., among other factors.
While there is no evidence Boddy was enriched by his misconduct or that he harmed investors, his failure to produce records: “undermines the commissions’ regulatory function,” according to the ruling.
Boddy doesn’t have a history of securities misconduct. The commission also didn’t find any: “deliberate dishonesty or bad faith.”
However, given both the significance and duration of the misconduct, the commission issued a three-year market prohibition.
The commission also fined Boddy $40,000, largely to: “send a message to Boddy and others that misconduct that impedes investigations will be dealt with strongly.”
The executive director had lobbied for a $50,000 penalty and a five-year market prohibition.
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