Decisions

MERVIN MICHAEL BODNARCHUK [Decision]

BCSECCOM #:
Document Type:
Decision
Published Date:
1997-07-11
Effective Date:
1997-07-04
Details:


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND

IN THE MATTER OF MERVIN MICHAEL BODNARCHUK


HEARING


PANEL: JOYCE C. MAYKUT, Q.C. VICE CHAIR
ADRIENNE R. WANSTALL MEMBER
DIANE K. WOLCH MEMBER


DATE: JUNE 24, 1997


APPEARING: STEPHEN ZOLNAY FOR COMMISSION STAFF

DANA PRINCE FOR MERVIN M. BODNARCHUK


DECISION OF THE COMMISSION

WHEREAS further to a notice of a hearing dated March 20, 1997, a hearing was held under section 161(1) of the Securities Act, R.S.B.C. 1996, c. 418;

AND WHEREAS at the hearing evidence was produced upon which we make the following findings:

1. Magic International Rammer Ventures Inc. was incorporated under the Company Act, R.S.B.C. 1996, c. 62 on October 21, 1986;

2. Majik Rent-A-Car (Canada) Inc. was federally incorporated on July 23, 1991, and was registered extra-provincially under the Company Act on August 5, 1993;

3. The Registrar of Companies dissolved Magic International on July 21, 1995, and canceled Majik’s registration on January 10, 1997, for failure to make required filings;

4. Mervin Michael Bodnarchuk was the president and a director of Magic International on May 3, 1991, and until the date of its dissolution, and was the president and a director of Majik on May 3, 1991, and until the date that its registration was cancelled;

5. Bodnarchuk has resided in British Columbia since 1980. Bodnarchuk is the founder and the chairman of Renaissance Capital Group Inc., a company incorporated under the laws of the State of Utah, and has recently distributed some of the securities of Renaissance in British Columbia. Renaissance is in the business of selling car financing and its shares trade in the over the counter market in the United States;

6. On January 15, 1990, the Alberta Securities Commission Board ordered that Bodnarchuk cease trading in all securities until January 15, 1995;

7. On April 9, 1992, the Alberta Securities Commission ordered, following a hearing, that Bodnarchuk cease trading in all securities until January 15, 2010;

8. On March 24, 1992, and again on April 2, 1992, Bodnarchuk traded in the securities of Magic International in contravention of the January 15, 1990 cease trade order issued against Bodnarchuk by the Alberta Securities Commission Board, and thereby committed offences contrary to the provisions of the Alberta Securities Act;

9. On February 7, 1994, in the Provincial Court of Alberta, Bodnarchuk pleaded guilty to, and was convicted of, the offences referred to in paragraph 8;

10. On April 19, 1990, the Saskatchewan Securities Commission ordered that Bodnarchuk cease trading in all securities until further ordered;

11. During the period from May 3, 1991, to October 25, 1991, Bodnarchuk committed the following offences contrary to the provisions of the Saskatchewan Securities Act:

(a) four counts of trading in the securities of Magic International without registration;

(b) three counts of distributing the securities of Magic International without having obtained receipts for both a preliminary prospectus and a prospectus in respect of the distribution;

(c) three counts of giving an undertaking relating to the future value or price of the securities of Magic International with the intention of effecting a trade in the securities;

(d) three counts of making representations that the securities of Magic International would be listed on a stock exchange with the intention of effecting a trade in the securities;

(e) two counts of failing to comply with the April 19, 1990 cease trade order issued against Bodnarchuk by the Saskatchewan Securities Commission by trading in the securities of Magic International;

(f) two counts of trading in the securities of Majik without registration;

(g) one count of distributing the securities of Majik without having obtained receipts for both a preliminary prospectus and a prospectus in
respect of the distribution;

(h) one count of giving an undertaking relating to the future value or price of the securities of Majik with the intention of effecting a trade in the securities; and

(i) two counts of failing to comply with the April 19, 1990 cease trade order issued against Bodnarchuk by the Saskatchewan Securities Commission by trading in the securities of Majik.
    12. During the period from March 20, 1992, to June 30, 1992, Bodnarchuk committed the following offences contrary to the provisions of the Saskatchewan Securities Act:

    (a) ten counts of trading in the securities of both Magic International and Majik without registration; and
      (b) ten counts of failing to comply with the April 19, 1990 cease trade order issued against Bodnarchuk by the Saskatchewan Securities Commission by trading in the securities of both Magic International and Majik.
        13. On July 16, 1992, the Saskatchewan Securities Commission ordered that Bodnarchuk cease trading in all securities, and that all trading cease in the securities of Majik and Magic International, until further ordered.

        14. On April 23, 1993, in the Provincial Court of Saskatchewan, Bodnarchuk pleaded guilty to, and was convicted of, the offences set out in paragraphs 11 and 12.

        15. During the period from October 27, 1991, to February 19, 1992, Bodnarchuk traded on nine separate occasions in the securities of Majik without registration and thereby committed offences contrary to the provisions of the Manitoba Securities Act;

        16. On September 3, 1992, the Manitoba Securities Commission ordered, following a hearing, that Bodnarchuk cease trading in all securities, and that all trading cease in the securities of Majik and in any securities promoted by Bodnarchuk, until further ordered;

        17. On May 2, 1995, in the Provincial Court of Manitoba, Bodnarchuk pleaded guilty to, and was convicted of, the offences set out in paragraph 15;

        AND WHEREAS Bodnarchuck’s past conduct in Alberta, Saskatchewan and Manitoba shows a pattern of disregard for securities regulation and Bodnarchuck represents a threat to investors in British Columbia;

        AND WHEREAS we consider it in the public interest to do so;
          NOW THEREFORE, we order:

          1. under section 161(1)(c) of the Act that the exemptions described in sections 44 to 47, 74, 75, 98 and 99 do not apply to Bodnarchuck for a period of 15 years from the date of this order;

          2. under section 161(1)(d) of the Act that Bodnarchuck resign any position that he holds as a director or officer of an issuer and that he is prohibited from becoming or acting as a director or officer of any issuer for a period of 15 years from the date of this order;

          3. under section 161(1)(d) of the Act that Bodnarchuck is prohibited from engaging in investor relations activities for a period of 15 years from the date of this order; and

          4. under section 174 of the Act that Bodnarchuck pay fees and charges for the costs of or related to the hearing in the amount of $1000 .

          DATED at Vancouver, British Columbia, on July 4, 1997.

          FOR THE COMMISSION






          Joyce C. Maykut, Q.C. Adrienne R. Wanstall
          Vice Chair Member





                          Diane K. Wolch
                          Member
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