News Release

Vancouver – The British Columbia Securities Commission has permanently banned a B.C. man from the securities market after finding that he illegally sold securities, and lied to and defrauded investors in three separate schemes.

In two commission decisions, Glenn Anthony Rosen is permanently prohibited from trading securities, acting as a director or officer of any issuer, and engaging in investor relations activities. He must also pay combined penalties of $375,000 to the commission along with costs.

Rosen illegally raised more than $440,000 from investors through “a pattern of deceitful behaviour to exploit the vulnerabilities of prospective victims and induce them to part with their money.” His method included:

• Offering shares in companies which he said would soon increase significantly in value on an impending merger or public offering;
• Telling prospective investors that the shares had to be purchased quickly or the opportunity would pass, or that the money was needed urgently to allow the valuable merger to go ahead;
• Soliciting the friends or family of his existing investors and using social contacts both for funds and to solicit other investors.

Rosen provided some documentation in the form of a business plan and share certificates, and repeated additional oral and written information to provide reassurance that matters were proceeding as expected (or to explain why they were not). But, the documentation was not of the nature or quality that an experienced investor would expect to receive.

Rosen victimized at least 47 investors when he lied and committed fraud in raising about $311,659 from them. He used two companies, Sniper Sports Ltd. (supposedly in the business of manufacturing and selling hockey sticks) and a numbered company (supposedly to manufacture, licence and market a car detailing product called “Tire-Tux”), to defraud the investors.

In the third scheme, Rosen used Statik Sports Inc. (again, a company supposedly in the business of manufacturing and selling hockey sticks), to perpetrate a fraud on the investors. This time, investors lost $128,700.

The panel said that in these schemes, Rosen “engaged in wilful deceit” and repeatedly lied to investors. As one victim said of Rosen about the loss of her investment: “You have hurt people. You have hurt families.”

The commission panel noted that in January 2005, the B.C. Supreme Court convicted Rosen of theft after he failed to invest money given to him as directed. Instead, he used the money to buy product used in the Tire-Tux scam.

The panel, in imposing the lifetime ban on Rosen in the Sniper Sports decision, said: “To trade without registration and without a prospectus, and (knowingly) to make fraudulent misrepresentations and to decline to report insider trading are very serious breaches.  Rosen’s conduct seriously harmed investors and damaged the integrity of the securities market in British Columbia.

“Rosen clearly poses a continuing risk to investors in British Columbia… He used the same method of operation, but incorporated and used a different company (Statik Sports Inc) and worked with different individuals…This is powerful evidence that Rosen is very unlikely to change his behaviour. His conduct overall also leaves us in no doubt that he is unfit to hold a position of trust as a director or officer of an issuer.”

In the Statik Sports scheme, the commission panel ordered a more severe monetary penalty of $200,000 compared with the $175,000 ordered in the Sniper Sports decision because Rosen began the scheme after BCSC staff had issued the Sniper Sports notice of hearing on May 7, 2003.

“Despite the issue of the notice of hearing…, Rosen continued to engage in conduct that was at significant risk of being found to be a deliberate flouting of the securities laws, and to have caused fraudulent losses to investors.”

As part of the decisions, the commission has also cease traded the securities of 592087 B.C. Ltd., Sniper Sports Ltd., and Statik Sports Inc.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decisions on our website www.bcsc.bc.ca by typing in the search box, Glenn Anthony Rosen or 2005 BCSECCOM 560 & 561. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.