News Release

B.C. securities regulator alleges illegal distribution against Kelowna cab driver

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Vancouver – The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that a cab driver who lives in Kelowna sold securities in breach of securities laws.

The notice alleges that between January 2009 and May 2012, Rodney John Snider sold promissory notes in Flag Resources (1985) Limited to 11 B.C. residents for proceeds of $140,500. BCSC staff contends that these distributions did not qualify for exemptions from the prospectus requirement under the Securities Act. Also, Snider has never been registered to sell securities in B.C.

Flag is an Alberta-incorporated mining company and reporting issuer in B.C. In 2005, the TSX Venture Exchange de-listed the company for failing to maintain exchange-listing requirements and in 2006, the BCSC issued a cease trade order against Flag for failing to file financial records.

The notice alleges that Snider told investors to forward funds to a director of Flag (now deceased). The director sent each investor a letter stating that their “loan” entitled them to shares and share purchase warrants, which they could redeem when Flag resumed trading. The director withdrew investor funds via bank drafts issued in his name.

BCSC staff maintains that by selling Flag securities without being registered and without a prospectus, Snider breached securities laws. The notice also alleges that Snider’s conduct was contrary to the public interest.

These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on December 23, 2014, at 9:00 a.m.

You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing Rodney John Snider or 2014 BCSECCOM 471 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

  • A securities market that is fair and warrants public confidence
  • A dynamic and competitive securities industry that provides investment opportunities and access to capital


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Media Contact:
Richard Gilhooley, Media Relations

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