The British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging the director of a B.C.-based company committed fraud and illegally distributed securities.
According to the notice from the BCSC, Ronald Stephen McHaffie and BigFoot Recreation and Area Ltd. raised $642,960 from 30 investors through the sale of shares in BigFoot for the purpose of developing a ski area near Jones Lake, B.C.
The BCSC alleges the company never filed a prospectus in the province, nor has McHaffie ever been registered to sell securities in B.C. BigFoot was incorporated in B.C. in 2003.
The BCSC notice alleges that because of the sale of shares through BigFoot, McHaffie committed fraud. Furthermore, McHaffie allegedly made false statements to lure investors, telling them that their money would be used to get BigFoot publicly listed. He is also alleged to have informed the investors that the construction of BigFoot was to begin soon.
According to the notice, these statements were false as McHaffie used the money to pay bills, buy gas and groceries and eat at restaurants.
In September 2010, the province rejected the ski resort proposal, but McHaffie allegedly continued to raise money.
The BCSC also alleges that no exemption was provided to 27 of the 30 investors, thereby making $621,960 of the amount collected illegal.
None of these allegations has been proven. A panel of commissioners is scheduled to meet on June 25 in order to set a date for a hearing.
