BigFoot ski resort director fined $2 million for fraud

B.C. Securities Commission ruling states Ronald Stephen McHaffie scammed investors out of more than $640,000

The project director of a proposed ski resort in the area has been fined $2 million by the B.C. Securities Commission.

In a ruling released last Friday, the commission said Ronald Stephen McHaffie fraudulently enticed 30 people to invest in BigFoot Recreation & Ski Area Ltd. and raised about $642,960 through the sale of shares in BigFoot between August 2007 and January 2012.

However, the company, which was incorporated in 2003 to develop the resort, never filed a prospectus in B.C. and McHaffie has never been registered to sell securities in B.C.

“The panel found that, through the sale of shares in BigFoot, McHaffie committed a fraud,” the ruling said.

“In that regard, McHaffie made false statements to entice investors, such as telling them that their investment would be used for expenses related to getting BigFoot publicly listed, and that construction or completion of the ski resort was imminent.”

Instead, according to the ruling, McHaffie used investor funds to pay for personal expenses, including gas, restaurants, groceries and retail purchases, not for expenditures related to taking BigFoot public.

In addition, although BigFoot’s ski resort proposal was rejected by the provincial government in September 2010, McHaffie continued to raise a total of $111,070 from investors after that date. 
The commission found that Bigfoot’s distribution of shares to 27 of the 30 investors for proceeds of $621,960 contravened the prospectus requirements in the Securities Act. McHaffie also contravened the Act because, as a director of BigFoot, he authorized, permitted and acquiesced in the company’s contravention.

McHaffie and BigFoot have been permanently prohibited from trading or purchasing securities or exchange contracts, from acting as a registrant or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market. McHaffie is also permanently prohibited from acting as a director or officer of any issuer or registrant.

In addition to the $2 million fine, the commission has ordered McHaffie to pay back the $642,960 he raised from investors.

Just Posted

U-Save property owner files six lawsuits against District of Hope

One of the lawsuits demands $6,200 to undo the work done on the roundhouse.

Rainfall warning issued across Lower Mainland into the weekend

50 to 70 mm of rain expected to fall starting overnight Friday and into Sunday morning

Husband pleads guilty in relation to 2009 killing of Kulwinder Gill

Abbotsford woman died in hit-and-run conspiracy

Raymond Lee Caissie gets life in prison for murdering Surrey teen in 2014

Judge numbers Caissie among ‘violent merciless men without a conscience’

Area A, B lose power, wireless service due to winds

BC Hydro and TELUS are working to restore service.

VIDEO: ‘Lyle the singing pig’ searching for home

SPCA say the pig is ‘not opera-ready’

Man in custody linked police search near Salmon Arm

Police have not connected arrest to search at Salmon River Road property

B.C. search groups mobilize for missing mushroom picker

Searchers from across the province look for Frances Brown who has been missing since Oct. 14.

Search for missing B.C. man a race against winter weather

David Jeff of Williams Lake was last seen in Kamloops during the chaotic wildfire evacuations

Man steals police car, goes for a ‘slow’ ride

Mission RCMP say the motive of the theft is unknown

Dodgers punch ticket to World Series

This will be the first time the Los Angles Dodgers have made it to the World Series since 1988.

Surf group winning the war on plastic bags

The Tofino Co-op will no longer provide plastic bags, following in the footsteps of the Ucluelet location that already made the change earlier this year.

All three victims identified in Fernie arena ammonia leak

Wayne Hornquist and Lloyd Smith were from Fernie and Jason Podloski from Turner Valley, Alta

5 to start your day

Sentencing in murder of Surrey teen expected, Maple Ridge mayor to step away from politics and more

Most Read