Vancouver entrepreneur Arthur Griffiths has agreed to pay a $30,000 fine for breaching securities regulations related to a cannabis company he led, resulting in losses for investors. Griffiths, known for his ownership of the Vancouver Canucks and Vancouver Grizzlies, served as the CEO of RoccaVerde Wellness Corp. in 2019. The company raised over $192,000 from investors without submitting a necessary prospectus document detailing the investment.
The settlement between Griffiths and the BC Securities Commission reveals that before Griffiths assumed a director role, RoccaVerde engaged “finders” to attract “accredited investors.” However, upon joining the company, Griffiths failed to ensure that these finders complied with regulatory requirements.
The agreement highlights that while accredited investors are exempt from prospectus obligations under the Securities Act, many individuals referred by the finders did not meet this status. Griffiths acknowledged his oversight in ensuring RoccaVerde’s adherence to the law.
Despite authorizing the company’s violations, Griffiths admitted to his wrongdoings prior to a hearing, cooperated with the commission’s inquiries, and expressed regret for his actions. Notably, Griffiths, a member of the BC Sports Hall of Fame since 2016, faced significant challenges in the past, such as the distressing sale of the Canucks and the Vancouver Grizzlies due to economic factors like the weak Canadian dollar.