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Former Kelowna Rocket admits to insider trading, fined $200k

Cam Paddock helped the Kelowna Rockets win the Memorial Cup in 2004
Former Kelowna Rocket Cam Paddock has admitted to insider trading and conduct that was abusive to capital markets, resulting in a 10-year suspension and $200k fine. (Twitter)

A member of the 2004 Memorial Cup-winning Kelowna Rockets is in hot water.

According to the BC Securities Commission (BCSC), Cameron Robert Paddock and Rockshore Advisors Limited have admitted to insider trading and conduct that was abusive to capital markets. This was done through a pattern of acquiring and selling shares of various companies where he was acting as a consultant.

Rockshore, which was formerly named Cam Paddock Enterprises, bought shares from six different issuers. This was done through private placements under the prospectus exemption for consultants. To offset the costs of the shares, Rockshore would sell the shares elsewhere and often for less than what they paid. The company admitted this was abusive to capital markets.

Two of the issuers were aware that the funds raised in the private placements would be paid to consultants, which was a fact that was not disclosed. By acquiring and selling shares of those issuers under those circumstances, Rockshore and Paddock, as Rockshore’s sole owner and director, engaged in insider trading.

Under a settlement agreement with the BCSC, Paddock, the 40-year-old North Vancouver native, and his company are paying a fine of $200,000 and are prohibited from participating in various market activities for 10 years, which includes:

•Trading in or purchasing any securities or derivatives;

•Advising or otherwise acting in a management or consultative capacity in connection with activities in the securities or derivatives markets;

•Engaging in promotional activities by or on behalf of an issuer, security holder or party to a derivative or another person that would be expected to benefit from the promotional activity;

•Relying on an exemption in the Securities Act, the regulations or a decision;

•Becoming or acting as a director or officer of any issuer or registrant;

•Engaging in promotional activities on his own behalf in circumstances that would be expected to benefit him.

In 223 WHL games with the Rockets, over five seasons from 1999-2005, Paddock scored 107 goals and added 98 assists to total of 205 points. He added four points in four points when the Rockets won the Memorial Cup in 2004.

Paddock was drafted in the fifth round (137th overall) of the 2002 draft by the Pittsburgh Penguins. He appeared in 16 NHL games for the St. Louis Blues in 2008-09, collecting three points.

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Jordy Cunningham

About the Author: Jordy Cunningham

Hailing from Ladner, B.C., I have been passionate about sports, especially baseball, since I was young. In 2018, I graduated from Thompson Rivers University in Kamloops with a Bachelor of Journalism degree
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