VANCOUVER, Dec. 17 /CNW/ - A British Columbia Securities Commission panel
has found that the chief executive officer of a B.C.-based business
contravened various securities laws when he traded and distributed securities
without being registered and without a prospectus, made misrepresentations,
and fraudulently moved funds into his fiancée's account.
In early 2000, Michael Savage, a B.C. resident, promoted and sold the
securities of Savage Tele.com Corporation, as exempt securities, to a group of
eight investors. He told them that the company existed, knowing that
incorporation had been delayed. He also told them that the business had
purchased two of a planned 24 internet service providers, knowing that it had
not done so. The panel found that these were misrepresentations.
When Savage was promoting and selling the investment, purportedly in
Savage Tele.com Corp., he was not registered to trade securities in B.C., nor
had a prospectus been filed. The panel found that no registration or
prospectus exemptions applied.
In June 2000, the investors asked Savage for their money back and
threatened to sue. The next day Savage withdrew US $530,000 from a company
account to avoid a possible court order to pay the funds into court during any
litigation. In August 2000, Savage endorsed about US $246,000 of these funds
over to his fiancée.
The panel found that Savage perpetrated a fraud when he moved the money
to his fiancée and gave her unrestricted access to funds to which she was not
The panel directed the parties to make submissions on sanctions according
to the schedule set out in the findings.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the decision on our website www.bcsc.bc.ca by typing in the
search box, Michael Savage or 2007 BCSECCOM 737. If you have questions,
contact Ken Gracey, Media Relations, 604-899-6577.
Learn how to avoid investment fraud at the BCSC's investor education
For further information:
For further information: Ken Gracey, (604) 899-6577 or (B.C. & Alberta)