VANCOUVER, Feb. 5 /CNW/ - A British Columbia Securities Commission panel
has fined the chief executive officer of a B.C.-based business $100,000 and
prohibited him from participating in the province's capital markets for
10 years for committing fraud and contravening other securities laws.
On Dec. 14, 2007, the panel found Michael Savage, a B.C. resident,
illegally distributed securities based on misrepresentations, and then
fraudulently moved funds into his fiancée's account.
In early 2000, Savage sold US $765,000 of securities of Savage Tele.com
Corporation to a group of investors without being registered to do so and
without filing a prospectus. He told the investors that Savage Tele.com was an
incorporated company and that it had purchased two internet service providers,
knowing that neither of these representations was true.
After learning of the misrepresentations, the investors asked Savage for
their money back and threatened to sue. Savage refused and moved what remained
of the US $765,000 from a company account to avoid having 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.
In addition to imposing an administrative penalty of $100,000, the panel
prohibited Savage from engaging in investor relations and acting as a manager
or consultant in connection with securities markets, and, with limited
exceptions, from becoming or acting as a director or officer of any issuer for
10 years. The panel also banned him from trading securities in the province's
capital markets for 10 years.
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 2008 BCSECCOM 71. 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)