A British Columbia Securities Commission (BCSC) panel fined Michael Savage, the CEO of a B.C.-based business, $100,000 for committing fraud and contravening other securities laws.

Savage is also prohibited from participating in the province’s capital markets for 10 years.

On Dec. 14, 2007, a BCSC panel found 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 scam, the investors asked Savage for their money back and threatened to sue. Savage refused and moved what remained of the money 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.

Over and above the fines and trading ban, Savage is prohibited 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.