Notices of Hearing & Temporary Orders
Michael Savage [Amended Notice of Hearing]
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BCSECCOM #:
2005 BCSECCOM 650
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Document Type:
Amended Notice of Hearing
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Published Date:
2005-11-01
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Effective Date:
2005-10-31
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Details:
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2005 BCSECCOM 650
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2005 BCSECCOM 650
Amended Notice of Hearing
Michael Savage ^
Section 161 of the Securities Act, RSBC 1996, c. 418
Michael Savage ^
Section 161 of the Securities Act, RSBC 1996, c. 418
¶ 1 The Commission will hold a hearing at which the Executive Director will tender evidence, make submissions and apply for orders against Michael Savage (Savage) ^ under sections 161, 162 and 174 of the Securities Act, RSBC 1996, c. 418.
¶ 2 The Executive Director alleges that the following conduct and activity was contrary to the public interest:
The Respondent^
1. At material times, Savage ^ was a resident^ of British Columbia.
Fraud
2. In March 2000, ^ Savage purported to sell to investors shares in a entity named Savage Tele.com Corporation.
3. Eight investors (the Investors) paid a total of $765,000 USD to ^ Savage for these shares and entered into share subscription agreements ^ purportedly ^ with Savage Tele.com Corporation.
4. The Investors entered into the subscription agreements in reliance upon misrepresentations made by ^ Savage, including the false claim that Savage Tele.com Corporation had been incorporated in British Columbia, the State of Delaware, or both.
5. In fact, Savage Tele.com Corporation did not exist and the Investors received nothing in return for their investments.
6. The Investors demanded the return of their money. ^ Savage refused and instead fraudulently conveyed the Investors’ funds to ^ his personal bank account^ and those of other individuals in order to put the money out of the reach of the Investors.
Other Misrepresentations
7. ^ Savage made further misrepresentations to the Investors, both orally and in a business plan pertaining to Savage Tele.com Corporation (the Business Plan). These included the following false or prohibited statements:
(a) shares in Savage Tele.com Corporation were, or were going to be, listed on the National Association of Securities Dealers Quotation system;
(b) the Business Plan was a prospectus;
(c) Savage Tele.com Corporation had acquired two local internet service providers; and
(d) Savage Tele.com Corporation was authorized by the Canadian Radio-television and Telecommunications Commission to operate as a competitive local exchange carrier.
Breaches of the Act
8. Through ^ his conduct and the activity described in this Notice of Hearing, ^ Savage:
(a) traded in securities without being registered under the Act, contrary to section 34(1) of the Act;
(b) distributed securities without having filed a prospectus, contrary to section 61 of the Act;
(c) made statements that they each knew, or ought to have known, were misrepresentations, contrary to section 50(1)(d) of the Act; and
(d) participated in a series of transactions that they knew, or ought reasonably to have known, perpetrated a fraud, contrary to section 57.1(b) of the Act.
Hearing Process
¶ 3 At the Hearing, ^ Savage may be represented by counsel, make submissions and tender evidence. ^ Savage ^ is requested to advise the Commission of ^ his intention to attend the Hearing by informing the Commission Secretary at PO Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, BC V7Y 1L2 phone: (604) 899-6500; email: commsec@bcsc.bc.ca.
¶ 4 ^ Savage or ^ his counsel ^ is required to attend at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, British Columbia, on Wednesday, August 17, 2005, at 10:00 am if ^ he wishes to be heard before the Commission sets a date for the Hearing.
¶ 5 Determinations may be made in this matter if ^ Savage, or ^ his counsel, do not appear at the Hearing.
¶ 6 October 31, 2005
¶ 7 Brenda M. Leong
Executive Director