Energy TV chief to pay $460,000
ASC permanently bans Chandran from trading, boards and advising
The independent Calgary television producer who put Energy TV on the air says he “deeply regrets” losses suffered by his investors after he was fined $400,000 by the Alberta Securities Commission for illegally trading and distributing securities.
On Friday, the commission said Neil Suresh Chandran and his companies, Energy TV Inc., Chandran Holding Media, Inc. and Chandran Media, are permanently banned from trading. It added Chandran is also permanently banned from acting as an officer or director with an Alberta company or as a securities adviser or consultant.
The penalties were jointly agreed upon by the panel and Chandran, who has also been ordered to pay $60,000 to cover the costs of the investigation and hearing.
Chandran refused an interview but provided a written statement to the Herald through his Calgary lawyer.
“I deeply regret the losses suffered by investors and accept the penalties imposed by the Alberta Securities Commission in light of the outcome,” he wrote.
“It was not my intention to violate securities regulations at any time, as my focus was primarily on developing the business in a challenging industry. The businesses operated successfully for a period of time, employed many employees and paid the promised returns to investors. Like many others, our business was severely affected by the downturn of 2008-09 which ultimately resulted in its failure.”
In its written decision, the panel noted Chandran raised about $39 million from at least 210 investors, most living in Alberta, between March 2007 and June 2009.
It found the money was raised by selling shares or entering into loan agreements, often with “seemingly very attractive returns” ranging up to 1,000 per cent within a year, although neither the companies nor Chandran was ever registered to do so.
“As for harm done, we understand from the parties that, while some investors received returns and were repaid their principal, most of the investors have lost their invested money,” the decision notes.
The ASC accused Chandran and Energy TV Inc. last June of committing fraud by raising money for a boxing match in Las Vegas that never took place. Friday’s decision, however, notes an ASC fraud allegation admitted to by Chandran had been withdrawn at the suggestion of staff, without saying why.
Chandran’s media production business employed up to 100 peo- ple with a two-year payroll of over $5 million to produce TV and video programs, including Energy TV, a program that appeared on Global TV in Calgary and Edmonton, the ASC noted. It said the firms have closed and Chandran has moved away from the province.
It’s unclear where Chandran now resides but, in a news release issued March 25, a Las Vegas company called SunGame Corp. announced he had resigned as its CEO but would continue as “founder and product development manager.”
The March release also noted that it was “originally erroneously reported that Mr. Chandran had settled a securities violations case in Alberta, but that filing was amended as the case has not yet been resolved.”