CALGARY – Alberta regulators have fined Neil Chandran $400,000 and imposed other sanctions on the independent TV producer for improperly raising millions of dollars for various entertainment projects, including a televised boxing match that never took place.
In a ruling Friday, a panel of the Alberta Securities Commission also ordered Chandran or the entities he controlled — Energy TV Inc., Chandran Holding Media and Chandran Media — to pay $60,000 towards the cost of the investigation.
A permanent cease trade order was placed on Energy TV, Chandran Holding and Chandran Media securities.
Chandran himself was banned from acting as a director or officer of any issuer and from acting in a management or consultative capacity in connection with securities-market activities.
In announcing the investigation last June, the ASC accused Chandran of having “perpetrated a fraud” in raising what it said was more than $56 million from investors, most of them in Alberta, for various television, video and web-based products.
Investors were told Energy TV would, among other things, promote and stage a World Boxing Federation match in Las Vegas that would see them earn profits of between 50 and 75 per cent within five days of the event, which was to occur about 30 days from the investment date.
“The event never took place,” the commission said.
“Instead, ASC staff allege that Chandran and Energy TV used investor’s funds to pay the company’s operating expenses.”
ASC staff also allege that Chandran and his companies engaged in illegal trades and distributions and made prohibited representations in raising the money.
“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 ASC panel said Friday in a statement.