The founder and head of a consumer marketing company and his firm, which illegally distributed securities and misappropriated some of investors’ money, are paying $4.2 million to settle allegations from the British Columbia Securities Commission (BCSC).
The executive director of the BCSC settled with the Alberta-based company, Hit TV Brands Inc., and its B.C.-based founder and CEO, William Brent Meikle, who admitted to breaching securities laws when they raised several million dollars from investors without a prospectus, made misrepresentations to investors and used $1 million worth of investors’ funds for personal expenses.
According to the settlement, between February 2018 and December 2019, the company, which claimed to be in the business of pitching consumer products — including batteries under the brand name “JUICE” and a spray-on lubricant, “MotoGator” — raised funds from investors without a prospectus or an exemption, and made misrepresentations to shareholders about its “imminent revenue prospects, an imminent public offering, and imminent equity financing.”
Under the settlement, they agreed to disgorge almost $3.69 million to the BCSC, and Meikle agreed to pay an additional $500,000 to resolve the regulator’s allegations. They are also both permanently banned from the securities market.
The BCSC said harmed investors will be able to make claims for a share of the disgorgement money after it’s paid.