The BCSC recently added China International Capital Group, and two other companies to its Investment Caution List after learning they may be soliciting investors.
BCSC staff put China International Capital Group on the list after learning shareholders of York-Rio Resources might be receiving offers to buy back their shares at a substantial premium. The BCSC is aware of one BC resident who was contacted.
In the past, entities identifying themselves as Penn Capital Management and Featherstone Bellman Equity Exchange Group (FAB) also approached York-Rio shareholders with share buy-back offers. The BCSC issued investor alerts about Penn Capital and FAB, warning them they could be targets of a ‘recovery room’ or ‘re-up’ investment scheme.
In a ‘recovery room’ or ‘re-up’ scheme, victims of previous investment schemes are offered inflated prices for their shares. Once the investor agrees to sell their shares, a contract is drawn up and the investor is instructed to wire a sum of money to an offshore bank account to cover business costs. The perpetrators withdraw the money and the victim loses money a second time.
Penn Capital and FAB were also added to the Investment Caution List.
The BCSC placed Knox Securities Corp. LLC on the Investment Cautions List after learning Ontario investors received share buy-back offers.
According to an Aug. 1, 2012 warning by the Ontario Securities Commission (OSC), Knox Securities is soliciting investors via e-mail and telephone to sell shares of illiquid companies, including SK Resources. The warning says OSC staff are aware that investors who purchased a number of illiquid securities, including SK Resources, have previously been and are now being targeted by fraudulent “advance fee” schemes.
On July 24, 2012, the Autorité des marchés financiers in Quebec warned investors about recent solicitations to invest in the derivatives market made by e-mail and telephone. The company making the solicitations was Best Commodity Options, a company that is not authorized to operate in Quebec or BC.
None of these three Investment Caution List additions are registered to trade in, or advise on, securities and exchange contracts in BC. We urge BC residents to exercise extreme caution when dealing with firms that are not registered to trade or advise in securities.
In December 2013, the BC Securities Commission issued two settlements, three notices of hearing, and announced a Supreme Court of Canada decision upholding a commission panel’s decision. The Investment Industry Regulatory Organization of Canada (IIROC) released one settlement in December 2013 relating to a BC resident. The Mutual Fund Dealers Association did not release any […]