On April 2, 2013, the Manitoba Securities Commission warned investors about Felmina Alliance, a “high-yield investment” scheme offered through a website and purportedly operating out of New York/and or Panama.
The MSC issued the alert because of its concern that Manitobans may be involved in the scheme. It was the third alert the MSC sent out in a month, and the second focusing on a high-yield investment program (HYIP). BCSC staff added Felmina Alliance to the Investment Caution List after the MSC issued its alert. The Ontario Securities Commission (OSC) also warned people not to invest with Felmina Alliance in mid-March.
Often when HYIPs receive public attention from securities regulators, their websites go down – we saw this with Profitable Sunrise. This is not the case with Felmina Alliance. Its website is still active at the time we are publishing this blog post.
If Felmina Alliance, or any other non-registered entity, approaches you to invest, report it to your local securities regulator immediately. You can check a firm’s registration status on the Canadian Securities Administrators (CSA) website.
BCSC adds Corolla Financial to Investment Caution List
In mid-March, BCSC staff put Corolla Financial on the Investment Caution List after learning the firm solicited a BC resident to invest.
On its website, Corolla Financial states that it provides financial advisory and brokerage services to personal and corporate clients. However, Corolla Financial is not registered in BC to trade in, or advise on, securities or exchange contracts.
Furthermore, the Danish Financial Supervisory Authority and the Financial Services and Markets Authority of Belgium issued warnings about Corolla Financial.
The BCSC urges British Columbians to exercise caution when dealing with firms that are not registered to trade or advise in BC.
More warnings and alerts from securities regulators
- On March 12, The OSC warned investors about Hanalex Services Ltd., doing business as TradeQuicker.com.
- On March 5, the MSC issued an Investor Alert on Accredited International/ Accredited FX, after the commission became aware that a Manitoba resident received a cold call from the purported Forex dealer.
- On Feb. 13, 2013, the Nova Scotia Securities Commission tweeted a warning that Strategic Investments from Chicago was soliciting Nova Scotians to invest.
- The Autorité des marchés financiers ordered David Kam to stop soliciting investors via the Internet. It also warned investors about the website, leaderoption.com and an entity going by the name of Scorpion Performance, regarding phone solicitations into BC, Saskatchewan, Manitoba, and Québec.
The Criminal Intelligence Service of Canada (CISC) released its 2010 Report on Organized Crime. This year, it focuses on securities fraud. The report confirms what we have been blogging about extensively. The increased use of social networking sites to recruit victims and promoters combined with the economic downturn has produced more Ponzi and fraudulent investment schemes than […]
The CSA encourages all investors to participate in Check Registration Day on March 16, 2016.