There is no such thing folks! We at the BCSC get very frustrated when we see so many cases where people fall for this promise.
Recently we settled with two individuals who admitted to contravening various securities laws when they solicited funds for a failed investment scheme that raised about $9.6 million from 863 investors. Investors were told that their funds would be used to buy and sell distressed merchandise, and that they could expect between 100 per cent (their initial investment) and 300 per cent return within 90 days.
That is a huge red flag. 100 per cent return – not possible in a legitimate investment. How do we get the message through to people that these types of promises could lead to losing all of their investment?
With all of the media attention of the Madoff scam (promised up to 46% annually) in the US, surely people will become more cautious, checking to see if their advisor is registered and getting a second opinion of promised returns that are suspiciously high.
Report a Concern to the BC Securities Commission
Be wary of so-called “safe” investments with high returns. If you come across an investment that seems too good to be true, report it to the BCSC. We welcome questions, comments, and tips from investors.
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymous using BCSC’s online complaint form.
In October, the BC Securities Commission (BCSC) issued one settlement agreement. The Mutual Fund Dealers Association of Canada (MFDA) issued one decision, and the Investment Industry Regulatory Organization of Canada (IIROC) issued one penalty decision and accepted one settlement agreement relating to BC residents. You can find a summary of some of the recent matters […]
Last night, CBC TV ran a story about the collection rates of financial penalties imposed by Canadian regulators. we explained that our rate of the collection was lower than other Canadian regulators because of four significant fraud cases, one of which was the Manna Trading Corp. case. We went on to feature the Manna Trading […]