The Alberta Securities Commission (ASC) and the British Columbia Securities Commission (BCSC) are warning investors of what appears to be a ‘recovery room’ scheme that is reportedly targeting Medwell Capital shareholders. Recovery room schemes involve companies that contact investors who may be losing money in a current investment with an offer to buy their shares at an inflated price or exchange them for shares in a different company. Once investors agree to the deal, the operators of the scheme ask the investor to first pay a fee for the transaction or there is a cost to exchange shares. The operators keep the fee, but do not repurchase the shares or issue the promised replacement shares.

This investor alert is in response to reports that Medwell Capital shareholders in Alberta, B.C. and Ontario have been solicited directly via phone or email by a man representing himself as Michael DeJuan of NT Global. The man is offering to purchase Medwell Capital shares from investors in exchange for shares in a different company at a significantly higher price. Shareholders are then emailed a form to complete that includes their contact information and the address of NT Global. The address on these forms is false and NT Global Advisors, a Canadian subsidiary of Northern Trust Global Advisors based out of Chicago, Illinois, indicates that their employee, Michael DeJuan, is not making any such representations to Medwell Capital investors.

If the public has any information regarding the investment scheme described in this alert, they should report or forward this information to the ASC or BCSC by calling the Public Inquiries lines listed below.

The ASC is the regulatory agency responsible for administering the Alberta’s securities laws. The BCSC is the independent provincial government agency responsible for regulating trading in securities within British Columbia. Both agencies are entrusted to foster fair and efficient capital markets in their provinces and to protect investors. 

 

Public Information: 

 

BCSC Public Inquiries

604-899-6854

Toll Free 1-800-373-6393

 

ASC Public Inquiries

403-297-4296

Toll Free 1-877-355-0585
 

Suggested Reading

BC Securities Enforcement Roundup – October 2013

In Your Community - October 2014

Who you gonna call?

More Resources

Burnaby library presentation Pt. 2: questions and answers

Recently, my colleague and I had the pleasure of presenting an InvestRight seminar to a group at the Metrotown branch of Burnaby library. The reception the presentation received was great, and we had a quite a few questions during and after the seminar. Last week, we provided answers to half of the questions we received. […]

Fight fraud with the Little Black Book of Scams

As this year’s Fraud Prevention Month winds down, we thought that it would be good to point you to a resource from the Competition Bureau that you can you can use to identify different types of scams throughout the year. The Little Black Book of Scams is a guide that Canadians can use to protect […]