Say No to Craigslist Investment Offers

The Globe and Mail’s Janet McFarland and the Vancouver Sun’s David Baines both wrote about our recent notices of hearing about responding to investment offers on Craigslist.

In March, we alleged that a BC man and two companies he controls made materially false statements while promoting an investment on Craigslist. Gaia Equity claimed to guarantee BC investors a risk-free monthly rate of return of up to 9.83% through investments in renewable energy projects in developing countries. Samuel Richard Allaby also claimed that these risk-free investments were guaranteed by the World Bank and the International Monetary Fund.

In May, we alleged that Paul Stiles told investors through ads posted on Craigslist that investors could earn returns ranging from 12% annually to 100% within six months by investing in Velocity Entertainment Inc., a private company that he claimed was producing feature films.

Two messages: There is no such thing as a guaranteed return and the returns promised in both of these cases are completely unrealistic; and, don’t respond to any investment offers on Craigslist.

Suggested Reading

Three companies and suspended registration added to caution list

Protecting Canadian Investors

BC Report Warns of Gap between Investor Attitudes and Behaviours

More Resources

Investor Alert: Beware of investment ploys touting foreign direct investments in India

  November 6, 2006 Vancouver – British Columbians should be careful if they are approached about investing in nations with rapid economic development such as India, warns the province’s securities regulator. “We are warning people to be wary about being solicited to invest in real estate or infrastructure projects in India with promises of substantial […]

Madoff on Madoff: Wealthy clients and affinity networks used to the feed scheme

This is the final instalment in a five-part series on the exclusive Financial Times interview From Behind Bars, Madoff spins his story – the second interview Bernie Madoff has given since he was sent to jail for life for fraud charges in 2009. From the interview, we learned that he followed the classic route by […]