Last week, the BCSC issued a panel decision finding four BC residents had perpetrated a “deliberate and well-organized” fraud in a Ponzi scheme that resulted in the loss of over US$10 million by more than 800 investors in BC and elsewhere.
Media, CTV in particular, researched the case and found several victims who were willing to talk about their experience. They spoke out in order to warn people not to make the same mistakes that they did. They cautioned people to be wary about falling for the promise of big returns.
It is hard for victims to talk to the public about what happened to them because, in one sense, they want to forget the whole ordeal. We think it is important to applaud those who are willing to talk about what happened to them. In this case, the Ponzi scheme started as an ‘investment club’. Investors were promised seven per cent return, resulting in compounded returns of more than 100 percent.
The lesson here is that high returns always present high risk and in an illegal ponzi scheme, it usually means that the investors will lose all of their investment.
The Canadian Securities Administrators (CSA) are kicking off Investor Education Month this October by encouraging investors to check the registration of any firm or individual selling securities or offering advice. “Through the registration process, Canadian securities regulators ensure individuals and firms meet specific qualifications and standards before they offer products or advice to investors,” says […]
The British Columbia Securities Commission added Imperia Invest IBC to its Investment Caution List after the U.S. Securities and Exchange Commission issued an Investor Alert warning investors about a possible advance fee scheme that specifically targets deaf investors. In October 2010, the SEC’s Office of Investor Education and Advocacy alerted investors about Imperia Invest IBC, after […]