Over the past couple of months, securities regulators from different provinces issued a number of Investor Alerts and warnings. In this blog post, I have highlighted some recent alerts and warnings from regulators outside of BC.
Morgan Dragon Development Corp.
On January 28, the Alberta Securities Commission (ASC) issued an Investor Alert about a ‘recovery room’scheme that is targeting Morgan Dragon Development Corp. (MDDC) investors. The ASC received information that G.W. Trust and Transfer Services Limited, purportedly operating out of Thailand, was contacting MDDC investors to offer to buy back their shares.
In a recovery room, or ‘re-up’ scheme, victims are offered inflated prices for shares they own. Once an investor agrees to sell their shares, a contract is drawn up and they are instructed to wire a sum of money to an offshore bank account. The perpetrators withdraw the money, and the investor loses money again.
The ASC release followed an Ontario Securities Commission Investor Alertabout MDDC and its principals, John Cheong and Herman Tse.
Leonard (Lennie) Goldman and Glendale Growth & Trust
In early December, the OSC warned investors not to invest with Leonard (Lennie) Goldman and Glendale Growth & Trust. Newfoundland and Labrador’s Financial Services Regulation Division issued a similar warning in November and then followed up with enforcement action in December, issuing a permanent cease trade order against Glendale Growth & Trust, GT Serv Corp., Leonard Goldman and any other company or individual acting on their behalf.
Warnings from the ASC, AMF, and OSC
On December 12, 2013, the ASC warned that ThunderLight Entertainment appeared to be engaging in activities that may pose a risk to investors. The Investor Alert went on to say the ASC had received reports that this company, which is not registered with the ASC, solicited Albertans to invest in ThunderLight Entertainment securities.
On December 3, 2013, the Autorité des marchés financiers warned investors about solicitations promoting UFX Markets, a foreign currency-trading platform. In 2012, the Saskatchewan Financial Services Commission took action against UFX Markets.
Finally, the OSC added a number of names to its Investor Warning List in January. This list contains names of individuals and companies that appear to be engaging in activities that may pose a risk to investors.
You will find a more exhaustive list of Investor Alerts from other provinces on the Canadian Securities Administrators’ website in the Enforcement Section.
Learn about some of the ways you may seek recourse through a complaint, such as financial compensation
When I read the story about Anwar Badshah in the Surrey North Delta Leader, some obvious red flags leaped out at me. Last June, he pleaded guilty to three counts of fraud over $5,000 and was sentenced to 18 months of house arrest by a provincial court judge in Port Coquitlam. BCSC investigators described the Badshah promotion as a Ponzi scheme. […]