High returns: No risk
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. Get this. These 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 to the Madoff case (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. Earl Jones allegedly promised higher returns than the bank.
Have you seen any examples of promises too good to be true? If so please report them to the BCSC’s Inquiries.