Submitted by nsscadmin on
Part of the Nova Scotia Securities Commission’s mandate is to protect Nova Scotia investors. One of the ways we do that is by issuing investor alerts. You can find all the alerts we’ve issued for the last six years on our Investor Alert Database.
During Fraud Prevention Month, to try and spread further awareness about the companies and people we have issued alerts for, we’ll review the Investor Alerts we issued during the first quarter of 2022. During that time, we issued two alerts and three fraud-related releases.
CoinRise (www.coinrise.ca) is not registered to engage in the business of trading in securities or derivatives in Nova Scotia. CoinRise claims to be Canada’s fastest growing crypto trading platform. It also claims to offer wealth management and investment banking services, and to be located in Halifax, Nova Scotia.
At least one individual invested funds with CoinRise. While this investor’s account showed substantial gains on the principal investment, the investor was only able to withdraw a small amount of the reported returns. Further withdrawal requests were ignored.
When opening the account, the investor was required to provide personal information including a driver’s license, passport, and credit card, risking financial loss and identity theft.
CoinRise has also been named in an investor alert from the Financial and Consumer Affairs Authority of Saskatchewan (FCAA). At that time, CoinRise claimed to be located in Regina, Saskatchewan. After that alert was issued in December, CoinRise altered its stated location to Halifax.
Investor Alert for GoldBachInvest
GoldBachInvest (www.goldbachinvest.com) is not registered to engage in the business of trading in securities or derivatives in Nova Scotia.
GoldBachInvest claims to be the world’s most popular trading platform providing investors with access to stocks, indices, crypto, foreign exchange, commodities, and other financial instruments. It also claims to be an award-winning broker registered and located in the Marshall Islands.
At least one Nova Scotia resident lost money after investing with GoldBachInvest. Requests for withdrawals and return of funds were ignored. After the investor ceased contact with GoldBachInvest, GoldBachInvest still managed to obtain more money from the investor’s bank account.
Top Investor Threats of 2022
In January the Commission and securities regulators across North America released a list of their Top Investor Threats of 2022. Included in this list were:
1. Investments tied to cryptocurrencies and digital assets
2. Fraud offerings related to promissory notes
3. Money scams offered through social media and internet investment offers
4. Financial schemes connected to Self-Directed Individual Retirement Accounts
5. Spoofing website
Read the full release to learn more about these threats and how to protect yourself.
Warning about fraudulent investments involving crypto assets
Also in January the Canadian Securities Administrators (CSA) issued a release warning investors about an increase in fraudulent investment solicitations involving crypto assets. The release included examples of ways fraudsters are targeting investors and tips on how investors can spot and avoid fraud.
Warning about romance scams
In February the CSA issued another release warning investors about an increase in romance scams, and a connection between romance scams and investment fraud. The release includes several examples of tactics fraudsters are using when targeting victims of romance scams.