When you’re choosing your investment adviser it should not be as simple as picking the first name that comes up in a Google search. You shouldn’t necessarily go with the first adviser you meet with either. We’re not saying that first adviser won’t be the right one, but don’t automatically go with the first one without doing your due diligence.
NSSC Blog: Before You Invest
According to the Canadian Securities Administrators (CSA) registrant misconduct is a violation of securities laws by a registered person or company. It can also include misconduct to fail to register or to fail to adhere to the conditions of a registration exemption.
So far our Fraudster Friday series have focused on some of the most famous fraudsters in history. You may not have known all the details behind the names Ponzi, Madoff and Bre-X, but most people have heard of them.
Illegal insider trading is the buying or selling of securities while possessing undisclosed material information about a company or fund. This material information could include financial results, operational events, management changes or other information that may impact the price.
Bertram Earl Jones ran a Ponzi scheme for decades in Quebec that cost his victims, including members of his own family, a reported $51.3 million Canadian.
In 1979 Jones began his own investment advising business. At the time he did not register with any securities regulator and he never would. Jones would go about offering investment advice and claim to sell securities unregistered for 30 years.
Illegal distributions refer to the sale of securities, usually shares, that have not complied with securities laws around registration, trading and/or disclosure.
The Bre-X Minerals Ltd. scandal has all the trappings of a Hollywood story. A fledging minerals company residing in the penny stocks reportedly strikes the largest gold claim in history tucked away in the jungles of Borneo. The gold claim was worth billions and sent Bre’X’s stock value soaring from pennies to hundreds of dollars. In the end it all turned to be fool’s gold, resulting in one the largest stocks scams and cases of mining fraud in Canadian history.
Last year during March we ran an extensive series on investment fraud, outlining common types of investment frauds, the red flags to watch for, and what to do if you think you are a victim of investment fraud. With March being Fraud Prevention Month, it’s the perfect time to deliver a quick review of investment fraud while also pointing you back to some of our older posts.