The British Columbia Securities Commission (BCSC) and the Manitoba Securities Commission (MSC) are investigating an investment that offers people an unusually high annual return of 87.5%, and commissions for bringing in new investors.

The regulators have reports that residents of B.C. and Manitoba (as well as elsewhere in Canada) have been approached to invest in a “family and friends private placement program” in which Gold-Quest International, an offshore company, would trade in foreign exchange markets on their behalf.

In addition, persons purporting to represent Gold-Quest have told investors they can also earn money by referring new investors to the program. They are offered an immediate commission of 10% of the amount a referred person invests and an ongoing monthly commission of 4% for 12 months. These promoters are not licenced or registered to sell securities in either British Columbia or Manitoba, the regulators say.

Investors send their money — reportedly as low as US$500 — to California banks and receive information and documents back from Nevada-based operations. Investments can be made through online payment systems. Typically, promoters of the investment recruit investors through newspaper advertisements, word-of-mouth and special meetings.

Concerned investors or members of the public who have been approached or have information about this investment are urged to contact the BCSC or MSC, or their local securities regulator. The BCSC and MSC are actively investigating this matter.