The Alberta Securities Commission (ASC) is warning investors to be wary of promoters using seminars, e-mails and cold calls to sell unregistered securities in a company developing real estate in Mexico.
Kelly Friesen of Warman, Sask. and Mexico-based Landbankers International MX, S.A. de C.V. are currently under a cease trade order in Saskatchewan related to allegations they made prohibited representations and sold Landbankers securities without registration.
The ASC has learned that Landbankers and Friesen held at least one seminar in Alberta soliciting investment in the Landbankers Mexican real estate venture. Neither Landbankers nor Friesen are registered with the ASC to operate in Alberta.
To help the ASC protect investors, anyone who has knowledge about this type of investment seminar is asked to contact the ASC Public Inquiries group at 1-877-355-4488.
“Investors have to protect themselves and do their homework,” says ASC Executive Director Dave Linder. “Check out the investment opportunity and the company and agents soliciting the investment — particularly when dealing with an unregistered offshore company.”
According to the ASC, investment “Red Flags” to watch for include:
- Paid advertisements that are designed to look like legitimate news articles.
- Talk of tax avoidance, moving money offshore or using RRSP eligibility as a hook.
- Above average returns with little or no risk.
- Offer of loans to cover both the investment and further investment seminars.
- Claims of a secret or exclusive technique for building wealth.
- Limited time offer that discourages investors from getting independent advice or checking further with provincial securities commission.