The New Brunswick Securities Commission says that its staff is seeking cease-trade orders against several companies that have allegedly used boiler room tactics to push investments.
The NBSC will hold hearings to consider the allegations against three U.S. companies and one Toronto-based firm. NBSC staff allege that several New Brunswick residents were cold-called by representatives from the companies and that these representatives used high-pressure sales tactics to offer investments with the potential to earn extremely high returns from investments in oil well developments in Texas, or in gold and silver. The allegations have not been proven.
“These types of sales strategies are often used in boiler room-type operations,” said Rick Hancox, executive director of the NBSC. “By reporting their suspicions to us, these residents may help prevent other New Brunswickers from being harmed by potentially fraudulent investment schemes.”
A hearing has been set for April 4 to consider allegations against Texas Energy Management and Falcon Petroleum Resources, both of Texas; and Florida-based Secured Precious Metals, Inc.. No date has been set to hear the allegatiosn against Cache Metals RRSP Inc. (aka Cache Metals Inc., Caché Precious Metals Inc. and Cache Precious Metals Inc.), of Toronto.
The NBSC says that none of the companies involved are registered to sell investments in New Brunswick, and none have filed a prospectus or report of exempt distribution with the NBSC.