The New Brunswick Securities Commission reports that it has issued a temporary cease-trade order against several firms and individuals while it investigates alleged unregistered trading.
The order directs the officers, directors, employees and/or agents of Jabez Financial Services Inc., JFS Credit Union, JFS-INC.NET, and three individuals to cease trading in all securities. Jabez Financial Services is a Panama based company and JFS Credit Union presents itself as based in Sweden, the NBSC says.
The order, which is effective immediately, was issued by the NBSC following a hearing held October 20. It reports that its investigation revealed that the respondents were trading in securities without having been registered to sell securities or having filed a prospectus, in violation of the Securities Act. Jabez Financial Services is not registered to sell securities in Panama either, it says.
This temporary cease-trade order is an interim measure taken by the commission, pending completion of the investigation. At a hearing held October 30 counsel representing all parties requested an adjournment to further prepare for the proceedings, it said. The adjournment was granted and a hearing is set for December 13. The temporary cease trade order was extended until that time. At this point, no allegations have been made, and nothing has been proven.
“This scheme is largely internet based and offers ‘members’ dramatic rates of return from 2% to 10% per month” said Rick Hancox, executive director of the NBSC. “This solicitation has all the red flags that investors should be concerned about; unrealistic high rates of return, secrecy, and no disclosure or particulars provided about the investments. We have reason to believe that at least 15 New Brunswick residents have invested money in this scheme.”
The commission recently published a list of common investment traps to help New Brunswick investors protect themselves against investment fraud. ”Scams come in many disguises, and are constantly evolving, but they all share a common goal of separating victims from their money” says Hancox.
NBSC issues cease-trade order against Jabez Financial
Regulator investigating alleged unregistered trading
- By: James Langton
- October 31, 2006 October 31, 2006
- 10:10