The Autorité des marchés financiers (AMF) Wednesday issued a warning to investors about telephone solicitations to invest in the derivatives market through an unregistered company, Wealth Capital Corp.
Wealth Capital, which appears to based in Hong Kong, was also recently slapped with a temporary cease trade order by Saskatchewan’s Financial and Consumer Affairs Authority (FCAA), along with companies known as Ocean International Ltd. and Manhattan Capital Corp., which seem to be related to Wealth Capital.
BCSC warns investors about three firms
On Sept. 7, the FCAA extended its temporary CTO (which was first granted in August) against the firms, and several individuals, until April 2013. In that order, it said that the respondents have not sought a hearing of the terms of the initial cease trade order, and that the regulator’s staff sought more time in order to complete their investigation.
On Wednesday, the AMF said that at least one Quebecker has received persistent and aggressive telephone calls from a Lucien Castel and another alleged representative of Wealth Capital, pressuring them to invest in the derivatives market, specifically the gold options market. The original FCAA order also indicated that representatives from the firm were soliciting investments in gold options, and other over-the-counter securities.
The AMF warning says that neither Castel or Wealth Capital are registered with the AMF, and so, these solicitations of Quebec investors could contravene its laws. It also notes that the Hong Kong Securities and Futures Commission added the names of these three entities to its alert list in September.