Regulators in New Brunswick have issued permanent cease trade orders and market bans against two companies and two men that, they say, appear to be part of a boiler room operation.
The orders were issued following two hearings both heard before the provinces’ Financial and Consumer Services Tribunal on Oct. 21, 2014.
The regulators issued the orders against London, UK-based Sachs International S.A. and Charles King, a purported senior adviser with Sachs; and, Costa Rica-based Stratus Financial Group International, and Ken Powers, a representative of Stratus.
The FCNB says that the tribunal found in both cases that none of the respondents are registered to sell investments in New Brunswick. “The panel found that the respondents appear to be a boiler room,” it said, noting that the cease-trade order may help protect investors from suffering losses.
The regulator reports that it investigated the respondents after receiving complaints from two investors who were cold-called. It says that King contacted one of the investors on behalf of Sachs International about investing in gasoline/fuel futures; and the other was contacted by Powers, on behalf of Stratus Financial Group, about investing in heating oil contracts.
“Being an informed investor is the best defense against investment fraud,” said Jake van der Laan, director of the FCNB’s enforcement division. “Before sending money, particularly out of country, it’s important to check registration of the person selling investments and ask questions. If an investment seems too good to be true, it usually is.”