The New Brunswick Securities Commission has issued a permanent cease-trade order against a couple of Asian firms that have allegedly been aggressively soliciting investors in several provinces.
A panel of the NBSC has cease traded MI Capital Corp. of Hong Kong and One Capital Corp. Ltd. of Singapore, following a hearing that was held on June 11. Commission staff sought the order following complaints from investors, and its staff alleged that salespeople purportedly acting on behalf of the two companies solicited at least five people to invest in gold options with repeated, persistent telephone calls.
No one appeared on behalf of the companies at the hearing, and the NBSC says that neither company is registered to trade in the province.
Earlier this month, the Manitoba Securities Commission (MSC) also issued a warning about MI Capital soliciting investors in that province, and the BC Securities Commission has placed it on its “investment caution list”.
The MSC also reports that the firm’s website is essentially the same as a website used by Asean Commodities Inc. (also known as Asean Finance Corporation Limited, Asean Commodities Inc. Limited and Asean Commodities Inc.), which the Australian Securities and Investments Commission (ASIC) has issued warnings about.
“We encourage any New Brunswick resident who has been approached by or has provided money to these respondents to contact us,” said Rick Hancox, executive director of the NBSC. “The more information we have, the better chance we have of taking action against any illegal activity affecting our capital markets.”
“New Brunswickers should be particularly suspicious of people offering too-good-to-be-true deals over the phone,” Hancox said. “Once money is sent overseas, there is little we can do to recover an investor’s losses.”
Other provincial securities regulators are expected to seek reciprocation of the NBSC cease-trade orders on MI Capital and One Capital.