Investor Alerts
The Manitoba Securities Commission
1130-405 Broadway
Winnipeg, MB
R3C 3L6
October 3, 2002
Public at Risk From a Pension Plan Investment Scheme
Winnipeg – The Manitoba Securities Commission is warning the public to be on the look out for a scheme involving the conversion of locked-in pension monies into shares and loans. The Commission is currently investigating a classified newspaper advertisement that was placed in the Winnipeg Sun between September 11th through to the 27th, 2002. The scheme is being operated out of Montreal, Quebec. Investors replying to the advertisement receive an application to transfer their locked-in pension money to a brokerage firm in Quebec.
Investors are told that the brokerage firm invests the pension funds into a newly formed company. The investor receives shares of this new company and a loan, based on a percentage of their pension value.
The individuals operating this pension plan scheme do not explain to the investor that the shares they receive have not been qualified for sale in Manitoba and will likely never have any value. Also, the operators of this scheme are not registered to sell securities in Manitoba. As a result the investor has lost the value of his or her pension and may face tax consequences.
Any individual who has applied to the advertisement, is asked to contact Jason Roy, Investigator with The Manitoba Securities Commission, at 945-4116. If you live outside Winnipeg, you can contact The Manitoba Securities Commission toll free (in Manitoba) at 1-800-665-5244.
Contact:
Ainsley Cunningham
Education and Information Coordinator
(204) 945-4733,
aicunningh@gov.mb.ca