Maitland Capital and First Global Ventures investors at risk of being revictimized
Posted: March 26 2015
Winnipeg, MB; March 23, 2015 – The Manitoba Securities Commission (MSC) is warning investors of a "recovery room" scheme that is targeting Manitobans who have previously invested with Maitland Capital and First Global Ventures S.A.
The MSC has been alerted that PFS Investments Overseas Division, purportedly operating out of Florida, is contacting investors of Maitland Capital and First Global Ventures S.A. with offers to buy their shares or exchange them for shares in another company. Investors are told that they first must pay an upfront fee, sometimes in the thousands of dollars, before they can receive any money for their shares.
Securities commissions in Manitoba, Ontario, Alberta, New Brunswick and Saskatchewan and have previously issued orders to cease trade both Maitland Capital and First Global Ventures S.A.
The MSC is cautioning investors against participating in the offer or sending money to PFS Investments Overseas Division. The company is not registered to conduct business in Manitoba, and there are a number of red flags that lead the MSC to believe this is a recovery room scheme, such as:
- targeting past victims of an investment scheme;
- requesting investors’ banking information;
- pressure to act quickly;
- spelling errors in the documents related to the offer.
PFS Investments Overseas Division may be impersonating a genuine brokerage firm with a similar name: PFS Investments Inc. PFS Investments Overseas Division has no connection with, and is not to be confused with, the genuine PFS Investments Inc.
Recovery room schemes typically involve companies that contact the victims of investment schemes with an offer to buy their shares at an inflated price. Once an investor agrees to sell his or her shares, a contract is drawn up and the investor is instructed to wire a sum of money to an offshore bank account to cover business costs. The perpetrators withdraw the money that is sent to the offshore account, effectively victimizing the investor for a second time.
Manitobans who are contacted about selling Maitland Capital or First Global Ventures S.A. shares should call the MSC tip line at 1-855-FRAUD-MB to file a complaint or speak with an investigator. For more information on how to recognize scams and check the registration of a person or company offering investment products, visit recognizeinvestmentfraud.com.
The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.