Appendix D. Working together: The 2007 Investor Forum

Similar documents
Protect Your Money INVESTOR OFFICE

A Losing Bet: Binary Options

A Losing Bet: Binary Options

Protect your money: Avoiding frauds and scams

Investment Attitudes: Focus on Chinese Language Investors

FORECLOSURES. I m behind in my mortgage payments, what should I do?

FINANCIAL INTELLIGENCE CENTRE (FIC) REPUBLIC OF NAMIBIA P.O.BOX 2882, Windhoek Tel: , Fax

What The Public Should Know About Using Tax Return Preparers. Eric M. Bielitz, Esq. October 26, 2018

Better Business Bureau

716 West Ave Austin, TX USA

Investing module. Trainer s introduction. Learning objectives

Terms of Business. Protection. It s in our nature. Why have terms of business? Who is FBD Insurance plc?

Investment Fraud Prevention

MAC Workshop FTC Enforcement Update November 13, 2018

Additional Information on the Dirty Dozen

Fraud Schemes and their Characteristics

PROTECTING YOUR FINANCES HOW TO AVOID INVESTMENT FRAUDS AND SCAMS

FIRST HOME BUYERS HANDBOOK SUPPORTING YOU THROUGH EVERY STEP

What every older Canadian should know about Managing and Protecting their Assets

Chapter 2 Skimming 1

Ponzi schemes and other investment scams

Important Information on Penny Stocks

Avoiding Investment Scams

Financial Statement Fraud

c» BALANCE C:» Financially Empowering You The World of Credit Reports Podcast [Music plays] Nikki:

Scam Type #1: Wire Fraud Scams

English. What Seniors Need to Know About. Annuities 06/06

Slide 1. Slide 2. Slide 3. Identity Theft Coverage. Today s Agenda. What is Identity Theft? What is Identity Theft?

Investing As We Age. Innovative Research Group, Inc. Toronto Vancouver

Red Flag Rule Procedures Under Princeton University s Identity Theft Prevention Program Effective: December 31, 2010

Global Policy on Anti-Bribery and Anti-Corruption

Information booklet for small and medium enterprises (SMEs) in financial difficulty

Having a Problem with a Debt Collector? You Also Have Protections

INSIGHTS WEST Survey of Canadians on Retirement - December 14, 2016

Visit for any help. You can alternatively reach us by sending to

HOW YOU CAN INVEST YOUR MONEY IN TODAY S MARKET THROUGH PRIVATE MONEY LENDING

BEWARE OF SCAMMERS AND FRAUDSTERS

Money Mule Awareness

Red Flag! Now What? An SME s Guide for FACTA Red Flag Compliance. see} white paper

Registration Requirements

AffordableEducators (800)

Securities Fraud For Louisiana Law Enforcement. Securities Division

716 West Ave Austin, TX USA

PENNY STOCK RISK DISCLOSURE STATEMENT

LOAN OFFICER NAME: OFFICE PHONE: CELL PHONE: FAX: ADDRESS: AFFILIATE NAME: COMPANY NAME: BROKER NAME: BROKER PHONE: BROKER

How to Freeze Your Credit Files

The Cost of Payday Loans

Investor Protection: Using Social Influence to Combat Investment Fraud

Corporate Law Points & Business-Building Points Key issues for start-up or early stage companies:

FOUNDATION SERIES ON DEMAND. Fraud Red Flags Workbook

LOAN OFFICER NAME: OFFICE PHONE: CELL PHONE: FAX: ADDRESS: AFFILIATE NAME: COMPANY NAME: BROKER NAME: BROKER PHONE: BROKER

OSC Staff Notice

MONEY. GET IT, KEEP IT, GROW IT FINANCIAL LITERACY Business Basics for Innovation

Home Renovations GET WRITTEN ESTIMATES. A written estimate should include: The project start and completion dates. Itemized costs and the total price

Palomar Community College District Procedure AP 5900 PREVENTION OF IDENTITY THEFT IN STUDENT FINANCIAL TRANSACTIONS

Guide to Individualized Funding

Fraud Examination. Prevention, Detection, and Investigation. Steven M. Bragg

Financial Abuse Meeting Program

INTRODUCTION TO FRAUD EXAMINATION

Innovative Research Group, Inc. Toronto Vancouver Key Highlights. CSA Investor Education Study 2016.

Remarks of. David S. Ruder Chairman. United States Securities and Exchange Commission

Policies and Procedures. Code of Ethics Policy

Protecting Yourself Against Frauds & Scams

Mission. About the Office of Financial Regulation

Services and Features

Which?, 2 Marylebone Road, London, NW1 4DF Date: 13 February 2017 Response to: HM Treasury consultation on pension scams

Benefits, Credits, Services. Overview of CRA s outreach resources

Flinders Policy Against Corruption and Bribery

- Due diligence process is a continuous process customer service representatives (C/S Rep.) need to be aware of:

SAAO Capital Private Limited

IDENTITY THEFT RED FLAGS AND RESPONSES

Fast Facts. Florida office of Financial regulation. Smart - Efficient - Effective

Obtaining a Trading Exemption or Rule Interpretation

FRAUD ALERT! DETECTING AND PREVENTING SCAMS IN REAL ESTATE TRANSACTIONS

ID Theft Toolkit and Affidavit

The Risk of Economic Crime

HOW YOU CAN SAFELY INVEST YOUR MONEY IN TODAY S MARKET THROUGH PRIVATE MONEY LENDING

Disappearing second mortgages and other similar "creative" financing devices

716 West Ave Austin, TX USA

LexisNexis Developing an Effective Red Flags Rule Program

M O D I F I C AT I O N PA M P H L E T

Benefits Handbook Date March 1, Identity Theft Plan MMC

2015 Bank Secrecy Act

LOUISIANA DEPARTMENT OF INSURANCE. Consumer s Guide to. Auto. Auto Insurance. James J. Donelon, Commissioner of Insurance

Amber Mahaffey

Department of Corporations

TOP 10 TIPS TO PROTECT YOUR

Your Credit Score What It Means to You as a Prospective Home Buyer

INVESTIGATING CRIMES IN THE CAPITAL MARKETS. Karumba Kinyua Risk Investment Strategy Expert Pinehill Consulting Wednesday 24 th October 2018

16 CFR Duties regarding the detection, prevention, and mitigation of identity theft.

Bullet Point: Be cautious of anyone offering to save your home from foreclosure

The Interagency Guidelines on Identity Theft Detection, Prevention and. Mitigation, commonly referred to as the Red Flag Rules, require each financial

GET WRITTEN ESTIMATES. A written estimate should include: The project start and completion dates. Itemized costs and the total price

Foreign Corrupt Practices Act Policy August 16, 2017

Equifax Phone: Address: Office of Fraud Assistance P.O. Box Atlanta, GA Internet:

Identity theft can occur even if you have been careful about protecting your personal information.

RED-FLAGGING. Financial fraud 5-STEP. You ve been offered an attractive financial product? Your personal anti-fraud guide.

CONSUMER CREDIT STARTER GUIDE

Benefits Handbook Date November 1, Identity Theft Plan MMC

Finacial Statement Fraud. Peter N Munachewa, CFE Risk Management Consultant

Transcription:

Appendix D Working together: The 2007 Investor Forum 0

OSC Enforcement Branch Boiler Room Unit Illegal Distributions Misrepresentations Fraudulent Offerings Scott Boyle, Assistant Manager, Investigations Enforcement Branch 1

Boiler Rooms Term used to describe a fraud scheme in which salespeople are hired to call unsuspecting individuals and push investment opportunities. High pressure calls are often used to pitch worthless or nonexistent securities. 2

Investment Opportunity Pre-IPO opportunity Listing on exchange pending Limited Shares available Exclusive offering 3

Investment Opportunity Little or no risk Sure thing Double your investment Guaranteed 4

CSA 2007 Investor Study 1 in 20 Canadians Victim of investment fraud 40% of Canadians approached with investment fraud 5

CSA 2007 Investor Study Victims 22% reported a one time investment fraud 28% reported a repeat investment fraud 6

OSC Scam Inquiries 2000-2007 2,500 2,000 1,500 1,000 500 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 7

OSC Boiler Room Unit Identify Fraudulent & Scam Offerings Investigate Boiler room activities Expose individuals involved 8

OSC Boiler Room Unit Disrupt Search warrants inspections Prevent Cease Trade Orders Prosecute Section 122 & 127 9

Victims of Investment Fraud FSA 2006 Investment Experience? - Identified themselves as: experienced investors - 41% investing for greater than 11 years 10

Victims of Investment Fraud Demographics? 26% were between 51-60 years old 38% older than 60 years of age 11

Victims of Investment Fraud 81% male Gender? How Much? Average investment = $40,000 12

Victims of Investment Fraud How? 57% report first contact was by telephone Victims were often pursued by boiler room for more than 6 months 26% reported contact by four or more boiler rooms 13

Victims of Investment Fraud 15% of victims were persuaded to invest on the FIRST call!!! 14

Impact of Investment Fraud Victims of less than $10,000 63% less willing to make future investments 15

Impact of Investment Fraud Victims of greater than $10,000 75% are less willing to make future investments 16

Impact 49% introduced by friend, co-worker, neighbour or family 75%of victims no recovery of any money 17

Creating the illusion Adoption of an existing company identity Fraudulent Web sites Identity concealing e-mail addresses Prepaid Cellular telephones, VOIP 18

Creating the illusion Post office boxes (suite 6131) Virtual Office locations Business Centres Document illusions backdating Fictitious investment advisors & staff 19

The Hook Ground Floor Opportunity, Pre IPO This is how the rich get richer My active investors are coming on board with some very large positions Time sensitive Act now or miss out AGAIN Restricted offering can only give you 10,000 shares 20

Qualifier / Closer / Loader Qualifier: First Contact confirm identity and interest Closer: Subsequent calls to victim; Makes the sale Loader: Ladders victim into successive purchases 21

Selling Techniques Working from prepared scripts Refined to adopt successful selling techniques Use of psychological tools to disarm potential investors Honesty / credibility / references 22

Psychological tools We are in this together I personally have over $50,000 in XYZ Corp I have my whole family invested in this I m working for you 23

The Ladder Start small and let me prove myself Price increase - Opportunity to purchase more stock instant paper profit 24

The Ladder New opportunity repurchase first issue at $$ profit $$ Sell second fraudulent issue with a minimum size block purchase Advance fee scam Contact investors to sell worthless stocks for an administrative fee 25

Red Flags Exclusive opportunity Time sensitive Information is only available from seller 26

Red Flags Foreign jurisdiction involvement Off-shore banks (even US) Foreign brokerage firms Where are they registered? 27

Protect yourself Hang Up! Investment professionals don t create relationships over the phone Due Diligence? Confirm information from legitimate 3rd parties 28

Contact the Regulator Provincial regulators can confirm registration of individuals or firms Report to the regulator the contact and provide information 29

OSC Contact Centre www.osc.gov.on.ca inquiries@osc.gov.on.ca Toll free 1-877-785-1555 416-593-8314 30