Investor Alert: Watch Out For High-yield Investment Programs
VANCOUVER, March 22, 2013 /CNW/ - The B.C. Securities Commission is warning investors about Internet-based "high-yield" investment promotions targeting British Columbia residents.
Recently, the BCSC became aware of three entities - Lucra Fund, Profitable Sunrise, and Goldenarium - offering unregistered, high-yield investments through e-mail, social media channels, and their own websites.
On March 11, 2013, the commission became aware of Lucra Fund, after a BCSC staff member received a promotional e-mail. The sender of the e-mail wrote that Lucra Fund offered 5.5% daily returns, and promised a referral commission. The Lucra Fund website stopped working soon afterwards.
On March 12, 2013, the BCSC issued an Investor Alert about Profitable Sunrise, an entity that claimed to provide short-term bridge loans that would pay a "risk free" return of between 1.6% and 2.7% per business day on a 180- to 240-day term.Regulators across North America issued similar alerts, and the North Carolina Securities Division issued a Temporary Order to Cease and Desist against Profitable Sunrise and its agents. The BCSC also received reports that BC residents wired money to Profitable Sunrise. On March 19, 2013, BCSC staff became aware of what appears to be a BC-connected promotion of Goldenarium through Twitter. Similar to Profitable Sunrise, this high-yield investment promotion offered a minimum investment of $10 and high daily returns. It also offered a referral fee. The Goldenarium website no longer works, and people on numerous Facebook pages connected to the scheme are questioning whether the entity will reactivate its website. The BCSC contends that the returns offered by all three of these entities are so high that they cannot be earned through legal means. The commission urges BC residents to use extreme caution if approached by anyone offering this type of investment.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV