Red Flags That Can Signal Fraudulent Investment Schemes

(February 22, 2008), Winnipeg, MB - The Manitoba Securities Commission (MSC) is alerting the public to the fact that fraudulent investment schemes usually exhibit one or more of the following red flags:

• Promise of high returns coupled with low or no risk
• Great investment opportunity – your friends can’t be wrong
• Secrecy – an ‘insider’ opportunity
• Tax-free investment or use of a structure to evade taxes
• Lack of receipts or documentation about the investment

“Our research tells us few people are reporting investment fraud to the proper authorities,” says Len Terlinski, Investigator with the Commission. “The MSC is urging people to report suspicious activity. This information can help us act more quickly to disrupt and stop the activity, and prevent investors from being victimized.”

People are encouraged to report suspicious investment activities, problems with investment or concerns about an adviser to the MSC at (204) 945-2548 or toll-free in Manitoba 1-800-655-5244.

The MSC is a special operating agency of the Government of Manitoba responsible for regulating trading in securities within the province. www.msc.gov.mb.ca

CONTACT:

Ainsley Cunningham, Education and Information Coordinator The Manitoba Securities Commission (204) 945-4733 Ainsley.cunningham@gov.mb.ca