Warning - Karatbars investment program
Thursday, March 20, 2014
Montréal – The Autorité des marchés financiers ("AMF") urges Québec investors to be cautious about an investment program linked to the German company Karatbars International GmbH whose investment products are primarily promoted through conferences, the Internet and social media.
With the company's "Affiliates" program, investors can make Internet-based purchases through Karatbars plans and they are encouraged to recruit two other Affiliates. These Affiliates are in turn encouraged to recruit two other Affiliates each, and so on. Affiliates are lured by the possibility of earning large payouts, in particular through a percentage of amounts collected from the Karatbars plans and gold products purchased by referrals.
The AMF reminds investors of the risks involved when investing in companies such as Karatbars that are not reporting issuers and do not hold AMF registration or authorization. Quebeckers should therefore be cautious with product offerings from Karatbars since they might incur losses that are not covered by the financial services compensation fund or deposit insurance.
The AMF is closely monitoring this matter and will take any measures deemed necessary in the event of violations under the laws it administers.
Reminder to investors
As part of fraud prevention month, the AMF wishes to remind investors of the importance of being cautious before making an investment (document in French only) regardless of where the firms or individuals offering investments are based. Investors should make sure that firms and individuals acting as intermediaries are authorized to do so by consulting the register on the AMF website or calling the AMF Information Centre.
The AMF further reminds consumers that the gold market in which Karatbars operates is a complex market. The value of gold can be influenced by social, political or economic events, as well as numerous other factors. This market is not for every investor, and if someone tells you otherwise, beware.
If you believe you have been defrauded through an investment in Karatbars, we urge you to contact the AMF Information Centre.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.
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