You’ve been offered a seemingly
attractive investment?
Here are 5 steps to follow to help you determine
possible fraud. Read the guide to learn more about fraud at each
step.
 Is the person offering you the
investment
authorized to sell investments?
View the register of firms and individuals authorized to
practice.
 Were you provided with full written
information on the investment?
Also useful is
the brochure Prospectuses made clear.
 Is the investment being offered too good to be
true?
 When you were offered the investment,
was this typeof statement made to you?
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Did
the person offering you the investment behave in the following
manner?
- Refused to say which firm he worked for or tried to
change
the subject after providing only scant information.
- Asked you to keep matters secret.
- Told you that a regulatory agency had “approved” an
investment.
- Pressured you to invest in the proposed offering.
For a copy of the brochure Red-flagging financial fraud, contact the AMF
Information Centre.
Classic frauds
Here are two classic fraud tactics. To learn more, see
10 classic frauds in the guide.
Ponzi scheme
The Ponzi scheme can take several forms. It consists of taking an
investor’s money to pay bogus returns to other investors or
simply to reimburse investors who want their money back. Fraudsters
can also give the false impression that the investment is
generating good returns and that you will have no problem
recovering your money.
Affinity groups
Fraudsters associate with people who share the same beliefs or even
interests in order to build their credibility. They won’t
hesitate to boast about their wealth and success, at first subtly,
then with greater fanfare. They forge ties with you, after which
they propose “outstanding investments.” In some cases,
they will ask you to keep the matter quiet, as this is a golden
opportunity they only want to share with their friends. In reality,
the fraudster will be the only one to benefit from this golden
opportunity!
You want to report possible fraud? Contact the AMF Information
Centre. The information could be useful for AMF's efforts to better
protect consumers.
Information
Centre
Monday to Friday, 8:30 a.m. to 5:00 p.m.
Québec: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
Fax: 418-647-9963
E-mail: information@lautorite.qc.ca
