MY TOWN

Not unlike many other frauds and scams those involving investments appear to be on the increase. Given this trend it is important for those that are either involved in investments or are considering becoming involved to follow some very important steps.Ensure that what is being offered as an investment is indeed just that and not some scheme designed to create profit for just those offering the opportunity. Be extremely cautious of those “get rich quick” schemes such as guaranteed high return with no risks. The experts all agree that there is no such thing and that the higher the return there is usually a higher risk. Unfortunately these types of offers are accompanied by high pressure sales that typically try and reduce the time for you to make good decisions.Be cautious of the sales pitches that include you as the “select few” who are being provided with the skills and knowledge of making huge profits. The person offering you this opportunity often indicates this is a special deal and that a secret market is involved. Again, according to the experts there is no secret prime market and any indication there is should be treated as a red flag. Another aspect of investment fraud that has increased is affinities fraud where an individual targets specific religious, ethnic, or cultural groups and gains the confidence of the group itself. Once entrenched these people begin to take advantage of the friendships they establish and use the trust they build to convince other people and their friends to participate in various lucrative investment opportunities. Unfortunately these investment opportunities can be bogus resulting in significant loss of money with no opportunity for recovery.According to the BC Securities Commission before investing you should know your investment goals, what your risk tolerances are and the limits of your investment knowledge. You should also know all aspects of the investment opportunity including the expected return, risk and liquidity. Perhaps even more important you should know your investment advisor. For further information I would suggest you visit the BC Securities Commission website at www.bcsc.bc.ca. Another excellent web site for this type of information is: www.rcmp-grc.gc.ca/scams/investment_fraud_e.htm. If you have any particular concerns or questions you feel would make an interesting article please make contact with me, Terry Pakenham, at my fax line 260-5866, or my direct office line at 260-5276.