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Our Best GIC Rate as of
August 7, 2009
is
4.00%
(rates subject to change without notice) |
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 Your
Money Matters
August
2009 Issue
The Earl Jones Story and how to avoid being a victim
On
July 13, 2009 Quebec’s securities regulator has ordered the assets
of a small Montreal investment firm frozen after several investors
came forward complaining they had stopped receiving payments and the
owner of the firm could not be reached.
L’Autorité des
marchés financiers (AMF) said it has ordered a stop to all activity,
direct or indirect of the Earl Jones Corporation in order to probe
its assets.
The AMF said
based on information it has collected, Jones is suspected of
diverting between 30 million and 50 million dollars in investments
belonging to about 50 investors. They suspect that Jones’ business
appears to resemble a Ponzi scheme (see definition below).
Jones was arrested July 27, 2009 (he turned himself in after
disappearing for about 3 weeks), when he was formally charged with 4
counts of each fraud and theft in connection with 4 former clients.
He was released on $30,000. bail and set to appear in court
September 28, 2009. On July 29, 2009 the company known as Earl
Jones Consulting was declared bankrupt by Quebec Superior Court. 60
corporate bank accounts had less than a total of $50,000. but the
corporate records for the company have disappeared according to
Gilles Robillard, bankruptcy trustee investigating the case.
A Ponzi scheme is a
fraudulent
investment operation that pays returns to separate investors
from their own money or money paid by subsequent investors, rather
than from any actual profit earned. The Ponzi scheme usually offers
returns that other investments cannot guarantee in order to entice
new investors, in the form of short-term returns that are either
abnormally high or unusually consistent. The perpetuation of the
returns that a Ponzi scheme advertises and pays requires an
ever-increasing flow of money from investors in order to keep the
scheme going.
The system is destined to collapse because the earnings, if any, are
less than the payments. Usually, the scheme is interrupted by legal
authorities before it collapses because a Ponzi scheme is suspected
or because the promoter is selling unregistered securities. As more
investors become involved, the likelihood of the scheme coming to
the attention of authorities increases.
How do you protect yourself
as an investor?
Decide what’s
important to you as an investor. How much risk are you willing to
take?
How much do you know about investing? Inform yourself about the
basics of investing. Find out what the current returns are for
different types of investments. If you are presented with an
investment which offers returns that are too good to be true,
beware.
Keep track of your investments. Look at your statements and ask
questions if you need clarification.
Make sure your advisor is properly qualified and is registered to
provide advice to sell investments. Here is how you find out:
In Ontario, licensed advisors need to be registered with the Ontario
Securities Commission
www.osc.gov.on.ca . To the left, there is a box titled “for the
Consumer”, under which, you click on Dealers and Advisors,
registrant lists – Enter dealer name ie: (Investia) and/or last name
of advisor ie” (Wever) or (Shannon) and your advisor’s name will
come up, click on your advisor’s name and you will get confirmation
of what your advisor is registered to sell.
In Quebec, advisors are registered with Autorité des marchés
financiers (AMF)
www.lautorite.qc.ca and the procedure is similar.
The
Money Concepts team are all licensed advisors. We take the
relationship with our clients seriously. We abide by strict rules of
honesty, integrity and commitment to our clients. We strongly
believe that these kind of "non-licensed criminals" should be
prosecuted to the fullest extent of the law.
Theresa Wever and the Money
Concepts Team.
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Please read the
prospectus before investing. Mutual funds are not guaranteed, their
values change frequently and past performance may not be repeated. |
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Russell Location |
Vankleek Hill
Location |
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1087 Concession Street, P.O. Box
269
Russell ON K4R 1E1
Tel: (613) 445-8624 |
116 Main Street
East, P.O. Box 459
Vankleek Hill, ON K0B 1R0
Tel: (613) 678-3861 |
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Toll-Free:
1-800-250-5557 -
www.moneyconceptsrv.com |
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