Watch out for miracle software that offers a return that is too good to be true

MONTREAL, June 18, 2012 /CNW Telbec/ - The Autorité des marchés financiers (the "AMF") cautions investors against solicitations carried out by foreign companies that offer Quebeckers access to software and investment systems in the derivatives market with the promise of substantial returns.

The companies solicit through such means as the telephone, e-mail, website advertising and social networking message postings. Generally, they offer access to a software or an investment system in exchange for payment of a few hundred dollars, or even thousands of dollars, while promising very attractive returns. Subsequently, these companies put investors in contact with a so-called brokerage firm to make a deposit for future transactions. As a selling point, these companies will usually use the possibility to be reimbursed if no profit has been generated upon the contract term.

When investors attempt to recuperate their investment, they are told their file is undergoing analysis or given any other kind of excuse. In most cases, investors are not able to recover their funds.

Recently, at least one Québec investor lost his investment after receiving a telephone call from CTI Group, a company that sells investment software. The latter put the investor in contact with Foremost Trading LLC, an entity that acts as a dealer for investors to negotiate futures and forward contracts, while using CTI Group software.

Since Foremost Trading LLC is not registered with the AMF, its activities on behalf of Québec investors may violate the laws administered by the AMF, in particular the Derivatives Act.

Reminder for investors
This type of solicitation, involving the purchase of a software or investment system to carry out successful trading activities, is often seen on the Web. The AMF reminds investors that it is important to be cautious when promised a return that is too good to be true. A basic investment rule should be followed: the greater the expected return, the greater the risk associated with it.

Before entrusting their savings to the person soliciting them, the AMF invites investors to ask five questions 5 bonnes questions to avoid financial fraud.

The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.

Information:

Media only:
Sylvain Théberge: 514-940-2176

Information Centre:
Québec: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
www.lautorite.qc.ca

SOURCE Autorité des marchés financiers

For further information:

Media only:
Sylvain Théberge: 514-940-2176

Information Centre: 
Québec: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
www.lautorite.qc.ca


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