WINNIPEG, Sept. 24 /CNW/ - The Manitoba Securities Commission (MSC) and the British Columbia Securities Commission (BCSC) are warning investors who may have lost money in a York-Rio Resources Inc. investment that they could be targets of a 're-victimization' scheme in which investors are being contacted by an organization out of Japan identifying itself as Penn Capital Management Ltd.
The securities commissions have contacted, or have attempted to contact, 50 York-Rio investors in Manitoba and 165 investors in BC to warn them about the scheme but are issuing this warning for other potential victims. Penn Capital Management Ltd. is not registered with the MSC or the BCSC.
Penn Capital Management Ltd. has contacted investors in York-Rio Resources Inc. with an offer to repurchase shares in what appears to be a 'recovery room' or 're-up' scheme. Potential victims who are prepared to pay a fee to the operators of the scheme are offered an inflated price for their shares. The operators of the scheme keep the fee but do not repurchase the shares. Although MSC and BCSC investigators have been contacting potential victims to warn them of the scheme, staff at the Commissions are concerned other shareholders have been or may be contacted. If you have been contacted you should immediately notify your local securities regulator and ask to speak to an investigator. Other companies may be attempting to carry out the same offer. The MSC and BCSC are warning the public to be very cautious before making any investment.
Manitoba, British Columbia, Alberta, Saskatchewan and Ontario Securities Commissions have issued orders to cease trade York-Rio Resources Inc.
This scheme is commonly known as "recovery room" or "re-up". Victims of investment schemes are offered inflated prices for their shares. Once the investor agrees to sell their shares a contract is drawn up and they are instructed to wire a sum of money to an offshore bank account to cover business costs. The perpetrators withdraw the money that is sent to this offshore account and the victim for a second time loses money.
The Manitoba Securities Commission is a special operating agency of the Government of Manitoba that protects investors through educational programming and promotes fair and efficient capital markets throughout the province.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province.
SOURCE British Columbia Securities Commission
For further information: For further information: Inquiries: Len Terlinski, Investigator, Manitoba Securities Commission, (204) 945-2556, 1-800-655-5244; Paul Bansal, Investigator, British Columbia Securities Commission, (604) 899-6611, 1-800-373-6393; Media Inquiries: Ainsley Cunningham, Manitoba Securities Commission, (204) 945-4733, 1-800-655-5244; Ken Gracey, British Columbia Securities Commission, (604) 899-6577, 1-800-373-6393