VANCOUVER, Feb. 4, 2014 /CNW/ - The British Columbia Securities Commission is warning investors about what appears to be a "recovery room" scheme targeting investors who had purchased securities from Morgan Dragon Development Corp. Morgan Dragon is currently subject to an Ontario Securities Commission order that prohibits the company from trading in or acquiring securities, using exemptions, and acting as a registrant for five years.
The BCSC has learned that a Thai company called G.W. Trust and Transfer is directly soliciting Morgan Dragon investors by e-mail and phone, claiming that it is acting as a purchaser wishing to buy back the units/shares from investors. G.W. Trust and Transfer is offering high prices for Morgan Dragon securities, but investors are told that, in order to receive the funds, they must send money upfront for the purpose of paying taxes in Thailand. G.W. Trust and Transfer is not registered in any capacity under the B.C. Securities Act.
Recovery room schemes involve companies that contact investors who may be losing or may have lost money in a current investment with an offer to buy their shares at an inflated price or exchange them for shares in a different company. Once investors agree to the deal, the operators of the scheme ask the investor to first pay a fee for the transaction, or some other kind of cost to exchange the shares. The operators keep the fee, but do not repurchase the shares or issue the promised replacement shares.
The Alberta Securities Commission has issued a similar Investor Alert, which can be found here.
The BCSC is urging British Columbians and investors in Morgan Dragon who have been approached by G.W. Trust and Transfer, or have any information on the investment scheme described in this Investor Alert, to contact the BCSC Inquiries Line at at 604-899-6854 or 1-800-373-6393 (toll free).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information: Media Contact: Richard Gilhooley, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free)