The IPO Effect

Investment scamsters know that the promise of an impending IPO puts dollar signs in the eyes of prospective investors.

You don’t have to know much about investing to know that owning Facebook shares before the stock goes public would put money in your pocket. Imagine being one of the people who owned shares of Microsoft or Apple in the days before the initial public offering (IPO) for those companies. Investment scamsters know that the promise of an impending IPO puts dollar signs in the eyes of prospective investors. Regulators in Alberta believe that they have caught a company taking advantage of this “IPO effect.” According to Business Review Canada: (more…)

Alberta Regulators Halt Alleged Bridge Financing Ponzi

If you know of an investment making the same claim, please report it to local regulators.

TransCap Corporation came into existence in 2001. Operating from headquarters in Calgary, Alberta, it traded bonds and provided bridge financing.  A related company, Strata Corporation, came along in 2008 with a stated purpose of raising funds to loan to TransCap. The Alberta Securities Commission alleges that both companies were part of a Ponzi scheme that reaped more than $50 million. According to SunNews: (more…)

Ninja Appears in Ponzi Case

Those who operate these scams have imaginations as big as their appetite for money.

In September 2009 we wrote a three-part blog series on the Syndicated Gold Depository, S.A. (“SGD”) Ponzi scheme,which bilked more than $100 million from more than 3,000 investors across the globe.  According to the Royal Canadian Mounted Police (RCMP), Gary Sorenson and Milowe Brost lured people into investments in SGD which was supposed to loan investor money out to another company, Merendon Mining Corp. Ltd., (MMC) at interest rates that would provide a healthy return for investors.  The SGD scam operated for more almost ten years, from 1999 to 2008.   The RCMP arrested Brost but took longer to track down Sorenson who had a home in Honduras.   (more…)

Lessons from the SGD Ponzi (Part 3)

We are drawing lessons from the $100 million Syndicated Gold Depository, S.A. scam. In our first installment we showed how scam artists are more than willing to spend money (yours) to create the illusion of a legitimate company. In Part Two we pointed out that many of the 3,000 victims were first introduced [...]

We are drawing lessons from the $100 million Syndicated Gold Depository, S.A. scam. In our first installment we showed how scam artists are more than willing to spend money (yours) to create the illusion of a legitimate company. In Part Two we pointed out that many of the 3,000 victims were first introduced to the scam by trusted friends or advisers such as accountants. Today we discuss one of the most dastardly tactics that scam artists (including, reportedly, Gary Sorenson and Milowe Brost, the principals of SGD) use.  (more…)

 

Lessons from the SGD Scam (Part 2)

We are exploring lessons we can learn from the recently exposed $100 million Ponzi scheme operated out of Alberta, Canada by Gary Sorenson and Milowe Brost  Yesterday we looked at how competent scam artists invest money (yours) in creating a passable illusion of a profit generating business.  Today we will look at how scam artists sneak past [...]

We are exploring lessons we can learn from the recently exposed $100 million Ponzi scheme operated out of Alberta, Canada by Gary Sorenson and Milowe Brost  Yesterday we looked at how competent scam artists invest money (yours) in creating a passable illusion of a profit generating business.  Today we will look at how scam artists sneak past your skeptical nature and grab your nest egg. (more…)

 
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