Winnipeg (October 10, 2019) – On October 8th, the Manitoba Securities Commission (MSC) warned against investing in the U.S. based company Aureum Energy. The so-called ‘Energy Project’ is actively promoting investments in Manitoba. The MSC issued the investor alert due to non-compliance with registration and disclosure requirements. The MSC suggests investors should check an individual or company’s registration at aretheyregistered.ca before investing.
As a result of an investigation, the Manitoba Securities Commission (MSC) issued an investor alert against Aureum Energy on October 8. The U.S.-based company claims to convert plastic waste into fuel. The MSC explains that the warning has been released due to non-compliance with registration and disclosure requirements.
‘Aureum has been persistent in seeking investments from Manitobans,’ says Jason Roy, Senior Investigator with the MSC. The so-called ‘Energy Project’ was actively promoting investment offers between US$10,000 and US$500,000. They promised a 35 percent annual return over 21-months for the high-risk investment. The MSC warns that Aureum Energy has never been registered to trade securities in Manitoba, or has filed a prospectus with MSC.
In other words, the company, which is operating in Las Vegas, Manitoba, and British Columbia is seeking those investments without authorization. ‘At a minimum, this is a fairly complex, high-risk investment being offered by a company working outside of compliance with securities law,’ says Roy.
The MSC advises Manitoba investors to be extremely cautious with this type of offering and suggests to follow some basic advice before investing in any project:
- Check an individual or company’s registration at aretheyregistered.ca.
- Research an investment before making a commitment.
- Look for investment fraud red flags such as promises of high returns with low risk, pressure to invest quickly, and inconsistent details.
- Never send money to anyone you only know from an unsolicited phone call or email.
- Never give out sensitive personal information online or over the phone.
MSC suggests investors should make sure they thoroughly understand the details and risks of a potential investment, and whether it fits with their long-term financial strategy. Even legitimate products can be high-risk, and definitely not suitable for everyone.
Members of the public are advised to contact MSC if they believe they have been targeted by any type of investment fraud attempt. MSC’s anti-fraud line is 1-855-FRAUD-MB. For more information on common investment frauds and scams please visit recognizeinvestmentfraud.com.
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.