OSC warns investors about bogus firm

The OSC is warning Ontario investors not to invest with Profitable Sunrise, which claims to be located in the United Kingdom while representing that its banking facilities are in the Czech Republic.

Profitable Sunrise is offering investors “investment plans,” but it is not registered in Ontario to engage in the business of trading in securities, or advising anyone with respect to investing in, buying or selling securities.

Profitable Sunrise is representing that its investment plans earn abnormal returns, risk-free, of 1.5% to 2.7% per business day, which translates into an annual return of over 300%.

Earlier this year, OSC warned investors about these types of high-yield investment programs that are actually Ponzi schemes.

Here are some common characteristics to watch for so clients don’t get duped:

• unbelievably high returns are offered;
• returns are described as guaranteed;
• the investment is described as no-risk;
• a proprietary investment technique is claimed but no details are provided;
• the company, its principals and promoters are not registered with any securities regulator; and
• it is difficult or impossible to contact the people behind the program.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.