Another Ponzi scheme rears its ugly head

Another Ponzi scheme rears its ugly head

Another Ponzi scheme rears its ugly head The OSC held a hearing In Writing March 4 against several Ontario respondents that alleges they traded in securities without being registered to do so and without an available exemption from the registration requirements, contrary to subsection 25(1)(a) of the Securities Act. 
 
Peter Balazs, one of the respondents, raised $3.7 million from investors in Canada and the U.S. The investors were under the impression that the funds would be invested in the foreign currency exchange market.
 
That did not happen.
 
Instead, some of the funds were used to pay withdrawal payments to other investors or to pay for personal expenses. Of the $3.7 million, less than half has been recovered.
 
The Reasons and Decision of this case make it perfectly clear that the respondents had no intention of carrying on a legitimate business and were simply intent on profiting from their alleged illegal activities.
 
In addition, the OSC made an Order in this case that should see final submissions on sanctions and costs delivered by OSC staff sometime at the end of April. 
 
5 Comments
  • Peter 2015-03-05 4:05:27 PM
    No matter how much compliance there is and no matter how many regulatory bodies police the industry, if there is no honesty, integrity, and fiduciary duty, schemes like this will always rear its ugly head.
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  • Niki 2015-03-05 5:11:08 PM
    Appears they were not registered. Someone does something illegal and then the system adds more accountabililty to those who are doing things legally and properly.
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  • Peter 2015-03-05 5:18:59 PM
    Totally agree with you Niki. When I started in this business over 30 years ago, there was no such thing as compliance. And there were less "scams and schemes" that there are today. Either you are an ethical advisor or you are not.
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