The Offshore Investment Scam
These are scams involving high return investments. This begins with someone approaching you to come see an investment seminar. These scammers will target anyone and everyone. It may even be someone you know who was just invited to the seminar.
At the seminar your promised huge rewards with low risk by investing in the offshore markets. There may be people at the seminar testifying that they have gained already from the investment. They will state great returns of 13% – 20% return on their investment in a short period of time. They will also state that the major Canadian banks invest in these to gain capital themselves.
Watch out, you know what they say, if it’s too good to be true …… exactly. Once the money is in their control it becomes impossible to track and get back.
The general theory behind lending money is the higher the risk, the higher the interest or rate of return. The more risk, the greater the chances are that you will loose your money.
How can you prevent it?
Don’t send your money out of province. The minute the money leaves the province, you’ve lost any protections provided by Ontario law. Scams usually involve an offshore institution so that it is difficult to trace the transactions.
Research the person. The guarantee you receive from someone is only as good as that person or the company making the guarantee. Research your investment opportunity and the registration of the company and person providing the investment
Watch for promises of high return and low risk. Have your financial advisor, accountant or lawyer evaluate any investment opportunity you are offered and not sure about.
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