TRID Pacific Investments (TRID) in Alberta is promoting what appears to be an illegal scheme to transform $5,000 into a $100,000 leveraged investment.
The Alberta Securities Commission (ASC) has issued a warning about an investment program recently promoted on a Calgary radio station by TRID Pacific Investments (TRID). The ASC says that TRID representative Raymond Levine encouraged Alberta investors to place funds in offshore accounts in its Contract for Difference Trading account, which employs leverage.
"The public should be aware that TRID is not registered to sell securities in Alberta, is not registered to do business in Alberta, and that its actions are not in compliance with Alberta securities laws," warns the ASC.
The provincial regulator points out that the TRID program raises several red flags common to investment scams. For example, TRID says that each $5000 invested will leverage $100,000 to earn profits. Despite this inherently risky strategy, the TRID claims that the risk of loss is limited.
The ASC is also concerned about the fact that TRID is moving money offshore. "This makes it more difficult, if not impossible, for investors to retrieve their money if something goes wrong," notes the ASC. "TRID purports to be based in Monaco, but funds are sent to accounts in Spain."