The Alberta Securities Commission (ASC) issued a warning Jan. 24 about Global Advocacy Association/Global Advocates, which the regulator says is an organization targeting investors in the Walton Group of Companies and others, including Canyon Acquisition and CBI Group.
“Global Advocacy Association/Global Advocates are purportedly working to recover investor losses and they claim to have locations in Sweden and Panama. This appears to be a recovery room scheme,” says the ASC.
Recovery room schemes
Recovery room schemes typically involve companies that contact investors who may have lost money in an illiquid or fraudulent investment and offer to recover their funds. Once investors agree to the deal, they are typically asked to pay upfront fees for the service or transaction. “In reality, the operators keep the funds, but do not action the service,” explains the ASC.
There are several "red flags" or risks common to illegal investment schemes present in Global Advocacy Association/Global Advocates' promotions and sales techniques, including suspicious contact information. No company by the name "Global Advocacy Association" maintains offices at the addresses provided on its website. Further, a phone number for Sweden is incorrectly listed with the country code missing. The phone number for "The Americas" is listed in Maryland, where the physical address is listed in Panama City.
Other red flags
Another red flag is a “Don't miss this opportunity,” approach. Albertans have reported that Global Advocacy Association has extended the deadline to participate. “Albertans should be aware that this is a common tactic used in fraudulent investments or recovery room schemes,” says the regulator. Offshore offices are also red flags.
“Sending money offshore compounds the risk. You may not receive the service offered and have no way to recoup those funds,” warns the ASC.