Now that court is over for a while and assets have been put for sale, investors are emailing me and asking what is the next thing they can do. It is an understatement to say that many are completely devastated and it’s a common thread that the investors want answers and some justice.
CTV Covers Colwood
Ash Knightley is on CTV again representing the investors with video of the Colwood White Elephant Towers.
So once you report your issue with the BCSC they send you a form email back stating that they may or may not look into it. It is my belief that they are investigating. Several investors have been contacted for additional questioning. So how it works is that you report this to your provincial regulator and they send everything to the BCSC. Investigations like this one need a lot of information so if you haven’t reported your case yet please do so.
This kind of case works a little like an NSF check case, if you bounce one check you are unlikely to be charged but if you bounce 100 checks someone is going to look into it. It is imporatant that as many people report as possible.
In League’s case, the more reports to the regulators the better.
Here is a list of questions you could use to better organize your information
1. How much money did you invest in LISI products and approximately when (month/year) did you make the investment(s)?
2. Assuming there is a total loss of your investment, on a net basis, what is the amount of the loss?
3. Did you invest in: the IGW REIT, the IPUs, the Duncan LP, another LISI product, or some combination thereof?
4. How did you hear about LISI (for example, you may have answered an ad; went to a seminar; word of mouth ; LISI website, etc.)?
5. Did anyone from LISI give you any investment advice (suitability for you of the investment; degree of your risk tolerance; your investment objectives, etc.)? If yes, what was the advice; who at LISI gave you the advice; was it oral, in writing, or both? Do you have letters or emails with LISI and any of its representatives?
6. Were you provided with an Offering Memorandum, Subscription Agreement, or any other document that you reviewed prior to making your investment(s)?
7. What caused you to make your investments i.e. did you think the investment was safe and secure?
8. What were your objectives in making the investments?
Another idea is to send a letter to your finance minister and MP and MPP. The law is lagging behind today’s reality and failing to protect investors. We all deserve to be protected from this type of fraud.
There’s a tendency to “blame the greedy investor” for not doing due diligence or being careful enough. The fact is that Ponzi schemes look exactly like other successful companies in the same business and the level of information that is available to the public is not enough to base the decision on. If you did have the level of information you needed, it would be called “insider trading”
This is wrong, investors made the decisions they made on trust, based on the information they had from the company which was misleading and deceptive, so much so that it worked on the highly trained BCSC.
Going forward we need to find a better system to protect Canadians from the wholesale raiding of their RRSP’s, TSFA’s and other retirement accounts. In the past exempt market investments were never marketed to the general public and now that they are there needs to be more accountability. It’s kind of like the difference between selling chemicals and cleaners to industry compared to selling chemicals and cleaners to the general public. I can pick up very dangerous chemicals for a business even dynamite! That doesn’t mean that I can buy it at my local grocery store.
This needs to made clear to the finance ministers. In other countries, such as Australia and the UK these kinds of investment product now require you to go and show your accountant the information from the company and they sign off on the know your client forms. Frankly it presents too much of a conflict of interest to allow the salesperson to advise you and fill out these forms. This is a source of a great many irregularities with the League Group of companies.
Do Your Best With Your Homework.