The Prince Edward Island Securities Division is notifying Island investors to be aware of inappropriate investment activities in the province. This notification is based on information received from public inquiries as well as information provided by the New Brunswick Department of Justice.
The New Brunswick Administrator of the Securities Administration Branch of the Department of Justice has frozen the bank accounts of Four Seasons and Fun Land Inc., based on the findings of a preliminary investigation. New Brunswick branch staff also seized documents from the offices of Four Seasons and Fun Land Inc. and a related company, Poor People Helping Poor People Foundation Inc.
The Prince Edward Island Securities Division has reason to believe that a number of shares in these companies have been sold to PEI residents through salespeople located in Prince Edward Island.
The Moncton-based companies were purportedly raising capital for the construction of a proposed camp for underprivileged children.
The actions were taken after the New Brunswick Securities Administration Division received a number of inquiries about the sale of shares by the companies.
None of the individuals involved in the sale of the shares is registered with either the New Brunswick or the Prince Edward Island Securities Branch. The shares reportedly sell for $75 each and claim to yield a return of $28,000 over five years. No prospectus describing the offering has been filed in NB or PEI and no literature on the scheme has been made available.
Anyone considering an investment in any type of security is to take the following precautions: Deal with a registered broker; If in doubt, call the PEI Securities Division to see if the salesperson is registered to trade in securities; Obtain and read a prospectus which describes the nature of the investment and the risks involved; Be cautious about promises of unusually high returns.