The New Brunswick Securities Commission (NBSC) has added a company to its caution list over concerns that it’s improperly soliciting investors online.
The NBSC said Thursday it has added Equity Star Momentum Group to its online caution list after it was alerted by investors claiming they had received several email solicitations from the company, which is not registered to sell investments in the province.
Additionally, it says that the company, which is purportedly based in the U.S., has not responded to demands for more information from its enforcement staff.
“Legitimate investment opportunities do not just appear out of the blue in your inbox or from a stranger over the telephone,” said Rick Hancox, executive director of the NBSC. “The first step to take if approached to purchase any investment is to check with us to make sure the company and the individual are registered to sell securities in New Brunswick.”
“The offers pitched by unsolicited emails or telephone calls can be very convincing,” said Hancox. “The websites to which they refer you can appear very professional and are usually full of complex language, awards or recommendations that cannot be verified. There is often a members-only section seeking personal information. These are all warning signs of a potential scam.”