Victims of an alleged boiler room scam may now be being targeted for further abuse, the Ontario Securities Commission (OSC) warned Tuesday.
The OSC issued a warning to investors in York Rio Resources Inc. about a possible new threat.
Earlier this year, the commission handed down sanctions, including trading bans, financial penalties, disgorgement and costs against several companies and individuals in connection with an investment scam involving a company called York Rio that the commission says cost investors about $18 million.
Now, the OC is warning that individuals acting on behalf of an entity named GSA Settlements have contacted an investor asking that they provide certain financial information in order to receive a payout from a purported “settlement fund account” related to York Rio.
The OSC says that it is “not associated with GSA Settlements or its purported funds distribution scheme,” nor has it promised to return any funds that may be recovered to investors. In a March 31 decision, the OSC did order almost $17 million in disgorgement, along with $5.6 million in monetary penalties, among other sanctions, in the case.
The regulator also points out that it has issued an earlier warning designed to help investors avoid so-called advance fee frauds that target investors who have already lost money.