Investors in Alberta, British Columbia and Ontario are being targeted by an apparent “recovery room” scam, regulators warn.
The Alberta Securities Commission and the B.C. Securities Commission are warning investors about what they say appears to be a “recovery room” scheme that is reportedly targeting Medwell Capital Corp. shareholders.
In recovery room scams, companies contact investors and offer to buy their shares for an inflated price. They charge a fee for the transaction, but do not purchase the shares, or issue promised replacement shares. The regulators issued an investor alert today in response to reports that shareholders have been solicited by phone and email in what appears to be this sort of scam targeting shareholders of Medwell Capital.
They say investors have been contacted by a man identifying himself as Michael DeJuan of NT Global, who offers to purchase Medwell Capital shares from investors in exchange for shares in a different company at a significantly higher price. They say shareholders are then emailed a form to complete that includes their contact information and the address of NT Global. “The address on these forms is false and NT Global Advisors, a Canadian subsidiary of Northern Trust Global Advisors based out of Chicago, Illinois, indicates that their employee, Michael DeJuan, is not making any such representations to Medwell Capital investors,” the alert says.
Regulators request that anyone with information regarding the scheme contact them.