Securities regulators are warning investors about a Chinese company that appears to be targeting shareholders in York-Rio Resources Ltd. in an upfront fee scheme.
The Ontario Securities Commission (OSC issued a warning to investors today about China International Capital Group and its representatives. Echoing a warning from the BC Securities Commission (BCSC) that was published back in August, the OSC warns that the firm is contacting York-Rio shareholders, offering to buy their shares in the company at a substantial premium. Once the investor agrees to sell their shares, they then ask the investor to pay a fee for the transaction or to exchange the shares.
The OSC says that China International and its representatives are not registered to solicit investments from investors in Ontario, or to provide advice on investing in, buying or selling securities.
The warnings from both the BCSC and the OSC also note that similar offers were made to York-Rio shareholders in 2009 and 2010 by entities identifying themselves as Penn Capital Management Ltd., Featherstone and Bellman Equity Exchange Group and Impact Finance.