MSC warns of unregistered firm Camaco International Ltd. targeting Manitobans
Winnipeg, MB; May 26, 2015 – The Manitoba Securities Commission (MSC) is cautioning investors about an unregistered firm operating under the name Camaco International Ltd. (Camaco), which recently advertised using a Winnipeg radio station.
In an editorial-style advertisement, Camaco spokesperson Stuart Price encouraged Manitoba investors to place funds in offshore trading accounts in order to access the foreign exchange market (FOREX) through “Contract for Difference Trading,” which he described as new investment product that uses leveraged funds to increase returns.
Investors should be aware that Camaco is not registered to sell securities in Manitoba and that its actions are not in compliance with provincial securities laws.
The MSC notes several red flags in connection with Camaco’s sales approach, including:
- Promises of high returns with low risk. Higher returns usually come with higher risk. Camaco advertises that for every $5,000 invested, it will leverage $100,000 to make profits, and use stop losses to mitigate risk. Leverage is used to increase potential gains, but there is also a high level of risk that can result in significantly increased losses.
- Offshore investments. Camaco maintains a Canadian phone number, but is purportedly based in Monaco. Money that is moved outside of Canada can be nearly impossible to recover if something goes wrong.
- Claims that invested funds are protected from loss. This type of investment carries with it significant inherent risk that makes it highly unlikely for investors to be insured against loss.
Manitobans who have had dealings with Camaco are asked to contact the MSC by calling 1-855-FRAUD-MB. For more information on how to check the registration of a person or company offering investment products, visit recognizeinvestmentfraud.com.
The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.