Posts
Corruption and wrongdoing are key issues in Canada from which all else flows and should be paramount in our next Government's platform for election.
The Gomery Commission indicates that greed and corruption permeates our government and that TruthTellers are not protected.
Certainly heath care, education, and security are important, but how much money is robbed from Canadians citizens by white-collar criminals who escape punishment? Adscam represents only hundreds of millions, but the investment industry robbing Canadians represents 100's of billions. We estimate losses due to wrongdoing to be in excess of $1 billion each year and could be in the order of $20 billion per year.
Why is this covered up by the investment industry and the regulators. When SIPA asked the provincial regulators for facts, only the British Columbia Securities Commission provided any information regarding the extent of the problem. They estimated that reported investor losses due to wrongdoing were $100 million each year in B.C. Given that reported losses are only a small fraction of the actual losses and that B.C. is only one province, it is easy to extrapolate to $1 billion.
Given the size of the scandals and frauds that are currently being exposed it suggests that the number is more like $20 billion when some of the individual scams are in the order of $1 billion.
Canadians, particularly seniors and widows, are being robbed of their savings by robber barons who manipulate the public and encourage Canadians to place their trust in an industry that fosters scams like Bre-X, corporate shenanigans like Nortel, Livent, Corel, Eaton's, Air Canada and Stelco that cost Canadians their savings and pensions.
The Mutual Fund Market Timing scandal exposed last year when eight of our largest investment firms admitted to robbing investors to line their own pockets illustrates the cavalier attitude of the investment industry towards Canadians' savings. Of course they admitted no wrongdoing (Is robbing investors not wrong?) but agreed to pay $200 million for their involvement. There are a host of other firms that were not fingered. Canadians probably lost billions.
Then there are scams like Crocus, Portus and Norsheild that cost Canadians (over 50,000 of them) billions of dollars in lost savings.
Now there is the income trust debacle. The investment industry has been allowed to prey on the public and sell them products, that are not regulated in a meaningful way, and deceive seniors into thinking these products offer security of capital and a handsome rate of return. These same seniors who did not want to risk their money by buying equities were sold income trusts that have even more risk.
Many of the unsuitable income trusts have dropped in value virtually from the date of issue and had badly deteriorated before Goodale's September statement. This debacle should not have been allowed to happen. Many seniors will lose a major portion of their savings because they were deceived by an industry that is out of control. The following is list of a dozen of the worst. There are many others that will be revealed in the Accountability Research Report due for release Wednesday, November 23, 2005.
Bankrupt:
Heating Oil Partners BANKRUPT
Unit value drop this year (to November 18) :
Associated Brands 64%
Boyd Group 65%
CanWel Building Materials 65%
Chemtrade Logistics 58%
Connors Brothers 50%
Clean Power 41%
Clearwater Seafoods 59%
Entertainment One 66%
FMF Capital 87%
Menu Foods 77%
Tree Island Wire 47%
Canadians are being robbed of their savings by white collar criminals of the same breed as those who defrauded our Government in the sponsorship scandal. The loot is many billions of dollars each year and this ultimately is paid by the taxpayer.
It is time that Government makes the fight against crime and corruption a priority and mobilizes the Canadian public to help in that fight by introducing legislation that will enable all Canadians in every walk of life to come forward and tell the truth about those who are corrupt and scheme to rob Canadians. TruthTellers should not have to fear retribution.
Government employees lost their jobs when they came forward to tell the truth.
Alberta Securities Commission employees lost their jobs when they came forward to tell the truth.
Employees in the investment industry lost their jobs when they came forward to tell the truth.
Canadians need a Government that recognizes the extent of corruption in Canada and takes action to combat its spread and restore Canada's reputation to regain the trust of our citizens and the rest of the Global community.
Canadians should be protected from robbery and corruption, and be protected when they come forward with the truth.
Canadians should not have to live in fear.
Let us hope that our political representatives will hear this message.
The public must speak out and make their voices heard. Contact your political representative.
Tuesday, November 22, 2005
Saturday, November 12, 2005
Beware Structured Products
While income trusts are headline news, investors need to beware other structured products.
Keith Kalawsky writes "Painful lessons in structured products" in the Financial Post about Mulvihll Capital Management. It seems they sold $188,000 of Pro-AMS U.S. Trust to a small investor. The fund offered a 9% yield and a guarantee to repay the principal on maturity. All this sounds too good to be true.
After four monthly distribution payments they were cut in half, then cut again, and finally suspended. Now the investor realizes that the distributions were not guaranteed, and while there is a guarantee to repay 100% of the principal on maturity, there are currently no distributions, and if he wants to cash out he will receive only current value. The initial value was $25.00 but they now trade around $21.50.
Not such a good investment for a senior looking for security with income.
At issue here is that the industry is allowed to sell unsuitable products to seniors without disclosing the risks to the investor. The regulators are failing to provide any semblance of investor protection and the industry is wilfully taking advantage of the small investor.
Robert Goldin was on the money when he published "Investor Beware" in 1998.
The industry is not honouring its fiduciary duty and the regulatory system seems to acquiesce.
Keith Kalawsky writes "Painful lessons in structured products" in the Financial Post about Mulvihll Capital Management. It seems they sold $188,000 of Pro-AMS U.S. Trust to a small investor. The fund offered a 9% yield and a guarantee to repay the principal on maturity. All this sounds too good to be true.
After four monthly distribution payments they were cut in half, then cut again, and finally suspended. Now the investor realizes that the distributions were not guaranteed, and while there is a guarantee to repay 100% of the principal on maturity, there are currently no distributions, and if he wants to cash out he will receive only current value. The initial value was $25.00 but they now trade around $21.50.
Not such a good investment for a senior looking for security with income.
At issue here is that the industry is allowed to sell unsuitable products to seniors without disclosing the risks to the investor. The regulators are failing to provide any semblance of investor protection and the industry is wilfully taking advantage of the small investor.
Robert Goldin was on the money when he published "Investor Beware" in 1998.
The industry is not honouring its fiduciary duty and the regulatory system seems to acquiesce.
Big Bank Brokerage cheats employees
Jon Chevreau writes about a broker who was lied to by his employer and eventually moved to another firm and started civil action against his former employer.
It seems his wife was an active investor and did not require a full service broker. However the broker was told it was IDA policy that employees families must have their accounts with the firm. When the broker confronted the firm with the fact that it was not an IDA rule they informed him that it was now the firm's rule.
This did not sit well with the broker and he changed firms.
The important issue here is that the big bank brokerages will lie and cheat their employees as well as their clients. In the lawsuit they deny all the allegations as well as denying they had any fiduciary obligations.
It will be interesting to see how this plays out in court. It will be a big black eye for the bank.
It seems his wife was an active investor and did not require a full service broker. However the broker was told it was IDA policy that employees families must have their accounts with the firm. When the broker confronted the firm with the fact that it was not an IDA rule they informed him that it was now the firm's rule.
This did not sit well with the broker and he changed firms.
The important issue here is that the big bank brokerages will lie and cheat their employees as well as their clients. In the lawsuit they deny all the allegations as well as denying they had any fiduciary obligations.
It will be interesting to see how this plays out in court. It will be a big black eye for the bank.
The New Movement
There are many initiatives by investor advocates, shareholder activists and advocates of many interests. The issues are diverse and not everyone is on the same page.
For several years SIPA has actively communicated with individuals and groups with an objective to build a consensus on specific issues.
In 2004 SIPA believed the only salvation for retail investors would be a national agency with a mandate to provide investor protection and a means of restitution for victims of industry wrongdoing. SIPA partnered with Canada's Association for the Fifty Plus to prepare a report on Mutual Funds that recommended amongst other things the establishment of a national Investor Protection Agency.
In 2005 SIPA associated with CARP and the United Senior Citizens of Ontario (USCO) to pursue an initiative to have the Ontario Limitations Act amended to restore the six year limitation period.
SIPA networks with a number of investors advocates and is exploring co-operation with other organizations with similar interests to expand the fledgling working group.
For several years SIPA has actively communicated with individuals and groups with an objective to build a consensus on specific issues.
In 2004 SIPA believed the only salvation for retail investors would be a national agency with a mandate to provide investor protection and a means of restitution for victims of industry wrongdoing. SIPA partnered with Canada's Association for the Fifty Plus to prepare a report on Mutual Funds that recommended amongst other things the establishment of a national Investor Protection Agency.
In 2005 SIPA associated with CARP and the United Senior Citizens of Ontario (USCO) to pursue an initiative to have the Ontario Limitations Act amended to restore the six year limitation period.
SIPA networks with a number of investors advocates and is exploring co-operation with other organizations with similar interests to expand the fledgling working group.
Small Investor Protection Association New Web Address
The Small Investor Protection Association (SIPA) has a new website address www.sipa.ca. Last week the new address was activated but visitors to www.sipa.to will be re-directed to the new website.
There are a few changes including the addition of a webpage on Income Trusts to make investors aware of the risks associated with these products. It includes a number of media articles and comments dating back to 2003, as well as warnings regarding the risks of business income trusts.
The Income Trust issue is not new. It has received media prominence because of Goodale's comments. This should prove beneficial for investors long term provided they do not have all of their money in some of the worst and get caught in the downdraft.
Visit www.sipa.ca and click on Income Trusts on the home page.
There are a few changes including the addition of a webpage on Income Trusts to make investors aware of the risks associated with these products. It includes a number of media articles and comments dating back to 2003, as well as warnings regarding the risks of business income trusts.
The Income Trust issue is not new. It has received media prominence because of Goodale's comments. This should prove beneficial for investors long term provided they do not have all of their money in some of the worst and get caught in the downdraft.
Visit www.sipa.ca and click on Income Trusts on the home page.
Income Trusts - Friend or Foe?
Ralph Goodale is receiving lots of criticism from the industry and from the unknowing.
Industry makes a ton of money from new issues and that includes income trusts. Brokerage fees, lawyers fees, selling commissions and all from selling products without history and asking investors to trust the industry and buy!
Considering how many investors have lost their shirt by trusting the industry, it's time for retail investors to take a hard look at how they are being conned.
Heating Oil Partners is reported as the first income trust to declare bankruptcy. That means investors have lost all their investment.
Many other investors are more fortunate. The investors in Atlas Cold Storage have only lost half their money and the investors in Clearwater Seafoods have only lost 60%. The young lady was right when she said income trusts are good because many people make a living selling them and besides they are not as bad as some equities.
Thank you. It does not sound like where I want to invest.
To be fair some income trusts have performed well. Those that were based upon mature companies with consistent cash flow that could be maintained year after year perform as promised. The idea is to pay out pre-tax dollars rather than after tax dollars in dividends. Depending upon the investors tax situation they could be attractive.
However it seems the industry is never content with a good product that is good for investors and good for the industry. It seems they want to milk it so the industry has maximum benefit regardless of the impact on investors.
With a rash of new income trusts flooding the market Ralph Goodale said they would no longer pre-approve conversions until the situation was reviewed. Suddenly income trusts started to lose value on speculation that the tax benefit might be reduced.
The industry blamed the reduced values on Ralph Goodale. However, critics have been warning for some time that many of the business income trusts are not viable but are operating like a Ponzi scheme. The distribution is greater than the earnings and therefore investors are being paid with either their own capital or borrowed money.
Clearwater Seafoods had suspended distribution earlier this year and by the time Goodale made the news Clearwater units had already lost almost half their value.
Unfortunately business income trusts are being sold to retail investors, many of them seniors and widows, who are afraid to invest in equities because they perceive them as risky. They are persuaded that income trusts will provide returns much higher than GICs and government bonds but they are not made aware of the risks associated with these products.
The industry knowingly is selling inappropriate products to seniors and widows. They are leaving themselves open to massive lawsuits which will surely follow their cavalier approach to selling unsuitable product to unknowing investors.
As more information becomes available the business trusts will collapse and retail investors will lose tons of money. This will create business for lawyers but Bay Street may see their bonuses reduced. Already the reduction in new issues is effecting anticipated bonuses.
Retail investors need to be aware of the risks associated with income trusts, particularly business income trusts.
Investors should get a second independent opinion and decide what action they should take. If they were sold income trusts on the basis they were a secure investment that would provide a secure income, and it is nor performing as portrayed, they should speak with a good securities lawyer as soon as possible.
Keep in mind that in some provinces you have only two years from the cause of action to submit a civil claim.
Industry makes a ton of money from new issues and that includes income trusts. Brokerage fees, lawyers fees, selling commissions and all from selling products without history and asking investors to trust the industry and buy!
Considering how many investors have lost their shirt by trusting the industry, it's time for retail investors to take a hard look at how they are being conned.
Heating Oil Partners is reported as the first income trust to declare bankruptcy. That means investors have lost all their investment.
Many other investors are more fortunate. The investors in Atlas Cold Storage have only lost half their money and the investors in Clearwater Seafoods have only lost 60%. The young lady was right when she said income trusts are good because many people make a living selling them and besides they are not as bad as some equities.
Thank you. It does not sound like where I want to invest.
To be fair some income trusts have performed well. Those that were based upon mature companies with consistent cash flow that could be maintained year after year perform as promised. The idea is to pay out pre-tax dollars rather than after tax dollars in dividends. Depending upon the investors tax situation they could be attractive.
However it seems the industry is never content with a good product that is good for investors and good for the industry. It seems they want to milk it so the industry has maximum benefit regardless of the impact on investors.
With a rash of new income trusts flooding the market Ralph Goodale said they would no longer pre-approve conversions until the situation was reviewed. Suddenly income trusts started to lose value on speculation that the tax benefit might be reduced.
The industry blamed the reduced values on Ralph Goodale. However, critics have been warning for some time that many of the business income trusts are not viable but are operating like a Ponzi scheme. The distribution is greater than the earnings and therefore investors are being paid with either their own capital or borrowed money.
Clearwater Seafoods had suspended distribution earlier this year and by the time Goodale made the news Clearwater units had already lost almost half their value.
Unfortunately business income trusts are being sold to retail investors, many of them seniors and widows, who are afraid to invest in equities because they perceive them as risky. They are persuaded that income trusts will provide returns much higher than GICs and government bonds but they are not made aware of the risks associated with these products.
The industry knowingly is selling inappropriate products to seniors and widows. They are leaving themselves open to massive lawsuits which will surely follow their cavalier approach to selling unsuitable product to unknowing investors.
As more information becomes available the business trusts will collapse and retail investors will lose tons of money. This will create business for lawyers but Bay Street may see their bonuses reduced. Already the reduction in new issues is effecting anticipated bonuses.
Retail investors need to be aware of the risks associated with income trusts, particularly business income trusts.
Investors should get a second independent opinion and decide what action they should take. If they were sold income trusts on the basis they were a secure investment that would provide a secure income, and it is nor performing as portrayed, they should speak with a good securities lawyer as soon as possible.
Keep in mind that in some provinces you have only two years from the cause of action to submit a civil claim.
Friday, September 23, 2005
Bre-X Revisited - Justice System & Enforcement Failings
Several years ago two small investors took BMO Nesbitt Burns to court over Bre-X. Bre-X was billed as "Scam of the Century" and I predicted the trial would be media event of the century. The first day of the trial two Ottawa evening papers covered the trial. Fascinating reading.
The next day nothing appeared in the Toronto papers and then nothing further appeared in the Ottawa papers. The trial continued unreported. Who was responsible for the cover-up?
Most Canadians suffered some degree of loss from Bre-X through direct ownership or mutual funds, yet the media was strangely silent.
Eventually an out of court settlement was reached and the caper covered up.
A decade late the trial of Felderhof is getting more coverage. He is small fry. The banks however are not small fry. When RBC pays $2.6 billion to settle with U.S. regulators to cover up their wrongdoing, one can only wonder.
Now the OSC is concluding its case against Felderhoff. The charge is insider trading. Big Deal.
The Bre-X caper is fraud. This is criminal. The chief geologist doesn't know? He loots $90 million and investors are left holding the bag. Just who is providing investor protection. Ah yes, the Investment Dealers Association.
Canada's justice system and securities enforcement are a joke!
Felderhof faces a maximum of two years in jail and a fine that will pale in significance to the millions he made from this fraud.
At least they could do would be hand him a severe sentence a la Coffin. They could pair him with Coffin as a duo on a speaking tour to talk about ethics to business students. That would certainly teach them a lesson and encourage the next generation of financial predators.
We need to speak out about our inadequate enforcement that fails to deter crime, and our justice system that seems to reward white collar criminals by allowing them "to pay their debt to society" and enjoy the proceeds of their crimes while the victims are left to try to pick up the pieces of their shattered hopes and dreams.
These white collar predators are destroying the wealth and lives of small investors.
Bring back capital punishment and hang them.
The next day nothing appeared in the Toronto papers and then nothing further appeared in the Ottawa papers. The trial continued unreported. Who was responsible for the cover-up?
Most Canadians suffered some degree of loss from Bre-X through direct ownership or mutual funds, yet the media was strangely silent.
Eventually an out of court settlement was reached and the caper covered up.
A decade late the trial of Felderhof is getting more coverage. He is small fry. The banks however are not small fry. When RBC pays $2.6 billion to settle with U.S. regulators to cover up their wrongdoing, one can only wonder.
Now the OSC is concluding its case against Felderhoff. The charge is insider trading. Big Deal.
The Bre-X caper is fraud. This is criminal. The chief geologist doesn't know? He loots $90 million and investors are left holding the bag. Just who is providing investor protection. Ah yes, the Investment Dealers Association.
Canada's justice system and securities enforcement are a joke!
Felderhof faces a maximum of two years in jail and a fine that will pale in significance to the millions he made from this fraud.
At least they could do would be hand him a severe sentence a la Coffin. They could pair him with Coffin as a duo on a speaking tour to talk about ethics to business students. That would certainly teach them a lesson and encourage the next generation of financial predators.
We need to speak out about our inadequate enforcement that fails to deter crime, and our justice system that seems to reward white collar criminals by allowing them "to pay their debt to society" and enjoy the proceeds of their crimes while the victims are left to try to pick up the pieces of their shattered hopes and dreams.
These white collar predators are destroying the wealth and lives of small investors.
Bring back capital punishment and hang them.
Tuesday, September 20, 2005
Portus Bankruptcy?
Wojtek Dabrowski writes Portus "allegedly used $95.4-million of investors' money to pay its expense, referral fees to brokers and to fund the redemptions of other investors - similar to the notorious schemes operated by Charles Ponzi."
Portus had some 30,000 client accounts with over $800 million invested.
The regulators shut Portus down in February 2005. The RCMP is investigating and KPMG are reporting. KPMG suggests that bankruptcy should be declared.
It seems that our regulatory system is unable to prevent widespread wrongdoing and fraud from happening. The problem investors face is that there is no Authority that provides investor protection. Investors are left at the mercy of an industry that is robbing many investors of their life savings.
Victims only recourse is civil litigation, but that does not help if there are no resources to recover. There must be an investment fund to protect investors that is administered by an Authority with a mandate for investor protection.
At the same time, it seems that the investment industry has been able to get limitation periods reduced in several provinces, including Ontario, from six years to two years. This means that if victims are unable to start a civil action within two years of the action that caused the loss they will be statute barred from taking action.
Victims of Portus will have to move quickly if they plan to take civil action.
Portus had some 30,000 client accounts with over $800 million invested.
The regulators shut Portus down in February 2005. The RCMP is investigating and KPMG are reporting. KPMG suggests that bankruptcy should be declared.
It seems that our regulatory system is unable to prevent widespread wrongdoing and fraud from happening. The problem investors face is that there is no Authority that provides investor protection. Investors are left at the mercy of an industry that is robbing many investors of their life savings.
Victims only recourse is civil litigation, but that does not help if there are no resources to recover. There must be an investment fund to protect investors that is administered by an Authority with a mandate for investor protection.
At the same time, it seems that the investment industry has been able to get limitation periods reduced in several provinces, including Ontario, from six years to two years. This means that if victims are unable to start a civil action within two years of the action that caused the loss they will be statute barred from taking action.
Victims of Portus will have to move quickly if they plan to take civil action.
Crime and Punishment?
In the U.S. :
Justice Michael Obus sentenced former Tyco Chief Executive Dennis Kozlowski to 25 years in prison for larceny and defrauding investors.
Former WorldCom chairman Bernie Ebbers was sentenced to 25 years in prison for accounting fraud.
Adelphi Communications founder John Rigas was sentenced to 15 years in federal prison for fraud at the age of 80.
In Canada:
Paul Coffin, the first person charged in the $250 million federal sponsorship scandal pleaded guilty to 15 fraud counts and was sentenced to speak on ethics to business students!
What message are we trying to give to the next generation of business leaders?
You can be dishonest, live high by defrauding others, and the worst that can happen is you can be sent on speaking engagements!
As long as white collar crime pays in Canada it will continue unabated.
Justice Michael Obus sentenced former Tyco Chief Executive Dennis Kozlowski to 25 years in prison for larceny and defrauding investors.
Former WorldCom chairman Bernie Ebbers was sentenced to 25 years in prison for accounting fraud.
Adelphi Communications founder John Rigas was sentenced to 15 years in federal prison for fraud at the age of 80.
In Canada:
Paul Coffin, the first person charged in the $250 million federal sponsorship scandal pleaded guilty to 15 fraud counts and was sentenced to speak on ethics to business students!
What message are we trying to give to the next generation of business leaders?
You can be dishonest, live high by defrauding others, and the worst that can happen is you can be sent on speaking engagements!
As long as white collar crime pays in Canada it will continue unabated.
Thursday, July 21, 2005
INVESTOR ADVOCATE WEBSITE SHUT DOWN
Advisor.ca has posted an article entitled "Investor advocate in website battle" on July 21, 2005. Doug Watt writes "Investor advocate and regulatory crusader Robert Kyle's website has been shut down by his American service provider. The move follows legal threats from a Canadian law firm regarding some of the content on the site, Kyle has been told."
This is not the first time that investor advocate websites have been threatened.
Watt also writes "It's believed MacPherson, Leslie & Tyerman want all court documents related to legal claims involving advisor Brian Mallard and former employee Kent Shirley removed from the site since the matter is still before the courts. Kyle did take down those particular documents and has set them up on a separate server. Still, the U.S. provider, United Online Web Servers, refuses to restore the main site, which has been down since last Friday. ... Kyle's site contained hundreds of news articles, documents and court cases all related to self-regulatory organizations and the Canadian securities industry. "
Kyle's site has gained a reputation as a resource for journalists, investors and investor advocates. It was a valuable resource and provided an archives freely available to the public that is not available elsewhere.
It will be a pity if industry is allowed to run roughshod over investor advocates by using intimidation and the threat of lawsuits to force individuals to comply with their demands.
There is too much cover-up in the investment industry and it is high time that the federal government establishes an inquiry into the widespread wrongdoing that has been covered up for far too long.
The Senate Committee on Banking Trade & Commerce has only scratched the surface with its hearings but seem to be seeing through the industry subterfuge. The Committee has now extended the time to complete their report. It is hoped that the Senate Committees report will lead to some meaningful government action to provide meaningful investor protection.
Meanwhile SIPA has joined forces with CARP, Canada's Association for the Fifty Plus, and USCO, the United Senior Citizens of Ontario. This collective group represents over a half million seniors. This collective group is now supported by the Opposition Critic to the Attorney General, MPP Joe Tascona, who has prepared a Petition to the Government of Ontario to have an amendment to the recent Limitations Act to modify the limitation periods for small investors. The Act was pushed through in an Omnibus Bill and Members unwittingly voted for it without realizing the damaging impact on seniors who lose their life savings due to widespread industry wrongdoing.
Although the Attorney General at first refused to meet with a SIPA led delegation (the Attorney General's response is on the SIPA website at www.sipa.to), the Minister has now asked his staff to meet with SIPA. The meeting is expected to take place before mid August.
SIPA is also liaising with other groups with a view to collaborating to stand up for investors rights and address key issues that impact all investors.
This is not the first time that investor advocate websites have been threatened.
Watt also writes "It's believed MacPherson, Leslie & Tyerman want all court documents related to legal claims involving advisor Brian Mallard and former employee Kent Shirley removed from the site since the matter is still before the courts. Kyle did take down those particular documents and has set them up on a separate server. Still, the U.S. provider, United Online Web Servers, refuses to restore the main site, which has been down since last Friday. ... Kyle's site contained hundreds of news articles, documents and court cases all related to self-regulatory organizations and the Canadian securities industry. "
Kyle's site has gained a reputation as a resource for journalists, investors and investor advocates. It was a valuable resource and provided an archives freely available to the public that is not available elsewhere.
It will be a pity if industry is allowed to run roughshod over investor advocates by using intimidation and the threat of lawsuits to force individuals to comply with their demands.
There is too much cover-up in the investment industry and it is high time that the federal government establishes an inquiry into the widespread wrongdoing that has been covered up for far too long.
The Senate Committee on Banking Trade & Commerce has only scratched the surface with its hearings but seem to be seeing through the industry subterfuge. The Committee has now extended the time to complete their report. It is hoped that the Senate Committees report will lead to some meaningful government action to provide meaningful investor protection.
Meanwhile SIPA has joined forces with CARP, Canada's Association for the Fifty Plus, and USCO, the United Senior Citizens of Ontario. This collective group represents over a half million seniors. This collective group is now supported by the Opposition Critic to the Attorney General, MPP Joe Tascona, who has prepared a Petition to the Government of Ontario to have an amendment to the recent Limitations Act to modify the limitation periods for small investors. The Act was pushed through in an Omnibus Bill and Members unwittingly voted for it without realizing the damaging impact on seniors who lose their life savings due to widespread industry wrongdoing.
Although the Attorney General at first refused to meet with a SIPA led delegation (the Attorney General's response is on the SIPA website at www.sipa.to), the Minister has now asked his staff to meet with SIPA. The meeting is expected to take place before mid August.
SIPA is also liaising with other groups with a view to collaborating to stand up for investors rights and address key issues that impact all investors.
Sunday, July 17, 2005
RBC Dominion Securities Andrew Rankin found Guilty
Justice Ramez Khawley found RBC Dominion Securities executive Andrew Rankin guilty on ten counts of tipping. It is not unusual for the investment industry to disregard the rules and use our legal system to frustrate the regulators and try to escape justice.
However Justice Khawley's decision points up the deterioration of morality and ethics in our society that is creating an untenable situation for investors. Justice Khawley states that executives from RBC's investment banking arm are not very credible.
When our investment industry will not tell the truth to a judge in court, how can investors think that the investment advisors will tell them the truth. Almost every day we hear of situations where financial advisors, auditors and corporate executives are making misstatements, or if they are in court have selectively lost their memory of certain events.
How does RBC react to this? Moorcroft, a spokesman for RBC, said Justice Khawley's comments about DS witnesses is a "side issue" and "the credibility of individual witnesses are not on trial here". The industry apparently condones, if not demands, this behaviour.
Well, it's time that the credibility of the investment industry is put on trial.
Meanwhile, all investors should realize that with the lack of investor protection, the lack of enforcement, and the failure of the SROs to regulate their members, Canadian investors are in an INVESTOR BEWARE situation.
Investors must make themselves aware of how the industry operates with a cavalier attitude towards investors savings, and a callous attitude towards small investors. The industry is willing to engage in practices that will result in the decimation of life savings and disregard the needs of their clients. They will inappropriately place seniors and widows at risk that often results in the loss of their life savings, and then show no mercy and use the legal system to aggressively defend situations that appear indefensible.
Justice Kawley's remarks confirm that the industry will not only breach the rules in victimizing clients, but will also lie to circumvent the law.
INVESTOR BEWARE!
However Justice Khawley's decision points up the deterioration of morality and ethics in our society that is creating an untenable situation for investors. Justice Khawley states that executives from RBC's investment banking arm are not very credible.
When our investment industry will not tell the truth to a judge in court, how can investors think that the investment advisors will tell them the truth. Almost every day we hear of situations where financial advisors, auditors and corporate executives are making misstatements, or if they are in court have selectively lost their memory of certain events.
How does RBC react to this? Moorcroft, a spokesman for RBC, said Justice Khawley's comments about DS witnesses is a "side issue" and "the credibility of individual witnesses are not on trial here". The industry apparently condones, if not demands, this behaviour.
Well, it's time that the credibility of the investment industry is put on trial.
Meanwhile, all investors should realize that with the lack of investor protection, the lack of enforcement, and the failure of the SROs to regulate their members, Canadian investors are in an INVESTOR BEWARE situation.
Investors must make themselves aware of how the industry operates with a cavalier attitude towards investors savings, and a callous attitude towards small investors. The industry is willing to engage in practices that will result in the decimation of life savings and disregard the needs of their clients. They will inappropriately place seniors and widows at risk that often results in the loss of their life savings, and then show no mercy and use the legal system to aggressively defend situations that appear indefensible.
Justice Kawley's remarks confirm that the industry will not only breach the rules in victimizing clients, but will also lie to circumvent the law.
INVESTOR BEWARE!
Friday, July 08, 2005
Silencing Investor Advocates
The investment industry is successful in covering up widespread practices of wrongdoing. This is accomplished by failure to disclose and by intimidating those who would speak out.
The industry lobbyists are publishing a story that is not entirely true. There is a failure to admit reality and a failure to reveal the extent of wrongdoing. The regulators are either not fully aware of the wrongdoing or are involved in the cover-up.
The OSC Town Hall Event attracted a crowd of 500 people. This was living proof that it is not only a dozen people complaining about the wrongdoing as claimed by industry. There are thousands of aggrieved investors and many are prepared to speak out. There are countless others who have been victimized by the industry and then intimidated into settling their dispute for pennies on the dollar and signing a gag order. The public may never hear from these victims.
The Internet is empowering. It enables people to speak out. There are websites springing up that reveal this wrongdoing. One of the websites that provided an incredible amount of information was www.regulators.itgo.com that provided an archives of information. Investor advocates, investors and journalists began to rely upon this website for information.
Now this valuable website has become inoperative. It appears it has been forced to close.
In the recent past http://www.gadsdencreative.com/news.html was also taken down. Stephen Gadsden had written an Open Letter to Canadians that spoke out about wrongdoing by the industry. It was unflattering to say the least, but seemed consistent with other sources and appeared to be based upon first hand knowledge. Over a period of a few weeks the letter disappeared and later the whole website was taken down.
There have been other websites including www.badbroker.com and Jim Roache's website that was focused on one of the major brokerages. Jim was able to maintain his website for many years but in the end his website also became history. Thankfully Jim is still alive and active and devoting his many talents to helping others.
Individuals are unable to withstand the onslaught of nuisance lawsuits that the industry employs to silence those who would speak out.
That is why Canadian investors need an Investor Protection Agency funded by the Federal Government with a mandate to protect investors. Such an agency would have a national register of white collar criminals that would be available to investors showing the details of the misdeeds.
It will only be when there is transparency and an openness that enables investors to learn the truth that investors may place their trust in an industry that is driven by greed and has a cavalier and callous attitude towards investors.
Industry's attempts to woo the public with public proclamations of good intentions and displays of codes of ethics are rather unconvincing when industry's actions show their behaviour.
The mutual fund market timing scandal in December, when eight of the largest financial institutions stated they did nothing wrong when they took from the investors to enrich themselves, illustrates an attitude of industry greed and a cavalier attitude towards investors and their life savings.
The Portus, Crocus, and Norshield scandals further illustrate the industry's intent to loot the small investors' savings to benefit the financial institutions.
The Alberta Securities Commission scandal suggests the industry attitude of supporting systemic wrongdoing may permeate the regulators. The Manitoba Securities Commission has been named as one of the defendants in a Class Action lawsuit. Investors need a national authority with a mandate to protect consumer/investor interests.
Now the move by provincial legislatures to reduce limitation periods for civil litigation from six years to two years indicates that not only small investors rights, but the rights of all Canadians are being eroded. Many victimized investors already found it difficult to commence civil action within the six year limitation period. The reduction to two years will deny many victims their right to take civil action.
It seems that investors will have to look after themselves and will not be able to depend on the regulators to provide appropriate safeguards.
All Canadians must speak out and contact their political representatives. If Canadians fail to speak out and hold our leaders accountable they will be contributing to the victimization of our widows and seniors and leaving a sorry state for our descendants.
Industry has shown they will silence those who speak out by using intimidation.
The industry lobbyists are publishing a story that is not entirely true. There is a failure to admit reality and a failure to reveal the extent of wrongdoing. The regulators are either not fully aware of the wrongdoing or are involved in the cover-up.
The OSC Town Hall Event attracted a crowd of 500 people. This was living proof that it is not only a dozen people complaining about the wrongdoing as claimed by industry. There are thousands of aggrieved investors and many are prepared to speak out. There are countless others who have been victimized by the industry and then intimidated into settling their dispute for pennies on the dollar and signing a gag order. The public may never hear from these victims.
The Internet is empowering. It enables people to speak out. There are websites springing up that reveal this wrongdoing. One of the websites that provided an incredible amount of information was www.regulators.itgo.com that provided an archives of information. Investor advocates, investors and journalists began to rely upon this website for information.
Now this valuable website has become inoperative. It appears it has been forced to close.
In the recent past http://www.gadsdencreative.com/news.html was also taken down. Stephen Gadsden had written an Open Letter to Canadians that spoke out about wrongdoing by the industry. It was unflattering to say the least, but seemed consistent with other sources and appeared to be based upon first hand knowledge. Over a period of a few weeks the letter disappeared and later the whole website was taken down.
There have been other websites including www.badbroker.com and Jim Roache's website that was focused on one of the major brokerages. Jim was able to maintain his website for many years but in the end his website also became history. Thankfully Jim is still alive and active and devoting his many talents to helping others.
Individuals are unable to withstand the onslaught of nuisance lawsuits that the industry employs to silence those who would speak out.
That is why Canadian investors need an Investor Protection Agency funded by the Federal Government with a mandate to protect investors. Such an agency would have a national register of white collar criminals that would be available to investors showing the details of the misdeeds.
It will only be when there is transparency and an openness that enables investors to learn the truth that investors may place their trust in an industry that is driven by greed and has a cavalier and callous attitude towards investors.
Industry's attempts to woo the public with public proclamations of good intentions and displays of codes of ethics are rather unconvincing when industry's actions show their behaviour.
The mutual fund market timing scandal in December, when eight of the largest financial institutions stated they did nothing wrong when they took from the investors to enrich themselves, illustrates an attitude of industry greed and a cavalier attitude towards investors and their life savings.
The Portus, Crocus, and Norshield scandals further illustrate the industry's intent to loot the small investors' savings to benefit the financial institutions.
The Alberta Securities Commission scandal suggests the industry attitude of supporting systemic wrongdoing may permeate the regulators. The Manitoba Securities Commission has been named as one of the defendants in a Class Action lawsuit. Investors need a national authority with a mandate to protect consumer/investor interests.
Now the move by provincial legislatures to reduce limitation periods for civil litigation from six years to two years indicates that not only small investors rights, but the rights of all Canadians are being eroded. Many victimized investors already found it difficult to commence civil action within the six year limitation period. The reduction to two years will deny many victims their right to take civil action.
It seems that investors will have to look after themselves and will not be able to depend on the regulators to provide appropriate safeguards.
All Canadians must speak out and contact their political representatives. If Canadians fail to speak out and hold our leaders accountable they will be contributing to the victimization of our widows and seniors and leaving a sorry state for our descendants.
Industry has shown they will silence those who speak out by using intimidation.
Labour-sponsored Funds
Buzz Hargrove, national president of the Canadian Auto Workers, writes in the National Post, page FP19, July 8th, 2005; "There are about 120 labour-sponsored funds in Canada. Two-thirds of them lost money over the past year (even as the TSX composite was gaining more than 20%). None of the 10 largest labour funds has generated a positive return over the last five years."
Hargrove supports government efforts to stimulate investment spending but says "labour funds are not the way to do it. They are wasteful, ineffective and damaging to the integrity of those unions that have involved themselves in them."
Crocus is recently the most prominent labour sponsored fund to encounter difficulty, but there are many others.
Small investors would be well advised to avoid investing in any investment products that they do not fully understand. Whether it is labour sponsored funds or guaranteed investments, investigate before you invest. Money lost is difficult to regain. Determine the risks related to the investments. If there is a guarantee determine what is the guarantee and who provides it? A guarantee to get all of your money back in ten years means you have given a ten year loan interest free.
Investors should be aware of the associated risks prior to investing in any product.
Hargrove supports government efforts to stimulate investment spending but says "labour funds are not the way to do it. They are wasteful, ineffective and damaging to the integrity of those unions that have involved themselves in them."
Crocus is recently the most prominent labour sponsored fund to encounter difficulty, but there are many others.
Small investors would be well advised to avoid investing in any investment products that they do not fully understand. Whether it is labour sponsored funds or guaranteed investments, investigate before you invest. Money lost is difficult to regain. Determine the risks related to the investments. If there is a guarantee determine what is the guarantee and who provides it? A guarantee to get all of your money back in ten years means you have given a ten year loan interest free.
Investors should be aware of the associated risks prior to investing in any product.
Thursday, June 23, 2005
"Mundane" crimes can still be devastating
Letters to the Editor – National Post June 22, 2005
Re: Statute of limitations may wipe 800 rapes from books, June 21
While noting that New York state is one of the few jurisdictions to have a statute of limitation on rape, this article notes that "Canada has long since abolished statute of limitations provisions for all but mundane crimes." The question is: How do you define “Mundane”?
Seniors and widows being robbed of their life savings is a life-altering event that is anything but mundane and also should have no statute of limitations yet it does. Some refer to financial predatory practices as financial rape or financial assault.
The victims are traumatized. Many suffer depression. Some commit suicide.
In Ontario, the reduction in the limitation period for taking civil action from six years to two years will no doubt result in many seniors and widows being deprived of the right to pursue redress through the courts. This is a great injustice.
Stan I. Buell
Small Investor Protection Association
Re: Statute of limitations may wipe 800 rapes from books, June 21
While noting that New York state is one of the few jurisdictions to have a statute of limitation on rape, this article notes that "Canada has long since abolished statute of limitations provisions for all but mundane crimes." The question is: How do you define “Mundane”?
Seniors and widows being robbed of their life savings is a life-altering event that is anything but mundane and also should have no statute of limitations yet it does. Some refer to financial predatory practices as financial rape or financial assault.
The victims are traumatized. Many suffer depression. Some commit suicide.
In Ontario, the reduction in the limitation period for taking civil action from six years to two years will no doubt result in many seniors and widows being deprived of the right to pursue redress through the courts. This is a great injustice.
Stan I. Buell
Small Investor Protection Association
Wednesday, June 22, 2005
New Chair for the OSC
There are no surprises here. Industry does not want to lose control. This proposed appointment reinforces the need for a national Investor Protection Agency to provide investor protection.
Industry and the regulators have failed to protect investors. They say that investor protection is important but they also claim their actions are preventative and not remedial. This is no help to the widows, seniors and other Canadians that lose their life savings due to wrongdoing and unsavoury sales practices of the investment industry at large.
It is not enough for the regulators to say these so-called investment advisors are registered as sales representatives and that they have no control over job titles such as investment advisor or consultant. This is misleading the public at best.
Is there no sense of honesty within the regulatory system? How can the regulators allow the industry to falsely advertise that they are providing advice and then deny responsibility by saying in reality the representatives are only salespeople without fiduciary obligations?
It is time to either hold the industry accountable, or to warn the public that the investment industry are robbers in white collars. Regulators must warn the public to be be wary in dealing with the investment industry. Regulators must disclose the wrongdoing that permeates the industry and creates so many victims each year.
Maybe with this new appointment the public will realize it is Caveat Investor!
Let the new chair show by his actions that he is not what he seems to be and that he is prepared to act as a regulator should to protect the public.
Industry and the regulators have failed to protect investors. They say that investor protection is important but they also claim their actions are preventative and not remedial. This is no help to the widows, seniors and other Canadians that lose their life savings due to wrongdoing and unsavoury sales practices of the investment industry at large.
It is not enough for the regulators to say these so-called investment advisors are registered as sales representatives and that they have no control over job titles such as investment advisor or consultant. This is misleading the public at best.
Is there no sense of honesty within the regulatory system? How can the regulators allow the industry to falsely advertise that they are providing advice and then deny responsibility by saying in reality the representatives are only salespeople without fiduciary obligations?
It is time to either hold the industry accountable, or to warn the public that the investment industry are robbers in white collars. Regulators must warn the public to be be wary in dealing with the investment industry. Regulators must disclose the wrongdoing that permeates the industry and creates so many victims each year.
Maybe with this new appointment the public will realize it is Caveat Investor!
Let the new chair show by his actions that he is not what he seems to be and that he is prepared to act as a regulator should to protect the public.
Tuesday, June 21, 2005
STATUTE OF LIMITATIONS MAY WIPE 800 RAPES FROM BOOKS
NEW YORK STATE SENATOR SEEKS TO OVERTURN LAW
The National post on June 21, 2005, carried Steven Edwards report from New York that city police are shelving more than 800 rape investigations because of an "outdated" law providing only a five year window for prosecuting sexual assault crimes.
Over the years this has allowed thousands of rapists to escape justice by beating the clock.
Every year thousands of Canadians including widows and seniors are suffering financial assault crimes when widespread investment industry wrongdoing robs them of their savings.
Most provinces have recently reduced the limitation period from six years to two years for civil actions. Most victims are unable to react in such a short time frame. This will mean that financial predators will escape justice by beating the clock and victims of white collar crime will be statute barred from taking legal action.
Where were the regulators and agencies that provide investor protection when this erosion of Canadian rights was being legislated.
Who is responsible for this irresponsible legislation.
Who will champion the need to eliminate limitation periods for white collar crime that robs widows and seniors of their life savings?
The National post on June 21, 2005, carried Steven Edwards report from New York that city police are shelving more than 800 rape investigations because of an "outdated" law providing only a five year window for prosecuting sexual assault crimes.
Over the years this has allowed thousands of rapists to escape justice by beating the clock.
Every year thousands of Canadians including widows and seniors are suffering financial assault crimes when widespread investment industry wrongdoing robs them of their savings.
Most provinces have recently reduced the limitation period from six years to two years for civil actions. Most victims are unable to react in such a short time frame. This will mean that financial predators will escape justice by beating the clock and victims of white collar crime will be statute barred from taking legal action.
Where were the regulators and agencies that provide investor protection when this erosion of Canadian rights was being legislated.
Who is responsible for this irresponsible legislation.
Who will champion the need to eliminate limitation periods for white collar crime that robs widows and seniors of their life savings?
SIPA WARNS INVESTORS RE LIMITATION PERIODS
SIPA issues Warning to Investors re limitation period The Small Investor Protection Association (SIPA) participated in the OSC Town Hall Event on May 31st, in Toronto. A crowd of over 500 turned out to voice their anger, discontent, and frustration with the widespread wrongdoing in the investment industry and the regulators’ failure to provide adequate investor protection and satisfactory means to resolve disputes.
This OSC Event confirmed that investor protection is lacking, and that there are no satisfactory means of resolving disputes except civil litigation. Now, that last bastion of help for investors is being threatened. Many investors are not aware that during the last two years limitation periods, the time period within which a legal action must be started after an event of wrongdoing, have been reduced from six years to two years in several provinces, including Ontario, Alberta, and Saskatchewan.
Investors are warned that reduction of the limitation period for taking civil action could have serious consequences if you have a complaint. SIPA recommends that aggrieved investors should speak immediately with a qualified securities litigation lawyer to determine how limitation periods could effect you, and determine an appropriate course of action prior to initiating any other complaint procedures.
SIPA is seeking to clarify this issue with governments and regulators across Canada, and will be issuing an interim report on the limitation period issue later in June that includes responses from governments and regulators. Regulators are reacting to SIPA’s concerns and are investigating. David Brown, Chair of the Ontario Securities Commission, yesterday told the Senate Banking Committee this limit may need to be reviewed and changed. Brown has also spoken with the Ontario Attorney General on this matter.
This OSC Event confirmed that investor protection is lacking, and that there are no satisfactory means of resolving disputes except civil litigation. Now, that last bastion of help for investors is being threatened. Many investors are not aware that during the last two years limitation periods, the time period within which a legal action must be started after an event of wrongdoing, have been reduced from six years to two years in several provinces, including Ontario, Alberta, and Saskatchewan.
Investors are warned that reduction of the limitation period for taking civil action could have serious consequences if you have a complaint. SIPA recommends that aggrieved investors should speak immediately with a qualified securities litigation lawyer to determine how limitation periods could effect you, and determine an appropriate course of action prior to initiating any other complaint procedures.
SIPA is seeking to clarify this issue with governments and regulators across Canada, and will be issuing an interim report on the limitation period issue later in June that includes responses from governments and regulators. Regulators are reacting to SIPA’s concerns and are investigating. David Brown, Chair of the Ontario Securities Commission, yesterday told the Senate Banking Committee this limit may need to be reviewed and changed. Brown has also spoken with the Ontario Attorney General on this matter.
Saturday, June 04, 2005
INVESTOR BEWARE - Investor protection is being eroded
The OSC Investor Town Hall Event has not received the media coverage that is due. The Event is probably the most important event for investors and investor protection ever. This was the first time that the regulatory leaders came face to face with small investors in the public eye.
There were issues brought up by investor advocates that deserve public airing. These are on the public record and the OSC has undertaken to respond to all of the questions submitted through SIPA during the month preceding the event.
Initial estimates of attendance were in the 100 to 200 range, so 200 seats were ordered for a space that could accommodate 500. As many people began to pre-register for the event it was obvious additional seats would be needed so the
OSC ordered more seats.
By the day of the event over 400 had already registered. A decision was made that priority would be given to questions from the audience, and the OSC undertook to provide responses to all questions submitted through SIPA at a later date.
That evening of May 31st the CBC Atrium was filled. There was no lack of questions and comments. There was emotion. Some anger. Some grief.
The meeting ran overtime. Still there were hands going up and line-ups at the two floor microphones when the meeting was closed.
The small investor situation was summed up by a brave lady who admitted they had lost their life savings of $170,000 and finally settled with the bank owned brokerage for $30,000 in returned fees, and signed a gag order to protect the bank from being exposed. They did not know where to turn and asked if there was anything that can be done. The regulators said too bad. It's too late. You settled and signed a gag. A cold, hard hearted, insensitive response. It's time for a better system.
Ken Kivenko raised the issue of limitation periods and the fact that Ontario reduced the six year period to two years. Most people are not aware that there is a limitation period for taking legal action from the time that you become aware or should have come aware of a problem.
Many victims of financial crime have trouble meeting the six year requirement. CARP and SIPA had requested that the six year limitation period be increased to seven years.
Now Ontario has reduced it to two.
SIPA will pursue this issue by every avenue available as we believe it is the single most important issue for investors. The industry and the regulatory system has failed to provide adequate investor protection. Investors are losing billions of dollars each year due to wrongdoing. Their only safeguard has been the right to take civil action. Now this right is being eroded by reducing limitation periods.
It seems we have come full circle and we are now back to "INVESTOR BEWARE"!
There were issues brought up by investor advocates that deserve public airing. These are on the public record and the OSC has undertaken to respond to all of the questions submitted through SIPA during the month preceding the event.
Initial estimates of attendance were in the 100 to 200 range, so 200 seats were ordered for a space that could accommodate 500. As many people began to pre-register for the event it was obvious additional seats would be needed so the
OSC ordered more seats.
By the day of the event over 400 had already registered. A decision was made that priority would be given to questions from the audience, and the OSC undertook to provide responses to all questions submitted through SIPA at a later date.
That evening of May 31st the CBC Atrium was filled. There was no lack of questions and comments. There was emotion. Some anger. Some grief.
The meeting ran overtime. Still there were hands going up and line-ups at the two floor microphones when the meeting was closed.
The small investor situation was summed up by a brave lady who admitted they had lost their life savings of $170,000 and finally settled with the bank owned brokerage for $30,000 in returned fees, and signed a gag order to protect the bank from being exposed. They did not know where to turn and asked if there was anything that can be done. The regulators said too bad. It's too late. You settled and signed a gag. A cold, hard hearted, insensitive response. It's time for a better system.
Ken Kivenko raised the issue of limitation periods and the fact that Ontario reduced the six year period to two years. Most people are not aware that there is a limitation period for taking legal action from the time that you become aware or should have come aware of a problem.
Many victims of financial crime have trouble meeting the six year requirement. CARP and SIPA had requested that the six year limitation period be increased to seven years.
Now Ontario has reduced it to two.
SIPA will pursue this issue by every avenue available as we believe it is the single most important issue for investors. The industry and the regulatory system has failed to provide adequate investor protection. Investors are losing billions of dollars each year due to wrongdoing. Their only safeguard has been the right to take civil action. Now this right is being eroded by reducing limitation periods.
It seems we have come full circle and we are now back to "INVESTOR BEWARE"!
Monday, May 02, 2005
Investment Industry Cover-up, Gag Orders & Threats
Although some of our regulatory leaders say they believe in transparency, nothing is being done about the industry practice of covering up widespread wrongdoing and then settling with plaintiffs by paying pennies on the dollar and covering up with gag orders.
The industry also gags registered representatives from speaking out with the threat of expulsion, not just from their jobs but the industry. Most either stay and remain silent or quietly change careers. The few that speak out are ostracized and persecuted with lawsuits and Anton Pillar orders.
Kent Shirley attempted to speak out but was slapped with an Anton Pillar order preventing him from speaking out and the confiscation of his computer. The issue remains unresolved. Joe Killoran has picked up the torch from Kent Shirley and now faces legal action. Stephen Gadsden was convinced to take down his open letter to Canadians. Jonathan Chevreau's article was not published.
The media also seems to be muffled by industry. The Bre-X stifling is an excellent example; the Toronto papers did not print a word of the case in Ottawa, and the Ottawa press was strangely silent the second day. Scam of the century became secret of the century.
The industry approach of intimidation and threats is illustrated by the ASC's firing of one of those who came forward to tell the truth. The ASC has called them cowardly for acting anonymously and then demonstrates what will happen if they are identified.
We need TruthTeller legislation to protect the many who will come forward. As long as we allow the industry to continue to cover-up with lack of disclosure, gag orders and threats to employees, small investors will remain at risk and it really is an "Investor Beware" situation, as Robert Goldin so aptly named his book published six years ago.
It is time for an Inquiry Commission into widespread industry wrongdoing, industry cover-up, and regulatory failure to provide investor protection. That is why SIPA is calling for an inquiry in our submission to the Senate Standing Committee on Banking Trade and Commerce
The allegations by 35 members of the Alberta Securities Commission staff suggest that industry corruption may even permeate the regulators
The industry also gags registered representatives from speaking out with the threat of expulsion, not just from their jobs but the industry. Most either stay and remain silent or quietly change careers. The few that speak out are ostracized and persecuted with lawsuits and Anton Pillar orders.
Kent Shirley attempted to speak out but was slapped with an Anton Pillar order preventing him from speaking out and the confiscation of his computer. The issue remains unresolved. Joe Killoran has picked up the torch from Kent Shirley and now faces legal action. Stephen Gadsden was convinced to take down his open letter to Canadians. Jonathan Chevreau's article was not published.
The media also seems to be muffled by industry. The Bre-X stifling is an excellent example; the Toronto papers did not print a word of the case in Ottawa, and the Ottawa press was strangely silent the second day. Scam of the century became secret of the century.
The industry approach of intimidation and threats is illustrated by the ASC's firing of one of those who came forward to tell the truth. The ASC has called them cowardly for acting anonymously and then demonstrates what will happen if they are identified.
We need TruthTeller legislation to protect the many who will come forward. As long as we allow the industry to continue to cover-up with lack of disclosure, gag orders and threats to employees, small investors will remain at risk and it really is an "Investor Beware" situation, as Robert Goldin so aptly named his book published six years ago.
It is time for an Inquiry Commission into widespread industry wrongdoing, industry cover-up, and regulatory failure to provide investor protection. That is why SIPA is calling for an inquiry in our submission to the Senate Standing Committee on Banking Trade and Commerce
The allegations by 35 members of the Alberta Securities Commission staff suggest that industry corruption may even permeate the regulators
Sunday, May 01, 2005
Toronto Investor Town Hall Meeting - May 31st, 2005
May 31, 2005 - Town Hall Meeting - Toronto - FREE ADMISSION
Information booths and refreshments. An educational evening. Ask questions directly to the top regulators. This is the first time top regulators have met with the public in Toronto. Most people pay hundreds of dollars to hear the regulators. This event if FREE for investors.
Pre-register for Investor Town Hall
The Ontario Securities Commission Town Hall Meeting is scheduled for Tuesday, May 31st at 6:30pm at the Canadian Broadcasting Centre, 250 Front Street, Toronto. This will be an opportunity for investors to ask questions to a panel of the top regulators in Ontario including the Ontario Securities commission (OSC), Investment Dealers Association (IDA) the Mutual Fund Dealers Association and the Ombudsman for Banking Services and Investments (OBSI).
The five person panel will feature:
David A. Brown, Q.C., Chair OSC
Stan I. Buell, P.Eng., President SIPA
Michael Lauber, FCA, Ombudsman & CEO OBSI
Joseph J. Oliver, President & CEO IDA
Larry M. Waite, President & CEO MFDA
Mike Hornbrook of CBC Radio will be the moderator and present questions received to the panel for response.
Linda Leatherdale, money editor for the Toronto Sun and host of Linda's Moneyshow, and James Daw, columnist with the Toronto Star, will be inviting questions from those in attendance.
CARP is participating in this event and will have copies of their report "CARP's fight against scams and frauds" and other material available for investors.
The regulators will have booths with free documentation available for investors.
Anyone who is unable to attend the meeting may submit questions to the OSC at Telephone: 416-593-7744, Toll Free: 1-800-465-9670 or send by e-mail to: townhall@osc.gov.on.ca.
Members and others may also submit their questions to the Small Investor Protection Association by e-mail to sipa@sipa.to or by post to: SIPA, P.O.Box 325, Markham, ON, L6B 1A8. Questions will be given to the moderator for presentation to the panel.
You can register at the door, or register in advance by calling the OSC at 416-593-7744 or e-mail the OSC at townhall@osc.gov.on.ca. Seating is available for 500 so pre-register and arrive early for the best seats.
For more information and to register online, click on the Investor Town Hall.
Bring your friends, sit back and listen to a question and answer session. The moderators will ask the questions that are sent in and will take questions from the audience.
Information booths and refreshments. An educational evening. Ask questions directly to the top regulators. This is the first time top regulators have met with the public in Toronto. Most people pay hundreds of dollars to hear the regulators. This event if FREE for investors.
Pre-register for Investor Town Hall
The Ontario Securities Commission Town Hall Meeting is scheduled for Tuesday, May 31st at 6:30pm at the Canadian Broadcasting Centre, 250 Front Street, Toronto. This will be an opportunity for investors to ask questions to a panel of the top regulators in Ontario including the Ontario Securities commission (OSC), Investment Dealers Association (IDA) the Mutual Fund Dealers Association and the Ombudsman for Banking Services and Investments (OBSI).
The five person panel will feature:
David A. Brown, Q.C., Chair OSC
Stan I. Buell, P.Eng., President SIPA
Michael Lauber, FCA, Ombudsman & CEO OBSI
Joseph J. Oliver, President & CEO IDA
Larry M. Waite, President & CEO MFDA
Mike Hornbrook of CBC Radio will be the moderator and present questions received to the panel for response.
Linda Leatherdale, money editor for the Toronto Sun and host of Linda's Moneyshow, and James Daw, columnist with the Toronto Star, will be inviting questions from those in attendance.
CARP is participating in this event and will have copies of their report "CARP's fight against scams and frauds" and other material available for investors.
The regulators will have booths with free documentation available for investors.
Anyone who is unable to attend the meeting may submit questions to the OSC at Telephone: 416-593-7744, Toll Free: 1-800-465-9670 or send by e-mail to: townhall@osc.gov.on.ca.
Members and others may also submit their questions to the Small Investor Protection Association by e-mail to sipa@sipa.to or by post to: SIPA, P.O.Box 325, Markham, ON, L6B 1A8. Questions will be given to the moderator for presentation to the panel.
You can register at the door, or register in advance by calling the OSC at 416-593-7744 or e-mail the OSC at townhall@osc.gov.on.ca. Seating is available for 500 so pre-register and arrive early for the best seats.
For more information and to register online, click on the Investor Town Hall.
Bring your friends, sit back and listen to a question and answer session. The moderators will ask the questions that are sent in and will take questions from the audience.
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