Canadians told to halt Colorado securities sales
Canadian real estate interests have been ordered to stop selling securities in Colorado for allegedly violating securities-registration laws, state Securities Commissioner Fred Joseph announced Thursday.
Joseph said a final cease-and-desist order has been entered against Belize Equities Holding, also known as Belize Equities Inc.; Walter International Inc.; Ernie H.A. Walter, identified as “director and control person” of both companies; and Gerry D. Dyck, identified as working for Walter; all of Winnipeg, Manitoba. Joseph said the parties named in the order agreed to its terms.
The Colorado Division of Securities — a unit of the state Department of Regulatory Agencies — alleges that Walter attempted to sell securities by advertising in the business pages of The Denver Post for investments in real estate projects in San Pedro, on the resort island of Ambergris Caye in the Central American nation of Belize.
According to a filing by Joseph, a member of his staff posing as an investor was told that investors were guaranteed a 16 percent return for the next five years on a $40,000 investment, and that their money would be pooled with others to build condominiums in Belize.
Walter allegedly failed to register the security offering as required.
“Soliciting investors through general advertising for private offerings of securities is a violation of the law when those securities have not been registered,” Joseph said in a statement. “Investors should always be wary of stock offerings promoted through the use of general advertising, especially when the deal looks too good to be true. Contact our office to verify that securities have been properly registered before purchasing any security after seeing an ad.”
I saw this being offered on a real estate site as "Guaranteed 16% return". Be careful what you invest in people....
I am reminded yet again of a song called "Just Another Gringo...."