HALIFAX- Nova Scotia’s investment watchdog has issued a temporary cease trade order against a Costa Rica-based financial company it says is targeting investors in a boiler-room type of operation.
The Nova Scotia Securities Commission received three complaints against Stratus Financial Group International, Stratus Offshore and it’s principles Magnus Torgenson and John Westbrook.
The complaints allege the company pressures potential investors to buy futures in natural gas and forex options.
Forex options involves derivative trading on foreign currencies, essentially buying foreign currencies at an agreed upon rate and selling it on an agreed date.
The commission says Stratus is not registered to sell securities in Nova Scotia and is using high pressure tactics to persuade buyers to invest.
It’s illegal to solicit investments in Nova Scotia without registering with the Securities Commission.
Boiler room operations use “sucker lists” to push highly speculative and risky investments on buyers.
The commission says there is high risk of fraud from dealing with those types of operations and urges potential investors to do research and check the credentials of companies offering investment opportunities.
Stratus is the subject of a permanent trading ban in New Brunswick.
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