Investors be wary, Quebec securities regulator warns
Last Updated: Thursday, November 5, 2009 | 4:01 PM ET
CBC News
Quebec television host Guy Mongrain was duped out of $300,000 by a friend and registered financial advisor. (CBC) Quebec's securities regulator has launched an awareness campaign to help investors protect their nest eggs following a series of high-profile cases of fraud in the province.
The goal of the campaign is to help educate people about the need to investigate before investing their money.
"The first line of defence against fraud is the consumer," said Jean St-Gelais, president of the l’Authorité des marchés financiers (AMF).
St-Gelais said officials hoped to put a human face on the message by investing $1 million in radio and television ads featuring well-known television host Guy Mongrain.
Mongrain was defrauded out of $300,000 after investing with a friend and registered financial advisor.
"I had full confidence in him," Mongrain said. "I could not believe that someone like him could do that to me. What I learned? Doubt. The worse lesson I learned in my life."
Educate yourself
One of the most important steps investors should take is to make sure they are working with a financial advisor who is registered with the AMF, St-Gelais said.
St-Gelais acknowledged that sometimes, even that won't help. The former Norboug president Vincent Lacroix, recently convicted in connection with the biggest case of investment fraud in the province's history, was registered with the AMF.
Lacroix pleaded guilty to charges of having bilked 9,200 investors out of more than $100 million.
"We cannot guarantee anyone 100 per cent there are no chances of fraud," St-Gelais said. "But if you work with us … the chances are lower."
"If you have any doubts [about your investments], … ask for a second opinion."
St-Gelais said too often people, especially seniors, get taken advantage of by people who are close to them.
"If it seems too good to be true, [it] probably is," said St-Gelais.
The AMF is also stepping up its efforts to catch fraudsters, St-Gelais said.
