Public Advisory: Superintendent of Securities Issues Permanent Cease Trade Order to Glendale Growth & Trust, GT Serv Corp., and Leonard Goldman

Service NL advises that an investigation by the Financial Services Regulation Division uncovered evidence that Glendale Growth & Trust, GT Serv Corp., and Leonard Goldman, allegedly located in Zurich, Switzerland, unlawfully traded in securities and solicited Newfoundlanders and Labradorians to invest in the foreign exchange market, commonly known as forex, and other securities. Neither these entities nor the individual named have ever been registered under the Securities Act to solicit or trade in securities in this jurisdiction.

The investigation revealed that Goldman purchased infomercial time on radio stations in Newfoundland and Labrador and in at least one other province in Canada, soliciting residents to invest money though offshore wire transfers to the United Kingdom. Investigators believe that the funds were then transferred to other countries.

An administrative hearing was held in St. John’s on Wednesday, December 11; however, neither Glendale Growth & Trust, GT Serv Corp., nor Goldman appeared or responded to allegations made by Financial Services Regulation Division investigators. As a result of the hearing, the Superintendent of Securities issued a permanent Cease Trade Order prohibiting Glendale Growth & Trust, GT Serv Corp., Leonard Goldman and any other company or individual acting on their behalf, from acting, advertising, soliciting, conducting or negotiating directly or indirectly in furtherance of the trade of securities in the province.

The investigation is ongoing to determine the number of investors affected and what financial penalties should be levied against Glendale Growth & Trust, GT Serv Corp., and Leonard Goldman. Service NL recommends that individuals who invested with Glendale Growth & Trust contact the Financial Services Regulation Division at 709-729-2596 for additional information.

Residents are cautioned to do a background check to determine if an individual or company offering a forex investment is registered to sell investments or offer investment advice. Illegal or fraudulent forex trading schemes are often operated by individuals and companies that are located offshore.

Before sending money, particularly out of the country, for investments that appear to be too good to be true, residents should take time to know who they are dealing with. Investors can check registrations by visiting the Canadian Securities Administration website at www.securities-administrators.ca   and clicking on National Registration Search. If the company or individual is not registered, please notify Service NL by email at servicenlinfo@gov.nl.ca  or call the Financial Services Regulation Division at 709-729-2596.

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Media contact:
Vanessa Colman-Sadd
Director of Communications
Service NL
709-729-4860, 682-6593
vanessacolmansadd@gov.nl.ca 

2013 12 19             10:20 a.m.