Service NL
April 16, 2015
Public Advisory: Public Advised of Possible Fraudulent Activity
Service NL is cautioning the public about fraudulent activity by companies that trade in binary options. The department has received consumer complaints from consumers that they have been contacted at their residences by individuals representing Magellan Trading Group International (MTGI) and Stratus Financial Group International (SFGI). Individuals with both companies, which have been traced to San Jose, Costa Rica, are providing false and misleading information, placing potential investors at risk.
A binary option is a type of option whose payout depends on whether the underlying asset (such as a stock, a commodity, a currency pairing, etc.) increases or decreases in value. Options are considered to be securities under Newfoundland and Labrador�s securities legislation.
Securities regulators in other regions of Canada have also issued warnings about these companies. Residents are advised not to deal with individuals or firms that are not registered under the provincial Securities Act to trade or provide advice in securities.
Anyone who has been contacted by any individual claiming to represent Magellan Trading Group International or Stratus Financial Group International is asked to contact the Financial Services Regulation Division with Service NL at (709) 729-2596.
Consumer alerts have been posted to the Service NL website: www.servicenl.gov.nl.ca/consumer_alerts.html.
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Media contact:
| Jason Card Director of Communications Service NL 709-729-4860, 699-0470 jasoncard@gov.nl.ca |
2015 04 16 11:55 a.m.