Friday, July 1, 2011

Adam Keller and the Great White Capital Fraud

Well here's another case of investment fraud. This one involving a local company based on paper out of West Vancouver. David Baines from the Vancouver Sun reports that a B.C. man named Adam Keller found by the B.C. Securities Commission to have defrauded investors of more than $500,000 in a non-existent foreign exchange trading scheme has been banned from the B.C. securities market for life.

It is highly unlikely Keller will repay any of the money. He did not attend the hearing and his whereabouts are not known. However, he may still have a day of reckoning. The RCMP Commercial Crime Section is investigating with a view to laying criminal charges against him. This is yet another example of how Canada is soft on white collar crime.

At the time, Keller was the sole director and signing authority for Great White Capital Corp., a company headquartered in West Vancouver. The panel found that Keller perpetrated a fraud when he lied to investors, provided them with false account summaries, and failed to protect, secure, or return investors’ funds as promised. Additionally, Keller did not invest the funds solicited from investors, but instead used the funds for personal purposes.

Great White Capital Corp was registered in Alberta on June 23, 2009, and extra-provincially registered in British Columbia on June 26, 2009. Keller was a resident of British Columbia during the relevant period. He is the sole director of GWC, the Head Office of which is listed as being in West Vancouver, British Columbia.

Keller advised the Investors that their investments were making profits as a result of his trading on the foreign exchange market. Further, throughout 2009 and 2010 the Respondents provided individual account summaries to the Investors that purported to show that their investments were earning profits of approximately 7 to 27% per month. The account summaries were false, because the Respondents did not make the purported investments and no profits existed.

I'm not even sure what the B.C. securities market is. I know Vancouver lost it's Stock Exchange after W-5 did that news report about all the fraud and fake paper stocks. David Baines from the Vancouver Sun seems to have a good understand of what it is and how to regulate the fraud that currently exists in it.

My point is that investment fraud is a serious crime that affects all of us. This is what destabilizes markets. This is how pensions are lost and banks collapse. The bailouts of which cost taxpayers billions which the government tries to recoup by stealing out pensions. This perpetual con needs to be addressed and stopped. All I know is investment 101 declares diversification. Don't invest all your money in one high risk stock and avoid get rich quick scams like the plague.

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