Do you have financial problems?

Do you have financial problems? Fraudsters could take advantage of your situation to make you an illegal offer: withdrawing money - tax-free - from your registered retirement savings plan (RRSP), your locked-in retirement account (LIRA) or your pension fund.

Here is an example of the type of ad they might use:

How the scam works

Here’s an example: The fraudster offers you his so-called expertise to conduct transactions in your name. He asks you to :

  • Transfer your RRSP or LIRA to an investment dealer (a discount brokerA discount broker is a broker who makes it possible to buy and sell securities (shares, etc.) at a lower price. In general, the broker does not offer clients any personalized advice.

    A discount broker often has a website that allows clients to carry out transactions on their own, without any human contact.  
    or an on-line dealer). This type of dealer gives you an account that you can access using a password.
  • Give him your password so he can access your account to manage your investments.

Here is a scenario a fraudster might use to make a profit at your expense:

  1. Using his own money, the fraudster buys a large number of sharesA share, also referred to as stock, is an equity security that entitles you to an ownership interest in a company.

    The company can distribute a portion of its earnings to shareholders by paying them a dividend.

    The shares of companies listed on an exchange are bought and sold at the exchange.

    When a company ceases to operate, the proceeds from the sale of its assets are used to pay its debts and taxes, and the rest of the money is distributed to shareholders.
    in a small company. The company’s shares aren’t in great demand and are not highly liquid. They’re worth almost nothing.
  2. He then buys shares in the company in your name, using your money, but at a high price. This is possible, since the shares are not widely sold. The share price jumps temporarily.
  3. The fraudster takes advantage of the situation to sell his own sharesA share, also referred to as stock, is an equity security that entitles you to an ownership interest in a company.

    The company can distribute a portion of its earnings to shareholders by paying them a dividend.

    The shares of companies listed on an exchange are bought and sold at the exchange.

    When a company ceases to operate, the proceeds from the sale of its assets are used to pay its debts and taxes, and the rest of the money is distributed to shareholders.
    . He makes a big profit.
  4. Since no one else wants to buy these shares, their price tanks. Your investment is now practically worthless. You’ve lost most of your investment.
Warning
  • Withdrawals from your RRSP, LIRA or pension fund are taxable. You should therefore be careful if someone tells you otherwise.  
  • Make sure the representative and firm you’re dealing with are authorized by the AMF to sell the product they are offering. Simply call the AMF for confirmation.

End of the warning

Do you think you’ve been the victim of a fraudster? Report possible fraud!

Insight

Register of firms and individuals authorized to practise

Check whether your representative is authorized to sell. you the product he is offering you

End of the insight