May 11, 2010 Investor warnings - News Securities

Montréal – The Autorité des marchés financiers (AMF) is urging investors to be cautious about JM Finance Group, a company that has allegedly contacted foreign investors offering to redeem their shares at a price much higher than that generally offered on the market.

At this point, it is not known whether JM Finance Group has contacted Québec investors. However, its website indicates that its civic address is in Montréal although it does not have an established business at the address indicated. JM Finance Group is also apparently citing the Autorité des marchés financiers as a reference. The company is not registered with the AMF to carry on business as a securities dealer or adviser and therefore cannot solicit investors in Québec.

The JM Finance Group website also gives a telephone number used by another company which was the subject of a warning by the AMF in February 2009, namely, Andrew Clayton Advisors. The approach being used by JM Finance Group is similar to the strategy used by Andrew Clayton Advisors.

JM Finance Group is apparently offering to repurchase investors’ shares, which in some instances no longer have any value, at a much higher price than their actual value. To complete the transaction, investors are asked for a “refundable” fee payable by electronic transfer. “Investors should be very cautious when a company offers to purchase their shares at a price in excess of the actual value, especially if a fee is charged,” said Sophie Garon, AMF Director, Client Communications and Education. “In many such cases, investors have lost their deposits and never received the money as promised,” she added.

Based on documents investors received, the following individuals may be linked to JM Finance Group: David Ryan, Melissa Richards and George Taggart. None of these individuals are registered with the AMF.

Advice for investors

The AMF reminds investors to investigate before investing and to always ensure that the firms and individuals offering to act as intermediaries have the necessary approvals by checking the Register of firms and individuals authorized to practice on the AMF website or calling the Information Centre.

Consumers who believe that they have been targeted by a fraudulent scheme should contact the AMF Information Centre.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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Information:

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