April 9, 2009 Investor warnings - News

Montréal – The Autorité des marchés financiers (AMF) is urging investors to be cautious about the following firms and representatives:

• Lehman Brothers & Associates Corp. (Samuel Lehman, Michael Lehman, Mark Lehman, James Smythe, Greg Marks, David Rosen, Karen Black, Janice Caplan, Susan Weinberg, Joanne Highland, Steven Anderson, Kevin Solomon, Christopher Price, Jordan Cohen, Ray Schwarz);
• Peterson & Rothschild Associates (Linsay Browne, Andrew Kingsley).

Lehman Brothers & Associates Corp. is not related to the U.S. merchant bank Lehman Brothers Holdings Inc., which filed for bankruptcy protection in September 2008.

These firms, which claim to be operating in the mergers and acquisitions industry, have allegedly solicited investors by telephone, primarily residents in the U.K. and Denmark. Residents in Saskatchewan have also been solicited by representatives of Lehman Brothers & Associates Corp. The firms have proposed to buy their low-value shares for far more than their market value. To complete the transaction, investors are asked to deposit a "refundable" fee via electronic funds transfer. Once the transfer is completed, both the representatives and the money disappear.

The firms referred to in this AMF warning mention that their offices are located in Montréal, which is not the case according to research conducted by AMF Investigations. The AMF is currently working in co-operation with the Saskatchewan Financial Services Commission in the matter of Lehman Brothers & Associates Corp.

At this point, it is not known whether Québec investors were contacted. The firms are not registered with the AMF to carry on business as a securities dealer or adviser and are therefore not authorized to solicit investors in Québec.

The AMF reminds investors that they should always check with the AMF Information Centre that the firms and individuals offering to act as intermediaries have the necessary approvals from the AMF. "Investors should be very cautious when a firm offers to buy their shares for more than they are actually worth, especially if asked to pay a fee up front," said Anne-Marie Poitras, Superintendent, AMF Client Services and Compensation. In several similar cases, investors lost their deposits and never received the money they were promised," she added.

For further information, read Red-Flagging Financial Fraud. You can download this brochure from the AMF website or order it through the AMF Information Centre. It will help you recognize several types of illegal tactics, and provides tips to keep you on guard against fraud artists.

If you believe you have been approached by one of these firms, 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:

Media only:
Sylvain Théberge: (514) 940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337