WarningBeware of Triclean Enterprises and illegal investment offerings

Investor warnings - News Securities

Montréal – The Autorité des marchés financiers (AMF) urges investors to exercise caution regarding Triclean Enterprises Inc., and to always make sure that securities offered by companies have received necessary AMF approvals.

Triclean Enterprises Inc. (also known as Triclean Technologies) allegedly solicited investors by telephone to distribute securities without obtaining necessary approvals from provincial and territorial financial regulatory bodies. At least one Québec investor was apparently approached.

The AMF asks investors to exercise caution regarding investments that may be offered illegally, reminding them that in Québec a company seeking to raise funds for a public securities distribution must meet the requirements set out in the Securities Act and obtain AMF authorization. Generally, the company must issue a prospectus, financial statements, and other public information documents. Some companies flaunt these requirements and offer securities to the public illegally. The AMF emphasizes that investors should not purchase this kind of investment, which may be very risky and may have no resale value.

“We remind investors that they should obtain detailed information on companies before investing,” said Anne-Marie Poitras, Superintendent, AMF Client Services and Compensation. “Investors should have access to enough data to make informed decisions and to ensure that companies have obtained the necessary AMF authorizations. If someone recommends an investment to you but you aren’t able to obtain a prospectus, be cautious.”

In addition, investors should always evaluate whether investments are suitable for them. “Keep in mind that a prospectus isn’t a guarantee of an upcoming security’s quality or suitability for all investors. You and your financial representative must determine if a security is right for you. If you're making investment decisions without a representative, be sure you fully understand the information in the prospectus,” Ms. Poitras added.

She concluded with specific advice for investors:

  • Contact the AMF Information Centre to make sure that companies are authorized to make public distributions and that representatives recommending investments are licensed to practice in Québec.
  • Ask for written confirmation of information provided to you verbally, and do research on the companies in which you want to invest.
  • Don’t invest if the prospectus or financial statements are not available—even if you’re promised that “they’ll be available soon.”
  • Gather information on companies to learn about their history, operations, assets, management, potential risk factors, and how the money raised will be used.
  • Make sure there is a market for investments you’re offered. If a company isn’t listed on a stock exchange, the market for its shares could be limited.
  • Get a second opinion and do some research even if the “tip” was given to you by someone you know. Well-intentioned people can themselves be victims of fraud.
  • Be wary when strangers promise you returns that seem too good to be true

For more information, read the AMF brochure “Watch out for securities fraud.” It will help you recognize various types of illegal tactics, and provides tips to keep you on guard against scammers.

If you think you may be the victim of an illegal distribution, contact the AMF's Information Centre at 1-877-525-0337.

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

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Media only:
Frédéric Alberro (514) 940-2176

Information Centre: (877) 525-0337