Dominion Investments Club – a Canadian Forez Ponzi scheme

The Ontario Securities Commission has fined two individuals $250,000 each, for operating an investment program through which they illegally distributed

The Ontario Securities Commission has fined two individuals $250,000 each, for operating an investment program through which they illegally distributed securities.

On Monday, the OSC announced that it has approved a settlement agreement involving Ontario residents Albert James and Ezra Douse, neither of whom has ever been registered by the commission.

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James and Douse were involved in the launch of a foreign exchange investment program in 2008, called Dominion Investments Club Inc. The club was structured so that individual investors signed forex investment contracts and pooled their funds with the funds of others, on the understanding that the pooled funds were to be invested by third party brokers in foreign exchange transactions. The investors were to share in the resulting investment gains or losses from that activity.

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The participation agreement indicated that investors would receive a monthly payout of 12.5% of their contribution in profits. In reality, the investors received cheques representing between 5% and 10% as a monthly return on their invested capital, according to the OSC.

The monthly returns did not derive from foreign currency trading profits as the company led investors to believe, but rather were funded by new money coming into the forex investment scheme from later Dominion investors.

Read the rest here.

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