Feb. 25, 2009
SAINT JOHN (CNB) - An investigation following several complaints from a New Brunswick resident has resulted in a New Brunswick Securities Commission (NBSC) hearing panel ordering that Strategic Energy Partners and Jim Palmer - who may also be known as James Palmer - be banned from trading securities in New Brunswick.
A New Brunswick resident had been solicited by telephone to invest in securities of Clean Coal Technologies Inc. (CCTI). The salespeople said that they were employees or agents of Strategic Energy Partners, a company operating out of Geneva, Switzerland. The company appears to be in the business of reselling securities of other companies. CCTI, a company operating in Florida, states that it has no affiliation with Strategic Energy Partners, and has issued a warning about the company on its website.
The complaints alleged that telephone sales representatives for Strategic Energy Partners were aggressive and used profane language. On one occasion, the representative hung up on the potential investor. On another occasion, Palmer, a Strategic Energy Partners salesperson who made cold calls to a New Brunswick resident, refused to provide written information about the security being offered, and instead referred the New Brunswick resident to the Strategic Energy Partners website. The investigation revealed that this website provided little information, and appeared to a large extent to be copied from the website of another company.
"Investors must be extremely cautious of investment opportunities solicited by phone," said Rick Hancox, executive director of the NBSC. "In this case, the investor was skeptical and did the right thing by calling us to report suspicions."
Neither Strategic Energy Partners nor Palmer is registered to trade in securities in New Brunswick. The soliciting of New Brunswick residents without being registered, or without a valid exemption, is a violation of the Securities Act. Strategic Energy Partners and Palmer were both provided notice of the hearing held today, but neither appeared before the NBSC panel.
If you or someone you know has been contacted by a person acting on behalf of the people or entities listed above, call the NBSC at 1-866-933-2222.
Investors should also watch out for these common red flags indicating fraud:
The New Brunswick Securities Commission is the Crown corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices, and foster fair and efficient capital markets, as well as confidence in those markets.
MEDIA CONTACT: Michelle Robichaud, communications officer, New Brunswick Securities Commission, 506-643-7045 or 1-866-933-2222, e-mail: Michelle.Robichaud@nbsc-cvmnb.ca.