People in the Canadian province of Manitoba have been warned not to invest in two separate investment scams, one of which involves letters of credit (L/Cs) promising abnormally high returns.

A 19 December 2003 investor alert issued the Manitoba Securities Commission (MSC) says would-be investors should not invest in the schemes operated by Skyward Management Inc, Commonwealth Marketing Group Ltd and William Serediuk, and Robert J Smith of Airdrie, Alberta.

High returns

The first scam involves L/Cs or mid term notes whereby individuals are being offered 12 per cent per month return on their money according to the MSC.

It says that proceeds from transactions under this scam are being transferred to an account in Belize.

Retirement savings

The second investment scam requires individuals to move accounts reserved for retirement savings to a trust company in British Columbia according to the MSC. It says that the investments in such accounts, known as Registered Retirement Savings Plans (RRSPs), are replaced with possibly worthless second mortgage properties.

Individuals are apparently told that a 12 per cent annual return will be realised on mortgage property investments. The commission says that in reality, the fraudsters take cash from individuals who, in return, hold no more than a potentially worthless investment.

Alberta link

The commission says it has learned that Skyward Management is affiliated with HMS Financial, which operates out of Linden, Alberta. The Saskatchewan Securities Commission has issued a Cease Trade Order against HMS Financial.

Serediuk and Smith have stated that Skyward Management Inc has raised millions of US dollars since March 2003 from clients in the US and Canada according to the MSC.

Warning

The commission is warning the public that none of the above named entities are permitted to collect money from the public in this way. "If you have invested your money with them, your money may be at risk," warns the investors alert.

Anyone who has been solicited by or given money to Serediuk or Smith is asked by MSC to contact the commission's investigator, Jason Roy, by telephoning (204) 945 2548.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.