Don’t lose your green on the green 

Don’t lose your green on the green 

If you’ve been invited to invest in the latest “green” technology, be aware that some opportunities may not be what they seem.

Like any industry, there are companies that play by the rules and others that don’t.  Some companies take advantage of your green generosity by inviting you to play an active role in helping to save our environment – and who wouldn’t want to do that?

You may be introduced to a green investment opportunity through a tradeshow or seminar, or simply through a phone call. 

While the ASC is not here to comment on the viability of new technology, we can let you know if the company or individual selling you an investment is doing so in agreement with Alberta securities laws.

Here are some warning signs that could indicate a “green” investment scam:

• Cliché lines: You may be told that this technology has a “massive following”, that it is the “wave of the future” and that you can “be part of this revolution that will save the world”.
• Detailed drawings and technical jargon: Some companies post detailed drawings, pictures and descriptions of the technology you’ll be investing in on their website.  In some cases, this information is intended to confuse and intimidate you in hopes that you won’t ask any further questions about the investment.  If you are unsure about what you’re investing in, be sure to ask more questions.
• Offshore contact information: If you are asked to send your money to an offshore account, beware.   You may have a difficult time getting it back if the investment goes sour. 
• Big promises:  If you are told that the company will soon be “going public”, that they will be “trading on the exchange” or that the investment is “no risk” or “guaranteed”, this could be what is called “prohibited representation” and is a big red flag.
• High percentage of commission: Ask the company for a copy of documents outlining details on the investment, such as an Offering Memorandum, before you hand over your money.  These documents should include information on what the individuals selling the investment are taking for their commission.  You might be surprised at what you read.

To protect yourself and your family from falling for a green investment scheme, follow these tips:

• Do some research on the proposed technology to see if it really exists.  For example, you can do a patent search and check Trademark registries.
• Conduct a background check with the ASC or your local securities regulator on the individual and company selling the investment and find out if they are required to be registered.
• Ask yourself:  If the technology is so great, why does the company have to randomly call people to get them to invest?

In the end, if you are unsure about whether the investment checks out, check first.  Find out more about the company or individuals offering the investment by contacting the ASC via email: inquiries@asc.ca or toll free phone: 1-877-355-4488.