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You ASC'd Blog

We’ve created this blog to present you with answers to some of the more common questions we receive from investors. We'll have different subject matter experts blogging about what they know best and we'll update it as new blog topics arise. We hope you'll find it interesting and helpful.


October 04
Get curious about investing and #ASKASC


Wondering how to properly research an investment opportunity? Or what the difference is between a TFSA and an RRSP? Chances are, if you have these questions about investing, someone else does too. Here’s another question, have you ever searched a Q&A page on a website and couldn’t find what you were looking for? On, we’re building our Q&A page using real questions from real Albertans with responses from our team of subject matter experts at the ASC.

To encourage all of your questions and help get us started, we’ve developed our #ASKASC campaign and contest, here’s how it works:

From October 3 to 31, post your investing questions to our wall on Facebook or Twitter tag us @ASCUpdates and include the hashtag #ASKASC.

Once your question has been submitted, our team of gurus will start working on the response and you will be automatically entered into a draw to win a smartwatch! We’ll also be sure to notify you once your question has been answered and where you can find it on It’s simple – just #ASKASC all of your investing questions and take this opportunity to increase your investor knowledge and help other Albertans do the same.

Before you post, make sure your question is eligible. We can only help with general questions about investing and we can’t provide investment advice. Below are some examples of eligible questions:

   1. If I invest in a fraudulent company, can I get my money back?

   2. What rights do I have as a shareholder?

   3. What is insider trading?

   4. Where can I find information about a company I want to invest in?

And here are a few examples of questions we can’t answer:

   1. Should I invest in XYZ Company?

   2. Can you tell me if and when XYZ Company is going to launch an IPO?

   3. Can you recommend any good financial advisers in my area?

Thank you for helping us help Albertans increase their investor education. We’re looking forward to answering your questions!

For full contest rules and regulations, click here.

Helpful links

#ASCASC Landing Page

September 14
Lights, camera, fraud! Shining a spotlight on famous investment scams


The 18th annual Calgary International Film Festival (CIFF) opens next week, and is the largest film festival in Alberta. CIFF showcases approximately 200 short films over 12 days hosted at locations throughout the city. In the spirit of CIFF, we’re shining the spotlight on some of the most famous investment frauds in history.

You may recognize the names – Ponzi and Bre-X - but are you familiar with the frauds that led to their fame?

Charles Ponzi, The Securities Exchange Company


Image Source:


If this character’s name sounds familiar, it’s because he operated one of the most notorious Ponzi schemes ever - in 1919. While he did not actually invent the concept of the Ponzi scheme, his scam was so large and successful that it drew national attention to that type of fraud, for the very first time.

Ponzis’ scheme, which was initially legitimate, involved international reply coupons. These were vouchers individuals could purchase to include with their overseas mail to cover the cost of the return postage required by the recipient to reply back. Ponzi would purchase these coupons in other countries where postage was cheaper and then sell them in the United States at a profit.

His “business” turned into an investment fraud when he expanded the scheme and began to recruit people to invest, claiming their investments would fund the purchase of more international reply coupons. Now operating under the name Securities Exchange Company, he would lure investors in with promised returns of 50 to 90 per cent in only 90 days. Inevitably attracted to such a lucrative offer, investors flocked, providing Ponzi with enough new business that he could pay existing investors with the new funds, while also pocketing millions of dollars for himself.

Ponzi’s scheme was discovered and exposed in 1920 when speculations about him and his business made front-page news in the Boston Post and he was subsequently investigated. Ponzi was charged with 86 counts of mail fraud; he pled guilty and spent 14 years in prison. In total, he defrauded investors of roughly $20 million.


John Felderhof, Bre-X Minerals Ltd.


Image Source:,16641,19970519,00.html


The recent film Gold (2017) starring Matthew McConaughey dramatized true events from the Bre-X Minerals Ltd. scam that took place in 1997.

Bre-X was a junior exploration company based in Calgary, Alberta. Originally a penny stock when it was first listed on the Alberta Stock Exchange in 1989, the company was eventually valued at $6 billion at its peak in 1996. Unfortunately, this valuation was based on a series of falsified samples that made it appear as if the Bre-X site in Busang, Indonesia held one of the biggest deposits of gold ever reported.

When David Walsh, the founder of Bre-X, wanted to revive the company in 1993 he contacted his colleague and well-known geologist John Felderhof. Felderhof recommended mining in Busang, an isolated piece of rainforest on the Island of Borneo, Indonesia. Convinced the site was a rich, untapped gold mine, he assembled a team of geologists to explore the property. One of them, Michael de Guzman, engaged in salting the initial core samples using gold from his wedding band. He continued to shave gold from different sources into the samples for over two years, while Walsh wildly promoted the Bre-X stock.

The fraud unravelled quickly when an independent consultant tested the samples and found the gold estimates were exaggerated. Around the same time in 1997, de Guzman fell to his death from a helicopter flying over the Indonesian jungle. The stock plunged, investors lost hundreds of millions of dollars and Felderhof (the only perpetrator still alive) was charged with eight counts of violating the Ontario Securities Act, including allegations of insider trading and misleading investors. After a lengthy trial, he was acquitted of all charges. Even after his death in 1998, there continues to be great uncertainty surrounding Walsh’s involvement and potential knowledge of the scam. To this day, no one has been convicted, fined or claimed responsibility for the fraud.

Helpful links

Bre-X: The real story and scandal that inspired the movie Gold

How Stuff Works – Charles Ponzi

You ASC’d – Ponzi Schemes

August 17
Don’t get scammed at a summer event


There are many events to attend in Alberta this season, ranging from football games to music festivals and horse-jumping and more. One thing they all have in common (aside from being fun to attend) is that they accept advertising and/or sponsorships from companies in order to finance their events.

Companies purchase advertising for many reasons, including attracting new customers and even new investors. We often talk about victims of investment fraud being approached by phone or online, but victims have been introduced to fraudulent investment opportunities at Alberta events in the past, through solicitation and advertising/sponsorship. It’s important not to give a potential investment more legitimacy than it deserves just because it is associated with an event you enjoy.

Things to remember to avoid getting scammed:

Don’t assume anything – The organizers of a music festival are focused on stage setup - they aren’t required to know securities laws. In an ideal world, the group hosting an event would investigate the business practices of companies before accepting sponsorship from them, but in reality, that’s generally not the case. Don’t assume that just because a legitimate event accepts advertising or sponsorship from a company that the company doing the advertising is legitimate. Even if they are, investing with them may or may not be the right choice for you.

A company that supports the same events you do does not necessarily share your values – It’s great to support and invest in businesses that participate in your community, but just because a company supports a sport or event you believe in does not mean that company exhibits good values. Also, don’t buy into the belief that all scams are big, cosmopolitan endeavours. Frauds can be small and local, so be aware that even events and individuals in small communities can pose a risk. In particular, affinity fraud is a type of scam that deliberately looks to infiltrate tight-knit communities or groups.

Meeting someone in person doesn’t ensure they’re trustworthy – Often, sponsors and advertisers will be in attendance at events. For instance, a company that sponsors a beer garden at an event may have representatives in the tent to talk to those in attendance. If you attend such an event and meet someone offering an investment, that’s not sufficient knowledge to decide to hand over your money. Be sure to do your own research on the person or company, starting with checking to see if they are actually registered to sell investments, and if they’ve had disciplinary action taken against them in the past.

Remember, it’s our job at the Alberta Securities Commission to regulate people and companies offering investments – so contact our Public Inquiries Office toll-free at 1-877-355-0585 or via email at with questions you may have about an investment you’re considering. In an interesting coincidence, we share our ‘ASC’ moniker with the Advertising Standards Council – you can direct advertising questions that are not investment-related there.

Helpful links

Check out a Potential Investment

June 30
Canada 150: A year of celebration, conversation and learning


This year, as Canada celebrates its 150th birthday, we are reminded of all that we have to be proud of and thankful for. Canada has long been a destination for people from many different countries and backgrounds to settle and establish new roots, while still maintaining a strong sense of self and cultural identity. Coast to coast, our diversity is a part of our Canadian values, and it is something we celebrate and are proud of.

Many new Canadians join organizations and groups to integrate themselves into the community and meet others who share their culture. Unfortunately, dishonest people exist worldwide (Canada is no exception), and fraudsters target people based on perceived vulnerabilities. New citizens may experience a language barrier, or be less informed about regulations and how investments work in Canada. Sadly, scam artists are adept at lying and swindling people out of their hard-earned money and use all of these opportunities to exploit people. Specifically, affinity fraud is a common type of scam in groups like these.

Affinity fraud is when a scam artist infiltrates an organization or group and pitches a fake investment opportunity to its members. Those first members who believe the opportunity to be legitimate become unwitting participants, because they spread the word to other members of the group. This second wave of people then buy in to the opportunity, believing it to be trustworthy because the information is coming from their friend, neighbour or someone in their congregation. This can create a snowball effect, allowing the scam to spread throughout a large group very quickly.

Although these risks exist, they can be mitigated when people are aware of them, watch for red flags, and ask the right questions. Even if an investment opportunity arises through a friend or someone you trust, it’s imperative that you ask questions, do your homework and verify the information you are being given. The first step is to check and see if the advisor or company is registered, which anyone who sells an investment that is a security must be, according to Alberta laws (with few exceptions). You can do this via After that, continue your research – request and review all documentation related to the investment, and consult with an objective, unrelated third party with business knowledge, such as a lawyer or accountant.

Helpful links

Canadian Securities Administrators

Affinity Fraud Checklist

June 26
June recap - protecting seniors from financial abuse

When it comes to protecting seniors, collaboration is key. In June, ASC employees presented to legal and law enforcement groups who work with seniors to make them aware of what we do, the resources we offer and the ways we can work with them to combat elder financial abuse.



Our CheckFirst booth popped up at Calaway Park’s Grandparents Weekend, where we talked investor education with 800 grandparents, and treated the kids to games and cotton candy.

We also updated our consumer website with a new section dedicated to seniors, This page contains educational tools and resources for seniors and Albertans with seniors in their lives. After you read our educational materials, be sure to take our How safe is your nest egg? quiz before Friday, June 30 to find out if you are on the right track to protecting your financial future. Once you complete the quiz, be sure to enter our contest to win one of five great prizes!

Helpful links

Checkfirst seniors

Calaway Park

Alberta Government - Elder Abuse Awareness Day

​[1], Facts on Elder Abuse:​
June 07
Alberta seniors – tips to protect your nest egg

Seniors are living longer, healthier lives (“70 is the new 60!”) and they have spent a lifetime accumulating investments and assets. Despite this, the natural aging process has the potential to affect a person’s ability to remember and make important decisions, including those related to their finances. Scam artists see this as a great opportunity, to prey on the perceived vulnerability of seniors.

The ASC wants to prevent that from happening, by h​elping seniors learn ways to avoid becoming a victim of fraud and financial abuse. Below are some tips on how to protect those you care about, or your own retirement savings.

Don’t judge a book by its cover – Successful scam artists look and sound professional, including their professional wardrobe, offices, and websites. They are experts at making the flimsiest deal sound safe. Remember that appearances can be deceiving and have no bearing on the soundness of an investment opportunity.

Don’t be a victim of your manners – Many people born in the 1930s, 40s and 50s were raised to be polite and trusting. Scam artists will try to exploit your good manners by pressuring you to invest in a “too good to be true” opportunity. Don’t forget – it’s your money and it’s not impolite to start by saying NO to something you are unsure about.

Check out strangers touting strange deals – Trusting a stranger with your money is a mistake that can be made by anyone at any age. Even if you’re one of those people who remembers a time when a handshake and a good word used to mean something, don’t just rely on a handshake when it comes to your finances. Be sure to do your own research on the person or company offering you the investment. An important free and easy first step is to check registration.

Don’t let embarrassment or fear keep you from speaking up – Scam artists know that seniors may not report an incidence of investment fraud because of embarrassment or fear of losing financial independence. Making a report to your local police or the ASC is the best thing you can do to protect others from becoming victims.

Monitor your investments and ask questions – Be sure to read financial statements when you receive them; don’t let unopened mail or e-mails concerning your account activity pile up. Watch out for signs of unauthorized trading and if you are unsure about any account activity, be sure to ask questions.

Looking for more information? Check out our seniors resources at And be sure to take our quiz (open until June 30) for a chance to win great prizes.

Helpful links

Alberta Government

Alberta Elder Abuse Awareness Network

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May 02
“Mindful” investing – How are we impacted by investment fraud?

Even in this age of technology with the invention of robo-advisors and algorithmic trading software, one thing all investors have in common is that we’re human, with human emotions, reactions and instincts. Based on our personalities and perceptions, we all have different levels of risk tolerance and capacities for trust, and we deal with loss and disappointment in various ways. In light of CMHA Mental Health Week, we’re looking at how victims are affected by investment fraud, some common social and psychological implications and sadly, one extreme case.

The sense of loss associated with being a victim of investment fraud lingers far beyond the initial financial devastation. A 2007 study conducted by the Canadian Securities Administrators (CSA) found that the most impactful loss a victim experiences is their loss of trust. Because investment fraud typically “depends on trust while also destroying trust,” the CSA noted that the victim’s trust in other people, investments and the financial markets becomes significantly diminished.1

The CSA also found that victims of fraud, especially those who have lost $10,000 or more, experience increased levels of stress, anger, depression and feelings of extreme loss and isolation. Also common amongst those who faced major losses from investment fraud were panic or anxiety attacks, increased vulnerability to physical illness and extreme weight fluctuations.

The results of the Investor Fraud Study completed by the Financial Industry Regulatory Authority (FINRA) in 2006 reinforced prior research findings that fraudsters customize their pitches and tactics to appeal to their target’s psychological profile and vulnerabilities. For example, a fraudster’s offer to a recently divorced, single mom may draw on her fears of becoming the sole provider and possibly not having enough savings for her children’s education or her own retirement. In contrast, the pitch to a highly successful, male, banking professional who is knowledgeable about investing may appeal to his fixation on wealth and power.2

The key takeaway from this portion of FINRA’s report is the importance of investors taking steps to protect themselves by understanding exactly how their psychological state or life circumstances can be exploited and used against them by fraudsters. It is clear that anyone can become a victim of investment fraud. As schemes and pitches become more innovative and as fraudsters continue to adjust their pitches to prey on investor’s vulnerabilities, we need to be increasingly conscious of our own susceptibilities and of the common red flags of fraud.

Part of being an informed investor is understanding your investing personality profile. Asking yourself questions such as: How much risk can I tolerate? How much do I expect to make on my investments? How long do I plan to invest for? And will I ever need quick access to the funds in my investments? will help paint a picture of what type of investor you are and assist you in strategically planning for your financial goals.

Unfortunately, in some situations, when a fraud does occur, the financial devastation and stress is too much to bear. This is what occurred in the case of Fred Turbide, an Edmonton man who took his own life in December 2016 after learning that the binary options trading company he invested with (23Traders) was a fraud and lost almost $330,000. Before he ended his life, Mr. Turbide begged the broker he was working with to contact him, writing that he had been financially destroyed and fearing that he had lost his house and retirement savings – he did not receive any response. Mr. Turbide’s family contacted the ASC after their tragic loss in an effort to raise awareness about the fraud and prevent it from happening to anyone else. 23Traders has since been shut down, however other binary options scams still exist, learn how to recognize and avoid them here.

As part of a Fraud Prevention Month initiative, the ASC filmed an interview with the Turbide family that captured their experience with investment fraud and its devastating effects. Click here to watch.

While this is an extreme example, investment fraud can significantly impact an individual’s well-being. It’s important to know something can be done to pursue fraudsters. If you suspect that you, or someone you know, has been a victim of investment fraud, please contact the ASC’s Public Inquiries Office toll-free at (877) 355-4488.

Helpful Links

CMHA Mental Health Week

1 2007 CSA Investor Study

2 FINRA Investor Fraud Study Final Report

March 30
Cons, coffees and checking registration – A look back on Fraud Prevention Month 2017

​The ASC just wrapped-up another jam-packed Fraud Prevention Month. The CheckFirst Café set up shop at the Calgary and Edmonton Home & Garden Shows where we served coffee and investor education tips to show-goers. Over the course of both shows, we connected with approximately 8,000 Albertans at the CheckFirst booth, serving them coffee and investor education. We reminded Albertans to research and check registration before investing and to educate themselves on the red flags of investment fraud.

You may have also seen our Public Service Announcement on CTV during February and March. Our objective is to remind Albertans that the ASC is here to help, as a resource to help Albertans learn ways to recognize and avoid investment fraud. If you haven’t seen them yet, check out our PSAs here.

In our boldest campaign yet, we demonstrated to Albertans how simple it is to become a victim of investment fraud. We put ourselves into the shoes of the scam artist and staged a phony investment seminar during Fraud Prevention Month. To create the ‘perfect scam’ we covered all of our bases - we invented a fake company called “Maplestock Investments,” hired an actor to play the role of the stock promoter and even developed a detailed, fake online profile for the company and promoter.

Attendees heard about the scam through online advertising, which contained commonly used red flags of fraud.  The event advertisements were viewed by Albertans nearly six million times and more than 8,500 potential investors clicked on the promotional materials. Forty-eight people registered for the event and 22 people attended, all genuinely searching for a new investment opportunity.

Helpful Links

2016 Home & Garden Show Recap

March 16
Briefing you on Bitcoin

What is bitcoin?

Bitcoin is one form of virtual currency or crypto-currency, a type of money that is created, held and traded electronically. Unlike most traditional currencies, bitcoin is not printed – it is powered by a technology known as blockchain. Blockchain is a public database that performs the job of validating and transmitting each bitcoin transaction. The process is chronological and historical and once completed, every bitcoin transaction is permanently stored in blockchain (barring technical security issues as outlined below).

Bitcoin was introduced in 2008 as an alternative to the conventional currency medium of exchange. It can be bought and sold and some sellers allow it to be used to purchase goods electronically. Bitcoin took off as a currency on the black market (Silk Road) and has since gained interest and notoriety due to media and major retailers accepting it as a form of payment (e.g., dating site OkCupid accepts bitcoin as currency, as does Its continuing adoption within the commercial sphere has resulted in legitimate and wider tradability with other forms of currency making it harder to ignore than when it was previously used for illicit transactions.

What are the risks?

There are various ways to invest in bitcoin, including purchasing it with the expectation that its value will increase (similar to buying U.S. dollars), trading based on bitcoin’s price volatility or investing in bitcoin-related companies. As with any investment, investors should conduct their own research and familiarize themselves with the major risks associated with bitcoin before investing.

Opportunity for fraud

New inventions or innovative technologies are often used by fraudsters as scam bait. They may tempt investors by marketing a bitcoin investment opportunity as a way to get into a unique, cutting-edge space, promising or guaranteeing high investment returns. Fraudsters may solicit investors through forums and online sites frequented by members of the bitcoin community.


Unlike traditional tender, such as the Canadian dollar or Swiss Franc, bitcoin is not issued, backed or administered by a central bank or government agency and there is no obligation on any party to accept it as a form of payment. Because bitcoin lacks any central governing authority, its minimum valuation can never be verified and its value is solely determined by market volatility. The likelihood of dramatic fluctuations in the value of bitcoin create a greater risk for those buying it or using it to make or receive payments.

Security and technical issues

Bitcoins are stored as electronic files within individual computers and are not protected from hackers, online theft or data corruption.

Tax implications

The CRA ruled that like any commodity, gains or losses resulting from using or trading bitcoin are subject to taxation. Capital gains or profit earned through investing in bitcoin are converted to Canadian dollars to determine taxes owed. The fluctuation and volatility of bitcoin’s valuation may have a significant impact on the taxes you owe.

Bitcoin regulation

Numerous regulatory authorities such as the U.S. Securities and Exchange Commission, FINRA and NASAA have issued investor alerts warning of the increasing risk for fraud, including red flags to watch for and what to be wary of when doing your research. Various government agencies are analysing how to regulate bitcoin and investors should keep on top of legislative developments in this fast-evolving area.

Helpful Links

SEC Investor Alert on Virtual Currencies

What you should know about digital currency (CRA)

SEC Investor Alert on Virtual Currencies

February 28
CheckFirst, then coffee

Helping Albertans stay awake and alert (about investment fraud), the ASC’s CheckFirst Café is back for the third consecutive year at the Calgary and Edmonton Home & Garden Shows this March. Stop in during your day of booth-hopping to have a coffee on us and learn the importance of doing research before making an investment.

If you’re attending one of these shows, you’re likely planning a remodel or choosing paint colours. An investment fraud can wind up costing you an entire house, never mind a new kitchen, so don’t spend more time researching your renovation than you do researching a potential investment. A little education goes a long way when it comes to investment fraud, and the ASC is here to help.

We’ll add sugar to your coffee, but we won’t sugar coat investment fraud! Visit us at the:

Calgary Home & Garden Show: Thursday March 2, 2017 to Sunday March 5, 2017 at the BMO Centre & Corral, Stampede Park.

Edmonton Home & Garden Show: Thursday March 23, 2017 to Sunday March 26, 2017 at the Edmonton Expo Centre.


Helpful Links


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