 |
|
|
 Business News | November 2007 
Cease Trade Order Issued
 Sharon Vanhouwe - 600 Action News
go to original
A cease trade order has been issued against a Warman based company.
The Saskatchewan Financial Securities Commission has issued the order against Landbankers International and Kelly Friesen.
According to the Commission the company, on the web site, suggests it is a "highly profitable, fast growing land banking company" which operates out of Puerto Vallarta, Mexico.
The Securities Division Enforcement Branch says about one hundred and 50 people have invested in the company which has contravened Saskatchewan's securities laws.
Landbankers International is not registered and investors did not receive a prospectus.
Cease Trade Order Issued Against Land Company
Cassandra Kyle - The StarPhoenix (Saskatoon)
go to original
The provincial government has issued a cease-trade order against a company that has attracted investments from more than 150 Saskatchewan residents.
Landbankers International MX, S.A. de C.V. and Kelly Friesen of Warman were issued the temporary order by the Saskatchewan Financial Services Commission (SFSC) Monday, meaning the company cannot do business or use Saskatchewan Securities Act exemptions until the order expires on Dec. 11. Friesen and the company did not register for business in Saskatchewan, the commission alleges.
Ed Rodonets of the SFSC said an investigation into the company started after the commission received several phone calls from people in the Saskatoon area who became concerned after being contacted by Friesen. Before the order, Friesen had been contacting Saskatchewan residents on behalf of Landbankers International to sell shares in the company, which bills itself as a "highly profitable, fast growing land banking company operating out of Puerto Vallarta, Mexico," on its website.
Friesen was saying the company's shares would be listed on the Mexican stock exchange, according to an SFSC news release.
If a company is not registered in the province, Rodonets said, investors are not protected under Saskatchewan securities laws.
Reached on a cellphone with an Alberta area code, Friesen identified himself as an investor in the company and a representative of Landbankers International when he is in Mexico. He said the company would be responsible for registering itself in Saskatchewan.
When asked about the cease trade order against himself, Friesen responded, "Everything they (Landbankers International) are doing is legal in Mexico, there's no question about that."
A call to Landbankers International's Mexico office using a number provided by Friesen, was not returned.
The company's website states it is a privately held company with more than 1,200 investors and has plans to go public soon, but an exact date was not given. The frequently asked questions section of the site states that money invested in the company is used to buy land and for research into land development.
Money invested into the company cannot be taken out as it has been used to buy land, according to website information, and investors can only get their money out of the company when Landbankers International goes public on the Mexican stock exchange.
Rodonets said investors need to do their due diligence when deciding to invest in a company. A call to the commission will clear up whether a company is registered in Saskatchewan, he said, adding researching the company and getting a second opinion is recommended before making any financial commitments.
"Talk to a trusted adviser," Rodonets said. "Talk to someone you know, and throw it by a second person just for a second opinion."
In addition to the Saskatchewan investors, Rodonets added, people from other parts of the country have also bought shares in Landbankers International.
The cease-trade order could be extended in December if the commission deems it necessary, Rodonets said.
He is requesting that Saskatchewan residents who invested in Landbankers International contact him at the financial services commission at 306-787-5850.
ckyle@sp.canwest.com |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us