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 Business News | January 2008 
Second Cease-Trade Order Issued for Shares
 Cassandra Kyle - The StarPhoenix
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A cease-trade order has been placed against a second Saskatchewan resident involved in a Mexican land-banking operation that has attracted several hundred local investments and is currently under investigation.
Sonja A. McAdam of Choiceland has continued to sell shares of Landbankers International MX S.A. de C.V. after a cease-trade order was placed upon the company and Kelly Friesen of Warman in November, the Saskatchewan Financial Services Commission (SFSC) alleges. Operating out of Puerto Vallarta, Mexico, Landbankers International bills itself as a "highly profitable, fast growing land banking company" on its website. The company promised investors its shares will be listed on the Mexican stock exchange, the Bolsa, according to a commission news release.
The ongoing investigation into Landbankers International revealed the company solicited shares in up to seven Canadian provinces, said Ed Rodonets of the SFSC enforcement branch. Once estimated to number about 150, new information shows several hundred Saskatchewan residents are among the 1,400 people who have invested in the company, he said.
The Alberta Securities Commission (ASC) also placed a cease-trade order against Friesen, Landbankers International and its subsidiary BonZac Asociados S.A de C.V. In a December ASC notice of hearing addressed to the companies and Friesen, the commission alleges Friesen and Landbankers International presented an investment seminar to about 40 people in Red Deer, Alta., one month earlier. The notice goes on to say that after soliciting investments, Friesen instructed the attendees to make cheques out to the company and send them to his address in Warman.
Similar seminars were held by Landbankers International in Saskatchewan, Rodonets said, adding it's important to consult with a trusted advisor or the SFSC before making investment commitments.
According to information on Landbankers International's website, most of the money invested in the company is used to buy land and research the types of investment that will enhance the value of the area. Money cannot be taken out of the company and is not invested in an interest-bearing account, it says.
Phone calls to Friesen's residence and Landbankers International's office in Mexico were not returned Wednesday.
Concerns about the company first came to light in the fall of 2007 after people contacted by Friesen on behalf of Landbankers International complained to the SFSC. Investigators soon discovered neither the company nor Friesen had registered to do business in Saskatchewan. McAdam's involvement with the company became known after a commission plea for information from investors brought in more information about the company.
Investors are concerned about their money, said Rodonets, but there is no word on whether charges will be laid against Landbankers International, Friesen or McAdam as the investigation is still underway. If a company is not registered in the province, investors are not protected under Saskatchewan securities laws.
"I'm not saying this is a scam, and our hope is that there are no losses, but we've got to carry on and investigate and determine what is going on with this investment," he said.
The original cease-trade order against Friesen and the company was extended indefinitely by the commission in early December. The order against McAdam expires Feb. 6 and could be extended.
To assist with the investigation, the SFSC is requesting anyone who has been contacted by McAdam or other representatives of Landbankers International to call Rodonets at (306) 787-5850. |
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