Fraudsters use fake CIRO letterheads to demand fees; investors urged to verify claims and report scams
The Canadian Investment Regulatory Organization (CIRO) has issued a warning about a fraudulent scheme involving individuals associated with a company called TopFirstGroup.
Fraudsters are falsely claiming that CIRO and the Investment Industry Regulatory Organization of Canada (IIROC) require investors to pay border fees to release funds held at a financial institution under CIRO's name.
According to complaints received by CIRO, individuals linked to TopFirstGroup have used falsified IIROC and CIRO letterheads to mislead investors. They falsely represent that CIRO requires a deposit or border fee payment to release funds.
CIRO clarified that it does not require individuals to pay any fees or deposits to recover funds or losses.
TopFirstGroup, which is not registered to trade securities in Canada, and the individuals involved in this scheme are not regulated by CIRO or IIROC.
CIRO highlighted that these fraudulent activities have prompted alerts from other regulatory bodies, including the Canadian Securities Administrators (CSA), the Ontario Securities Commission, and the Financial and Consumer Affairs Authority.
Investors are encouraged to confirm the legitimacy of anyone claiming to represent CIRO by contacting CIRO's Complaints & Inquiries team.
The registration of all individuals authorized to provide financial advice in Canada can be verified through the National Registration Search of the CSA.
CIRO’s Office of the Investor provides resources to help Canadians avoid fraud and safeguard their finances. Investors can find detailed information under ‘Avoiding Fraud and Protecting Your Investments’ on CIRO's website.
If you believe you have been targeted by this scheme or a similar scam, CIRO advises contacting your bank, local police, your provincial securities commission, and the Canadian Anti-Fraud Centre immediately, in addition to reporting the incident to CIRO.
