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Exempt Securities Scam / Accredited Investor Scam

Exempt securities on their own are not scams. They’re usually sold to wealthy investors who can afford the higher risks of these investments. Exempt securities are risky, and you could lose all your investment.

How it works

The scam usually starts with an unsolicited pitch to invest in a promising business that is about to go public. You may be told that the investment is available only to very wealthy people, but an exception will be made for you—all you have to do is sign some paperwork. This paperwork usually involves lying about how much money you make.

How to protect yourself

  • If you have to lie about how much money you have before you invest, walk away.
  • Check that the individual and firm selling the investment are registered in New Brunswick. Use the National Registration Search Tool.
  • Get as much written information as possible about the investment. It should include detail about the risks and costs of the investment, and what you have to do to get your money out.
  • If you’re unsure, get a financial professional such as an accountant, lawyer or a financial advisor, to evaluate the investment.  

How to report it

Click here to find out more about Exempt Securities. If you suspect you’re a victim of an Exempt Securities scam, or attempted Exempt Securities scam, complete the FCNB Submit a Complaint form.

FCNB administers and enforces legislation in the mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, and a wide range of other consumer legislation. If your complaint relates to an area outside of FCNB’s regulated areas, we may refer you to the appropriate reporting agency or organization.