New Zealand Securities Commission - The Bulletin: April 2007

Telephone investment scams

Chase Capital Inc from the United States of America and Tradex Corporation from China are the most recent companies to call New Zealanders with bogus share deals.

John Mulry

It is extremely unwise to send money overseas to someone you know only by a telephone call. Money sent out of the country to these fraudsters will inevitably be lost.

Hanging up on these callers is the best advice. Talking to them gives them more opportunity to persuade you to send money.

Fraudsters who have telephoned New Zealanders are named on the Commission’s website. www.seccom.govt.nz

Telephone fraudsters are now offering people commodity and futures options traded on an options exchange. "This is yet another innovative way of the cold callers to con people with fake investment deals," says Commission Director of Market Supervision, John Mulry.

Metro Financials, from the United States, has been calling Australians with offers of commodities and currency traded on the fictitious American Futures and Options Exchange. They also claim to be regulated by a non-existing American Futures and Options Trading Commission in the US and encourage people to visit the website of these organisations.

The Australian Securities and Investments Commission is investigating the matter with the Commercial Affairs Department of the Singapore Police Force and the US Commodity Futures Trading Commission.

"Futures dealers have to be authorised by the Commission to deal in futures contracts in New Zealand. Investors must make sure that the dealer is authorised before considering the investment," John Mulry said.

We've lost the hyphen!

www.seccom.govt.nz will become
www.seccom.govt.nz next month.
Our e-mail address will also change to
seccom@seccom.govt.nz.
However, our old e-mail address and URL
will still work if you wish to use them.

Protect yourself from fraud

The Ministry of Consumer Affairs and the Commerce Commission launched "Fraud Awareness Month" during March. This campaign aims to raise awareness about scams.

Fraudsters constantly change tactics to make people believe they are genuine and to encourage them to part with their money.

To avoid losing money on scams:

never send money or your bank account details to someone you don’t know or trust;
never respond to an e-mail asking for your PIN and passwords. If you are asked for account details or a PIN, suspect a scam;
if offered an investment opportunity, ask for the scheme’s investment statement. Almost all investments offered in New Zealand, from within New Zealand or overseas, must have a published investment statement with important information about the investment.

Visit Ministry of Consumer Affairs' website www.scamwatch.org.nz to find out more about types of scams.

Securities Commission wins best small workplace

The Securities Commission has topped the small workplaces category in the Unlimited/JRA Best Places to Work in New Zealand Survey 2006.

"This result is fantastic. It is a tribute to the positive, vibrant and dynamic organisational culture of the Commission," Chairman Jane Diplock said.

"It is a great accolade for the Commission’s staff."

"They are a creative, energetic and fun team who are also highly regarded and dedicated professionals in their fields. They work together in an enthusiastic work environment while delivering high quality regulatory outcomes for New Zealand’s capital markets," Jane Diplock said.

"The Commission is extremely proud of its staff." The Securities Commission was also a top10 finalist in the previous two years - 2004 and 2005 – of Unlimited/JRA Best Places to Work in New Zealand Survey.