NBSC issues investor alert

The New Brunswick Securities Commission is warning investors across Canada, but particularly New Brunswickers, about an investment scheme that appears to be the work of a serial scam artist.

The NBSC issued an investor alert and a temporary cease-trade order against First Global Ventures S.A. and Al Grossman on Thursday after the respondents were found to be soliciting the sale of securities without being registered or having filed a prospectus. Grossman is also in violation of two previous cease-trade orders: Maitland Capital Ltd. and Limelight Entertainment Inc./Limelight Capital Management Ltd.

“This latest scheme seems to have come into play less than two weeks ago, and was uncovered as part of our ongoing investigation into the activities of Mr. Grossman and his associates,” said Rick Hancox, executive director of the NBSC.

In early May the commission began investigating after an investor complained that First Global Ventures S.A., a Panamanian-registered company, said it would credit Maitland investors the $2.50 they paid for the shares towards a purchase of First Global Ventures shares at $3.50 US, with the investor paying the difference.

Through the course of the investigation, the NBSC found that Grossman had retained an Ontario web-development company to create a website for First Global Ventures, using content which appeared to be largely copied from the website of a legitimate equity-management firm

This temporary cease-trade order is an interim measure taken by the commission in the public interest, pending completion of the investigation. A hearing will be held on May 24, to determine what further sanctions are warranted.

Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

(05/12/06)