The intentional deception of investors

The intentional deception of investors
Posted on August 11, 2016 | larry elford | Written on August 10, 2016
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Author's Note:

Author's Note:

 

Many would say that fraud is the intentional deception of the consumer.

 

I submit this true scenario involving millions of investors and am willing to let readers judge for themselves.

 

The deception begins when hiring nearly any investment salesperson, and the jobs are advertised as 100% commission-paid job positions. (see RBC job posting linked below)  

https://www.linkedin.com/comm/jobs2/view/139349488?refId=d6274911-256e-4...

Then once they are hired, the employees are "packaged and sold" as something else to a vulnerable and trusting public. Despite provincial laws designed to prevent such license prevarication.

 

"As one commentator to a SEC staff’s study noted, “If the product sold is that of advice, then that advice should be in the best interest of the client. Anything else is fraud, because the seller is delivering a service different from what the consumer thinks he or she is buying.”  (link to Financial Post Article by Securities lawyer Ed Waitzer below)

 

When licensing these same commission salespersons, they are licensed as "dealing representatives" (as opposed to the true professional license category of "adviser" in both Canada and in the U.S.) Dealing representative ("broker" in the U.S.) is the license category for commission salespersons. (video below shows how to confirm license and registration in a minute or two)  BrokerCheck.com is how to check in the U.S.

 

 

The icing on the deception cake however, is to then ALTER the spelling of "Adviser" by ONE VOWEL, (from a licensed "adviser" to an "advisOR" (a non-licensed term).  This puts them outside of the reach of most law enforcement actors...and confuses everyone else.

 

The profits from being able to pull off this deception are calculated to be as high as one billion dollars per week, in Canada.  That equates to financial harm of one Fort MacMurray- sized fire every month or so in Canada. (Ft Mac was $3.5 billion in damages, 2016)

 

The public is deceived into belief that they are getting a professional "adviser", and then delivered something entirely different than what they were led to expect.   Again, many call this fraud.

 

Delivery of a commission salesperson with a legal ability to act "counter" to the investor's interests  (for more info search "suitability v fiduciary duty"), instead of the professional "adviser" that is contained in the law (Securities Act) of your Province.

 

"Trust us, we are advise-ieio-rs....?"

Where is the truth, the honesty, the fairness promised by the industry? (Probably not where they employ the non-advisor-licensed  folks that they deceptively call "advisors":)

Author's Video Note:

"As one commentator to the SEC staff’s study noted, “If the product sold is that of advice, then that advice should be in the best interest of the client. Anything else is fraud, because the seller is delivering a service different from what the consumer thinks he or she is buying.” 

(Edward Waitzer article, Financial Post · Tuesday, Feb. 15, 2011) (Mr. Waitzer is a Bay Street Lawyer, York University professor, and former Ontario Securities Commission chair, and this quote ( by another person) appeared in his article. 
http://business.financialpost.com/fp-co ... -investors

 

Short and sweet, smmed up in as few words as possible.  

 

 

Please click on the image to the left for an expaned view of this August, 2016 jop posting.

 

 

 

 

The John Oliver video below is possibly one of the funniest, clearest explanations of how the fake "advisor" game is played all over North America.  Enjoy, and please protect your family finances from professional deception.

 

Thanks.

About The Author

 

Investment Misconduct and Malpractice Analyst

Larry Elford is acclaimed as one of Canada’s top qualified experts on the subject of White Collar Crime as it relates to the investment... More

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