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Bogus Bond Program

Ontario securities Commission - April, 2000

OSC Warns of Bogus Bond Program

Bogus Ontario Heritage Bond Program

We have recently come across a flyer promoting the Ontario Heritage Bond Program as a means for investors to earn a 10 percent return on their investment. The flyer, which appears on letterhead similar to that used in some government agencies, claims that the bonds are sponsored and guaranteed by the Government of Ontario.

The Government of Ontario has not issued, sponsored or guaranteed any bonds in the name Ontario Heritage Bond Program.

You should exercise extreme caution if you are solicited to purchase bonds with the following characteristics:

  • Calling themselves Ontario Heritage Bonds.
  • Sponsored and guaranteed by the Government of Ontario.
  • Proceeds to be used to fund the preservation of historic structures in Ontario.
  • Paying 10 percent per year paid semi-annually.
  • Subscriptions are tax free if held to maturity.
  • Minimum investment $5,000.00, maximum $40,000.00.

Government bonds such as Canada or Ontario Savings Bonds are an excellent and secure way to engage in minimal risk investing. Knowing this, unscrupulous individuals can attempt to claim some level of government association as a means to lure potential investors into a false sense of security.

Any time you are offered a tax free investment, such as outlined above, you should consult with your professional financial advisor or accountant. Failure to do so could be contrary to your best interests and lead to the risk of a tax liability at a later date.

If you have been approached to invest in this or a similar investment scheme please contact your provincial securities regulator. Ontario residents can e-mail [OSC] directly.

Reprinted from the OSC website