Thade was telling Judoca about an opportunity to invest that his friend had told him about.
He had been told that the minimum investment was only $10,000. He would make 20% back in the first two years! Thade was excited because his retirement savings were a little behind. Thade’s friend had told him that an answer was needed within 48 hours for Thade to get in on the deal.
Judoca, a Certified Fraud Examiner, cautioned Thade that the opportunity sounded fishy because of all the red flags. 20% in two years is a higher rate of return than usual, and the timeline to decide was short. The fact that a friend offered the opportunity didn’t mean it wasn’t fraud.
Judoca recommended that Thade should do some due diligence before investing. In fact, the extra time that the due diligence would take may give him some additional information with which to make the decision. If the company traded on a stock exchange, Thade should be able to see the financial statements from the company and key shareholders on Sedar+. Judoca advised Thade to check the Alberta Securities Commission’s Investment Caution list just to be safe.
Thade said he didn’t think his friend would give him bad investing advice, but he appreciated Judoca identifying the red flags. He would think about what Judoca had told him and let her know what he decided.
Should Thade invest? Did he? Stay tuned……..
Kathleen O’Donoghue, CFE
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