Canadian Spam Scam Warning

Canadian federal bank insurer CDIC is warning North American investors that its name has been falsely used in conjunction with an investment spam scam.

by Roy Mark of www.internetnews.com [August 15, 2002]

The Canada Deposit Insurance Corporation (CDIC) is advising North American investors and depositors of an apparent internet fraud scam falsely involving CDIC that is currently underway by a person or group of persons carrying on business as the Maryland Investments Club.

CDIC is a Canadian Crown corporation (i.e., government entity) established by the Parliament of Canada in 1967 to provide deposit insurance against the loss, in whole or in part, of deposits with member institutions in the event of their failure. CDIC does not issue or hold investment certificates of any kind for any person.

The scam involves offering cashable guaranteed investment certificates called "digital investment certificates" for sale over the Internet. These certificates are purported to be issued by MD Private Trust Company and are said to be held electronically and guaranteed in full, by the Canada Deposit Insurance Corporation. This is not the case, according to the CDIC.

The signature of CDIC's general counsel, Gillian Strong, on any Maryland Investments Club documentation is a forgery. The certificates falsely bear the Government of Canada wordmark and the logo of the CDIC.

CDIC has turned the matter over to the Royal Canadian Mounted Police (RCMP) commercial crimes section for further investigation and has informed authorities in the United States. Depositors and investors who wish to ensure their deposits are insured by CDIC should first determine whether the institution issuing the investment or deposit certificate is a member of CDIC and if so, should then determine whether the investment or deposit account is eligible for deposit insurance by asking to see the deposit register for the member institution.

To date, two investors in the United States have purchased false digital investment certificates.

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