Group of BVI Funds banned by Quebec authorities
This week, a group of offshore investment funds registered in the British Virgin Islands has received a trading ban from Quebec securities regulators, for soliciting investors on the Internet. Bureau de décision et de révision en valeurs mobilières issued the order against several BVI funds and their promoter, at the request of the Autorité des Marchés Financiers (AMF).
The funds that are now prohibited from securities operations in Quebec are Future Growth Group Inc. (alleged of having sold units to 165 investors), Future Growth Fund Ltd., Future Growth Global Fund Ltd., Future Growth Market Neutral Equity Fund Ltd., and Future Growth World Fund; their promoter is Adrian Samuel Leemhuis, - an Ontario mutual fund salesman, according to an AMF statement. These BVI funds are not registered in Quebec, and have not issued an approved prospectus in Canada. Leemhuis hasn’t co-operated with investigators from the OSC or the Mutual Fund Dealers Association of Canada.
The Ontario Securities Commission has frozen about $8 million in assets of BVI-registered Future Growth Global Fund and Future Growth World Fund, and issued a trading ban on the same parties targeted by the Quebec authorities.