Beware energy company that says it converts plastic to fuel, securities commission warns

By | October 9, 2019

The Manitoba Securities Commission has issued an alert about a Nevada-based energy company that’s promising a 35 per cent return to Manitoba investors despite not being authorized to trade securities in the province.

“At a minimum, this is a fairly complex, high-risk investment being offered by a company working outside of compliance with securities law,” said Jason Roy, a senior investigator for the commission.

“We advise Manitoba investors to be extremely cautious with this type of offering.”

The Manitoba Securities Commission, a part of the Manitoba Financial Services Agency that protects investors and promotes fair and efficient capital markets throughout the province, said in a news release that Aureum Energy did not follow provincial registration and disclosure requirements.

Aureum Energy, which operates in Las Vegas, Manitoba and B.C., says it converts plastic waste into fuel and has been actively seeking investors in Manitoba without authorization, says a news release from the commission.

The company has been seeking investments of about $13,000 to more than $650,000, and promising a 35 per cent annual return on investment over a 21-month period, the news release says.

Manitoba residents that have been solicited by Aureum should contact the Manitoba Securities Commission.

The commission has these tips for potential investors in any project:

  • Check an individual or company’s registration at aretheyregistered.ca.
  • Research the investment before committing money to it. Investment fraud red flags include promises of high returns with low risk, pressure to invest quickly and inconsistent details.
  • Never send money or provide personal information on the basis of an unsolicited phone call or email.

Members of the public are advised to contact the commission if they believe they have been targeted by any type of investment fraud attempt. MSC’s anti-fraud line is 1-855-FRAUD-MB.