Investors in Western Canada warned of stock-repurchasing scam

Securities regulators issued an alert to investors Tuesday about a scam that might be operating in all four provinces of Western Canada.

The Alberta Securities Commission (ASC) described it in a news release as a "recovery room" scheme in which individuals contact the owners of thinly traded stocks that have lost value. The scammers offer to buy the shares at inflated prices, ask for a fee to handle the transaction and keep the fee but do not repurchase the stock.

The ASC's warning is specifically aimed at Alberta investors of York-Rio Resources Inc. and TLC Explorations Inc.

The Saskatchewan Financial Services Commission has halted trading in shares of the Castleton Group, Beltway M&A and by several individuals operating under the names Joshua Stevens, Patrick Thompson, Vick Newman, Daniel Greco and Jim Young.

Similar alerts have been issued by securities regulators in Manitoba and B.C., which said a company called Penn Capital Management Ltd had contacted York-Rio Resources Inc. investors in those provinces about repurchasing their shares at inflated prices for a fee.

The ASC is asking anyone who has been approached with such repurchase offers to contact its public inquiries number at 1-877-355-4488.