The Nova Scotia Securities Commission (NSSC) has imposed a permanent cease-trade order against the operators of an alleged boiler room.
Specifically, the NSSC has reciprocated a permanent cease-trade order that the Financial and Consumer Services Commission of New Brunswick (FCNB) imposed against Stratus Financial Group International and Ken Powers, a Stratus representative, earlier this year.
The FCNB issued an order against Stratus and Powers on Jan. 30 for allegedly violating securities laws by operating a boiler room in that province. Regulators in Nova Scotia issued their own temporary cease-trade order against Stratus and several others in April.
Now, the NSSC has reciprocated the FCNB’s order, imposing a permanent ban. The order notes that neither Stratus or Powers responded to the NSSC’s application for a permanent cease-trade order.
The regulator is also warning investors to be aware of boiler room scams, which utilize high-pressure sales tactics to pitch highly speculative, and sometimes fraudulent, investments.