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Beware of FSM Smart 'investment scam,' Quebec securities regulator warns

Quebec’s securities regulator is warning investors about an investment scam run by an illegal enterprise.

FSM Smart has been calling Quebecers, claiming to offer investors “the opportunity to earn guaranteed extra income,” the Autorité des marchés financiers said in a release.

“However, contrary to what they claim, the money invested through FSM Smart is not deposited in the investors’ accounts,” according to the AMF.

The AMF said that FSM Smart employees are “insistent” when selling and that when investors try to get their money back, the fake investment firm tries to get more money out of them, using a variety of tactics.

“In particular, they let investors believe that they can take out insurance to cover their losses, but the insurance can only be activated by adding more money to their account,” the AMF said. “All such offers are merely ruses to swindle the victims out of their money.”

FSM Smart isn’t licensed to sell securities in Quebec, the AMF said. However, when calling potential victims, the FSM Smart employees reference widely used legal trading platforms and, “to bolster their credibility, the employees use the identities of individuals who are actually registered with the AMF.”

Anyone who has received a call claiming to come from FSM Smart — as well as anyone who has given the company money — is encouraged to contact the AMF.