A recently busted Alberta-based Ponzi scheme worth up to $400-million has been revealed to have some Coast connections.
A recent Globe and Mail article states that as many as 3,000 Canadians and Americans may have been duped by Milowe Brost and Gary Sorenson, both charged with fraud over $5,000 and theft over $5,000.
Brost allegedly set up a business called the Institute for Financial Learning (IFL), which sent instructors called "structurists" to hold seminars and gather investors.
Gibsons' resident Michael Maser remembers when structurists were visiting the Coast in 2006 looking to educate investors and convince them to invest in foreign mining operations. He went to their meetings to see what their message was.
"They came out and they had gold bars and lots of gold jewelry and it's all part of the set-up. It's all part of the enticement," he said. "It was like baiting the hook."
Maser said he remembers at least 50 people signing up for their courses, many of whom went on to invest.
Maser, an experienced investor and a former mining consultant, began researching the IFL's claims of over 40 per cent returns on investment in mining companies.
"I've seen a lot of scams in my day and I thought 'I'm in the middle of one right here,'" he said.
Maser tried to steer people away from the structurist's pitch, but he said many people were convinced the investment advice would benefit them financially.
Residents concerned they may have been part of the scheme can report it to the RCMP by calling 604-885-2266, or contact Phonebusters at 1-888-495-8501 or at www.phonebusters.com.
