If you think Craigslist may not be the best place to get stock tips, you’re probably right. The BC Securities Commission is alleging a B.C. man who promoted investments over Craigslist made false statements.
The BCSC has issued a notice of hearing – set for April 3 – to investigate what it says are false claims made by stock promoter Samuel Richard Allaby of Gaia Equity Investments. The allegations have not been proven in court.
Earlier this month, BCSC investigators found an ad in the financial services section of Craigslist promoting investments in Gaia, a subsidiary of Midas Holdings Ltd. Allaby is sole director of Midas, according to the BCSC. The company allegedly invests in renewable energy projects in developing countries.
A BCSC investigator contacted the company through its Craigslist ad and was sent an investment form that contained “numerous false statements and instructions for depositing money in a bank account controlled by Allaby,” according to a BCSC news release.
The company claimed that $4.2 billion had already been invested in the company, which had enjoyed average returns of 257% per year since 2008. Gaia also claimed that “risk-free monthly returns” were backed by the World Bank and International Monetary Fund.
According to his LinkedIn profile, Allaby also is owner of Gaia Promotions, which does SEO consulting, Internet marketing and web page optimization. He could not be reached for comment.
The domain for Gaia Equity Investments’ website is for sale and a phone number on Gaia Promotions’ website is not set up to accept voice messages.
Allaby has a Facebook page and a Twitter account promoting Gaia Promotions, neither of which have any postings by anyone except Gaia Promotions itself.
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