August 26, 2002
Canadian banking officials are warning of an Internet scam that uses the name of the Canada Deposit Insurance Corporation (CDIC) and claims to offer "digital investment certificates."
The agency said the perpetrators, calling themselves the Maryland Investments Club, is selling the fictitious certificates which it claims are held electronically and guaranteed in full by the CDIC, the Canadian equivalent of the U.S. Federal Deposit Insurance Corporation (FDIC), which guarantees bank deposits. Neither agency issues investment certificates of any kind.
In fact, CDIC said, the Maryland Investments Club offering is a scam. The signature of CDICs general counsel, Gillian Strong, on any Maryland Investments Club documentation is a forgery and the certificates falsely bear the Government of Canada wordmark and the logo of the Canada Deposit Insurance Corporation.
The CDIC said that at least two investors in the United States have already purchased the false digital investment certificates.
CDIC insures over $330 billion(Cdn) of deposits at member banks, trust companies and loan companies. To be eligible for insurance, deposits must be in Canadian currency, payable in Canada, and repayable on demand or no later than five years from the date of deposit. Eligible deposits up to $60,000 per depositor at each CDIC member are insured.
