Warning to Investors

October 1, 2008

Below is a link to an article from the "La Nacion" newspaper
You may be surprised to recognise some of these names.

http://www.nacion.com/ln_ee/2008/octubre/01/economia1720770.html
I have translated it below:

SUGEVAL warning to investors:
23 companies are offering securities without permission

Entities attract customers by offering high returns for their money
Superintendent cautions that they exercise no control over these companies
Mercedes R. Agüero (author of article)

The Superintendency of Securities (SUGEVAL) warned investors yesterday that 23 companies are offering financial products and brokerage services outside the law.

The firms promise high returns, account management positions through stockbrokers abroad, operation with one or more corporations and the use of Internet sites, warned SUGEVAL.

Also, on its Web site, the Superintendent published the list of companies that operate without their permission.

According to the Law of the stock market, the offering of securities in the Costa Rican territory, from abroad to Costa Ricans or from our country to foreigners without proper authorization SUGEVAL, is a wrongful act that is punishable by imprisonment.

The Securities Commission reported that over the years has received 18 complaints against such firms.

"SUGEVAL conducts a preliminary investigation when it receives a query or a complaint of this type. If irregularities are found it is necessary to put the case in the hands of judicial authorities," said Eddy Rodriguez, head of Securities.

Rodriguez did not specify whether any of the 23 companies have already been forwarded to the Public Ministry.

The official said that a warning signal that they are "financial fly by nights" (I cant think of the precice word for "chinamo" in English) is that these companies are not regulated in any country. Typically these companies make bids by phone or email.

"If you have already put your money in the hands of such businesses, it is important to note that getting back what was invested is almost impossible," said Rodriguez.
Companies without authorization

Under the microscope

List of entities as SUGEVAL are not registered with the National Registry of Securities and Intermediaries. These companies do not have authorization to do SUGEVAL public offering of securities or brokerage services:

Armtrust, S. A., Capital Managers Clearing Corporation, Capital Managers Corporation, CR-Home S. A., First Republic Group of Funds, S. A., First Republic Securities Management & Consultant, S. A., Forex Latin Trader, Future Power Industries, Goldmill Wagner Associates (GWA), Hartford Capital Management, Interglobal Finance S. A., Interglobal Mergers and Acquisitions Inc., International Currency Traders S. A., Kennedy Investments Ltda., Kerford Investments S. A., Meridian Trading Group, Rosswell Spencer, Trade Exchange S. A. also known as "Tradex", State Trust Group, Strategic Management, United Holding International, Universal Ventures y Wellington Trading Group.