Be aware of Global Maxfin Investment - Unscrupulous method of selling mutual funds.
Posted by MFundBuyer on 2009-05-14
TORONTO, OHIO -- Please be aware that Global Maxfin Investment in Ontario has sold me Mutual funds with seven years lock in period by not giving me proper facts, details and even the booklet (Simplified prospectus)
Their novice salesperson who newly joined this business- wanted to sell its products which gives them highest commission and profit. She purposely chose not to explain me all the possible options available. I made clear to her on so many instances that my stay in this country is not more than another 2-3 years.
But sensing my poor knowledge, being first time buyer, she sold me something which was not suitable investment for me for given circumstances of mine.
In a rush to make fat profit she fraudulently sold me wrong product by taking my signatures in no time in parking lot/lobby. I trusted her being a family friend. (Or probably she was pretending to be one to get my business) .
Now she claims that she explained me everything and I opted myself for this product. Had I known proper details I'd have not gone for such financial investment which is much beyond my stay period in this country. Please note that she has done similar transactions with many victims who were ignorant in first place.
It is for every reader to know that Mutual funds you can buy with three options,
Zero load- no-lock-in period (FEL),
Three years ,
and Seven years.
Most advisors or sales man or dealers would not disclose first two options, they will always sell you 7 years lock-in funds in which you are trapped for this period. Besides there is huge penalty involved if you want to sell prematurely. Most dealers/sales agents (Kitchen Table brokers) use third option which fetch them fat commission. All this is done without your knowledge and by giving you misleading information.
For 50000$ investment dealer/agent can make as much as spot 2500$ commission apart from regular monthly cuts. Dozen SIMILAR victims can RENDER them huge profit.While customer is yet to see any returns.
So be aware before you buy mutual funds, make sure you buy with zero load, or low load for three years. Avoid getting scammed by unscrupulous sales agents flooded in your neighbourhood, who are ready to trap you and make use of your ignorance by showing you big dreams.
Now I am struck with those funds for seven years. My agent/dealer- Global Maxfin even promised me earlier that she would pay the penalty or conversion charges, but now with the support of her senior she is refusing to do so.
Just watch out and steer clear if such advisors/ sales agent approach you, who would be friendly to you in first place, make tall promises and show you big dreams of growing your money. They would go to extent of explaining that money grows on tree if you do investment with them.
It is very risky to deal with such companies/agents who sell mutual funds by fraudulent and or unethical means hiding behind fine prints who would take signatures on blank applications and promise you heaven. Those kitchen table agents are known as "Advisors" in their parlance.
It is just that they are making their dreams come true by ripping innocent victims. WATCH OUT AND ALWAYS LOOK FOR ZERO LOAD OPTION, however scam artist may not give you this option or full information.
ONCE YOU ARE TRAPPED YOU CANNOT GET ANY REFUND, AND YOU ARE STRUCK FOR WORSE.
I have reported this matter to MFDA of Canada.
Please report any such scam or ripoff to MFDA.CA or Ontario Security Commission.