Alberta Securities Commission warns public of suspected investment scheme

A man enter data on the computer keyboard. Photographer: Chris Ratcliffe/Bloomberg

The Alberta Securities Commission (ASC) is warning the public of a suspected investment scheme called BG Wealth Sharing, which is linked to an online-based trading platform known as DSJ Exchange (DSJ EX).

Promoted through social media and messaging apps, it presents itself as a hedge fund claiming to use AI-generated trading signals to produce guaranteed or near-perfect trades and promises to rapidly double investors’ money, said a news release from ASC Tuesday.

Neither BG Wealth Sharing or DSJ EX are registered in Alberta to facilitate buying or selling of investments or securities or to provide investment advice.

According to reports to ASC, BG Wealth Sharing participants are directed to deposit crypto on DSJ EX through several websites and the paste “signal codes” received through encrypted apps like BonChat, WhatsApp and Telegram to place trades.

Those who try to take out funds are met with high withdrawal fees and a time-consuming management approval process.

“Information further suggests deposits are quickly consolidated and routed through crypto bridges, a technique commonly used to obscure the movement of funds,” said the ASC.

Warning signs associated with BG Wealth Sharing and other schemes include:

• Frequent use of rotating or lookalike website domains to evade detection such as e.g., bg877.com, bg661.com, dsjex.net, dsj89.com, dsjex123.com, and other variations.
• Promises of guaranteed or unrealistic daily returns, including claims that participants can double their funds within 60 days or rely on near-perfect algorithmic trading signals.
• High-pressure recruitment and multi-level marketing like incentives.
• Restrictions of accessing funds like high fees, early-withdrawal penalties and needing management approval.
• Use of mobile apps not available through official app stores.
• Fabricated endorsements and misleading regulatory claims.

The regulatory agency advises that BG Wealth Sharing should not be confused with BG Wealth Group Inc. and other BG Wealth entities that appear to be operating as an Ontario-based real estate investment and financial consultancy group.