Bismarck, ND - North Dakota Securities Commissioner Karen Tyler has recently issued two Cease and Desist Orders to entities selling off-shore sweepstakes investment schemes to North Dakota residents. The orders were issued against EuroBond Fidelity, Ltd., an entity headquartered in Hungary, and West East Developments, Inc., located in British Columbia.The investments offered by EuroBond and West East are similar in structure and entitle the investor to be entered into numerous sweepstakes on a global basis. The return to the investor is in the form of winnings from the sweepstakes, projected by the companies to range from $50 to $1 million. Both entities also promise the return of the original investment after a certain period of time.EuroBond and West East Developments solicited investors through telemarketing efforts, and investors provided debit or credit card information to pay for their investments.Like most off-shore investment schemes, the sweepstakes investments described above were sold without being registered as a security with the North Dakota Securities Department. This registration is required to protect potential investors from fraudulent operations.It is difficult, if not impossible, for government agencies to ensure that off-shore entities will honor their covenants and responsibilities. Because of this, the Securities Department urges North Dakotans to use caution in dealing with off-shore entities, and advises individuals to contact the Securities Department to verify registration of the security and the seller before investing with any off-shore entity.If you have been solicited by EuroBond Fidelity, Inc. or West East Developments, Inc., please contact the North Dakota Securities Department at 701-328-2910 (Bismarck local) or 1-800-297-5124 (ND toll free).
