TORONTO - The Ontario Securities Commission is warning investors to beware of investment schemes being marketed under the name of either the Alpha Project or the Flat Electronic Data Interchange, (FEDI). Investors are being solicited to invest in a product that is not registered under the Ontario Securities Act, by people who may not be registered to sell securities in Ontario, in contravention of the Ontario Securities Act.

The schemes supposedly involve investment in a desk or a seat in FEDI, which is claimed to be "equivalent to owning a seat on the Chicago Mercantile (Commodity) Exchange or a seat on the New York City Stock Exchange". Potential investors, who are asked to sign confidentiality agreements before they are given any information about the purported investment schemes, are being pressured to invest US $125,000 on an urgent basis. Under the schemes, investors' money is said to be sent and managed offshore.

The schemes appears to incorporate many elements about which investors should be wary, including confidentiality agreements, funds being sent offshore, an ill-defined ownership structure, mysterious foreign millionaires, very high returns, guarantees of no risk and assurances of full insurance of funds, in this case by organizations that do not actually insure investments.

It is understood that investors in the following areas, at a minimum, may have attended information sessions about these schemes: Toronto and surrounding areas, Ottawa, Sarnia, Calgary, Vancouver, Victoria, and several jurisdictions in the United States, including Michigan.

People considering investing in these schemes are strongly encouraged to consult a registered investment advisor before investing. Anyone with further information or who would wish to file a complaint about these schemes is encouraged to contact the Ontario Securities Commission at 416-593-8314 or toll free at 1-877-785-1555.