Eight Is Enough?

Canadian stocks fell yesterday, as investors took profits following eight straight days of gains. The S&P/TSX Composite index fell 184.14 points, or 2.12%, to close at 8506.35 as oil and gold prices slumped after sizable run-ups the day before. For the week, the country's top exchange climbed 2.4% from its previous week close of 8303.39. Meanwhile, the TSX Venture exchange was down 1.77 points, or 0.20%, yesterday, closing at 901.80. The Canadian dollar fell 12 basis points to US80.68¢.

"With commodities down, we didn't have much of a chance yesterday," said Michael Sprung, a portfolio manager at Sprung & Co. Investment Counsel in Toronto. "Particularly after the financials had taken such a run it isn't surprising that people decided to lock some of that in."

Losers outpaced gainers by more than two to one in Toronto, with nine of the exchange's 10 subindices ending the session in the red.

The materials group fell 3.23% as prices for base and precious metals retreated. Gold fell US$2.60 an ounce to US$956.20. Teck Cominco Ltd., (TCK. b/TSX) was among the most active stocks in the metals and mining space, with more than 17 million shares trading hands. After rising as much as 7% in early trading, the diversified miner ended the day down 0.68%, or 4¢, to $5.88 on news its credit rating was cut to junk by Standard & Poor's because low metal prices will make it harder to fund or refinance its debt.

Financial and energy stocks also dropped, giving up 2.05% and 1.13%, respectively. Light sweet crude oil was slightly lower at US$51.06 a barrel, down US55¢.

`Ponzimonium' as scams come to light

`Ponzimonium' as scams come to light TheStar.com - Business - `Ponzimonium' as scams come to light

Fraudsters being unmasked by soured markets: U.S. regulator

March 21, 2009

BOSTON–Hundreds of people are under investigation for financial scams, many involving Ponzi schemes, a U.S. regulator said, calling the phenomenon "rampant Ponzimonium."

While none are as mammoth as disgraced financier Bernard Madoff's $65 billion (U.S.) fraud, multimillion-dollar "mini Madoffs" are proliferating from New York to Hawaii, the head of the Commodity Futures Trading Commission said.

So far this year, the agency has uncovered 19 Ponzi schemes, which depend on an influx of new capital instead of investment profits to pay existing investors. That compares with just 13 for all of 2008.

"Because of the economy, people are seeking redemptions more than they ever have and that's making a lot of these scams go belly up," Bart Chilton, head of the commodities commission, said in an interview.

In the last month, his agency has pursued investment fraud in Pennsylvania, New York, North Carolina, Iowa, Idaho, Texas and Hawaii.

Chilton called the problem "rampant Ponzimonium" and "Ponzipalooza" – a play on the name of the Lollapalooza music festival.

Many scams are small but grew fast to support lavish lifestyles, like the suspected $40 million, five-year Ponzi scheme that came to light last month when a North Carolina man committed suicide.

Claiming to be an expert mathematician, Bruce Kramer persuaded 79 people to invest in a so-called foreign currency trading operation.

Instead, he funnelled money into a Maserati car, a $1 million horse farm, artwork and "extravagant" parties, according to a complaint.

As the economy soured, Kramer struggled to find new clients to keep the scheme going. In the days before his suicide, his investors demanded their money back and grew suspicious when they couldn't access their own funds, said Chilton.

The Securities and Exchange Commission also faces swelling Ponzi files, including charges Texas billionaire Allen Stanford bilked investors of $8.8 billion.

Reuters News Agency