Warning To Investors - Securities Commission
Release: Securities Commission
WARNING TO INVESTORS
QUANTUM EXECUTIVE CORPORATION & PROSPER LEAGUE INTERNATIONAL LIMITED
Investors are warned to take great care before committing money to Quantum Executive Corporation (Quantum) and Prosper League International Limited (Prosper).
Quantum appears to be based in Antigua in the West Indies. Prosper appears to be an American company operating out of Nassau in the Bahamas.
Our information indicates that New Zealanders have been remitting significant sums of money to these companies in recent weeks.
Quantum's advertisements were banned by the Commission in 1998 because they did not comply with New Zealand securities law. At the time Quantum claimed to guarantee returns of 100% per year on the principal invested.
Prosper took part in the Quantum investment arrangements. Prosper claimed to provide an "international tax haven account" which would be used to receive investors' funds. This account was said to be registered in Belize.
On the evidence available to the Commission at the time, John Edward Baylis acted as a New Zealand agent for these companies and promoted their schemes in this country. Baylis was named in the banning order.
The Commission has issued warnings about Baylis in connection with IMI Pacific Group Limited and Walakahai Pacific Corporation Limited, now in statutory management. Baylis is a director and shareholder of each of these companies.
On the evidence available to us Baylis has continued his association with Prosper, either personally or through IMI and Walakahai. It would appear that he has used Prosper entities in the arrangements to hold New Zealand property bought with funds derived from New Zealand investors through the activities of IMI and Walakahai. The circumstances are described in the Statutory Managers' report of 2 February 2000.
The Commission again warns people not to be mislead by offers that seem too good to be true and where there is little information about the investments and the companies involved. If in doubt seek expert advice.
John Farrell Chief Executive