There was a warning issued in Canada regarding KaratBars as an investment program.

So far, no warnings have been posted in the US, but typically the SEC doesn't issue warnings - they take action. Since I want to be fair, I want to point out there is currently no indicator that any such thing will happen.

From what I've seen of KaratBars, there is actually a physical product being sold - the gold ounces embedded in a credit card style delivery medium - so the only snag I reasonably foresee them running into is if it is being offered here as an investment opportunity as well.

That's a whole separate animal from the standard business opportunities laws, which just get the local Attorney Generals interested. If a company starts tweaking their nose at the securities laws, well, then their executives can end up like Paul Burks at ZeekRewards. http://www.npros.com/press/2014/10/28/3307/zeekrewards-president-indicted-on-federal-charges.htm

Warning - Karatbars investment program

Thursday, March 20, 2014

Montréal – The Autorité des marchés financiers ("AMF") urges Québec investors to be cautious about an investment program linked to the German company Karatbars International GmbH whose investment products are primarily promoted through conferences, the Internet and social media.

With the company's "Affiliates" program, investors can make Internet-based purchases through Karatbars plans and they are encouraged to recruit two other Affiliates. These Affiliates are in turn encouraged to recruit two other Affiliates each, and so on. Affiliates are lured by the possibility of earning large payouts, in particular through a percentage of amounts collected from the Karatbars plans and gold products purchased by referrals.

The AMF reminds investors of the risks involved when investing in companies such as Karatbars that are not reporting issuers and do not hold AMF registration or authorization. Quebeckers should therefore be cautious with product offerings from Karatbars since they might incur losses that are not covered by the financial services compensation fund or deposit insurance.

The AMF is closely monitoring this matter and will take any measures deemed necessary in the event of violations under the laws it administers.

Reminder to investors

As part of fraud prevention month, the AMF wishes to remind investors of the importance of being cautious before making an investment (document in French only) regardless of where the firms or individuals offering investments are based. Investors should make sure that firms and individuals acting as intermediaries are authorized to do so by consulting the register on the AMF website or calling the AMF Information Centre.

The AMF further reminds consumers that the gold market in which Karatbars operates is a complex market. The value of gold can be influenced by social, political or economic events, as well as numerous other factors. This market is not for every investor, and if someone tells you otherwise, beware.

If you believe you have been defrauded through an investment in Karatbars, we urge you to contact the AMF Information Centre.

The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.

check out this website. We are the only company they have ever written a positive article on. http://fraudandscam.com/.../karatbars-overcomes-speculation/

Riselle Bonner said:

check out this website. We are the only company they have ever written a positive article on. http://fraudandscam.com/.../karatbars-overcomes-speculation/

Link didn't work?

It does not appear to be an authoritative site - just aggregated content with long-tail key phrases for search engine traffic.

An endorsement in broken english from an unkown site doesn't carry much weight.

I think you should first of all be honest when you say CANADA WARNING, this warning comes from the Socialist state of Quebec only, it is grossly unfair of you to to use the word Canada implying that the whole country of Canada has issued a warning which as you know is a lie ! also this is a WARNING only, there whole interpretation of the Karatbars opportunity is laughable and Karatbars Lawyers have pointed this out to them, all has gone quiet now i wonder why, in future dont post blatant untruths about a company, we are all here trying to promote our opportunity this kind of irresponsible behaivour is totally uncalled for.

Karatbars International is available legally in over 100 countries for the past 6 years without any Legal problems whatsoever, only good old Quebec where the HQ of a well known Gold company are located seems to have a problem with Karatbars, GO FIGURE !

Patrick I think you are going a little overboard yourself here. Last I heard Quebec was still a province. And the heading says 'warning IN Canada' not Canada warning so you are the one makining this seem bigger. Also then what if this had happened in say Victoria. Am I to think that is the city in Canada, a state in Oz or where? Some guy in Quebec was promoting Karatbars as an investment to get people to join. That is wrong. Even the company states not to promote that way as it is not. You are buying into a business that you have to work at to profit from. Most investments mean sit back and wait and the money will come.