The Ontario Heritage Bond Program was a scam circulated by mail, offering an opportunity to earn a 10 percent return on investment. The flyer, which appeared on letterhead similar to that used in some government agencies, claimed that the bonds were sponsored and guaranteed by the Government of Ontario.

The Government of Ontario did not issue, sponsor or guarantee any bonds in the name Ontario Heritage Bond Program.

This scam was perpetrated with the following "red flag" phrases; scam artists often use phrases like these to victimise investors:

• Sponsored and guaranteed by the Government of Ontario.
  
  
• Proceeds to be used to fund the preservation of historic structures in Ontario.
  
  
• Paying 10 percent per year paid semi-annually.
  
  
• Subscriptions are tax free if held to maturity.
  
  
• Minimum investment $5,000.00, maximum $40,000.00.

Government bonds such as Canada or Ontario Savings Bonds are a secure way to engage in minimal risk investing. Scam artists use the illusion of "government authority" to lure potential investors into a false sense of security with Ontario Heritage Bonds. They offer high returns to attract investors, and often use an affinity or interest (in this case funding the preservation of historic structures) to victimise people with particular interests.

Any time you are offered a tax-free investment, you should consult with your professional financial adviser or accountant. Otherwise, you risk incurring a tax liability at a later date. Investment limits are often imposed, to give investors a sense of exclusivity.

If you have been approached to invest in this or a similar investment scheme please contact your provincial securities regulator. Ontario residents can contact the Ontario Securities Commission directly by e-mail or by telephone toll free at 1-877-785-1555.