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Special Alerts

SA-131-2007
May 16, 2007


TO: CHIEF EXECUTIVE OFFICER (also of interest to Security Officer)
SUBJECT: Borealis International May Be Conducting Banking Operations in Canada or the United States Without Authorization
Summary: The Office of the Superintendent of Financial Institutions (OSFI) of Canada has identified Borealis International as an entity that may be illegally operating as a financial institution.

The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published the attached "Warning Notice" (Issue No. 74), which states that Borealis International is not an authorized, federally-regulated financial institution [Canadian]. According to the notice, Borealis International is soliciting deposits, which it claims are "guaranteed by a Canadian Trust, to grow 10% -18% Per Year." Material previously posted to the Borealis Web site claimed that such deposits were:

"insured by one of the world's 3 largest re-insurance companies. Canada Deposit
Insurance Corporate protection (CDIC) only protects the first $100,000 Cda$ in banking
products. We protect you beyond that."

The Borealis Web site also indicated that deposit taking was offered through "Atlantic Trust Company." Other names associated with Borealis International are "The Laiki Group" and "The Synergy Group."

Borealis International is not insured by the Canada Deposit Insurance Corporation. Any proposed transactions involving this entity or persons purported to represent that entity should be viewed with extreme caution.

The following information is provided in Warning Notice No. 74:

Borealis International
311 George Street
Peterborough, Ontario, Canada
K9J 3H3
Web site:   www.borealisglobal.com/index.htm
                 www.borealisfinancial.com

Each "Warning Notice," beginning with Issue No. 1, through OSFI's latest "Warning Notice" may be found at: http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=166.

To report any scam based in or mailed from Canada, please contact Phonebusters, which is a joint partnership between the Ontario Provincial Police and the Royal Canadian Mounted Police. Phonebusters is interested in receiving copies of scam letters, particularly those involving Canadian mailing addresses or telephone numbers. Records relating to the payment of advance fees should also be forwarded to Phonebusters. This information is used to assist in the strategic targeting of would-be fraudsters. Scam letters should be forwarded to the Phonebusters National

Call Center (PNCC) as follows:

Mail: Box 686
North Bay, Ontario, Canada
P1B 8J8
Web site: www.phonebusters.com
Telephone: +1 (888) 495-8501 (toll-free in Canada and the USA)
Fax: +1 (888) 654-9426 (toll-free in Canada and the USA)
E-mail: info@phonebusters.com
Advance fee fraud (including Nigerian and lottery letters): wafl@phonebusters.com

Information about counterfeit items, cyber-fraud incidents, and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-4004, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov.

Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

For your reference, FDIC Special Alerts may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/specialalert/2007/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

Sandra L. Thompson
Director
Division of Supervision and Consumer Protection

Attachment - Can be found at:
http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/consumer/notices/Warning_Notice_74_e.pdf

Distribution: FDIC-Supervised Banks (Commercial and Savings)

Paper copies of FDIC Special Alerts may be obtained through the FDIC's Public Information Center, 1-877-275-3342 or 703-562-2200).




Last Updated 5/16/2007 communications@fdic.gov