The ‘Sucker List’

You may think of your own defenses as impenetrable. You may dismiss the chances that you could ever fall victim to one of these schemes. If that is you, you are in serious jeopardy.

The U.K.’s Financial Services Authority (“FSA”) has discovered a list of prospective victims in a case involving schemes to sell shares of nonexistent companies.  There are 38,000 names on the list.  According to columnists from the UK’s Mail.co.uk, “This hit list consists of intended targets largely living in London and the south east but also with many names in Yorkshire and Lancashire.”  Investors in those areas, beware.   (more…)

UK’s Serious Fraud Office Charges Seven in Connection with International Fraud

British authorities have charged seven people with conspiring to defraud UK investors out of more than $100 million through a series of boiler room operations.

British authorities have charged seven people with conspiring to defraud UK investors out of more than $100 million through a series of boiler room operations.  The brokerage firms involved, Tresadern & Partners SL,  Pricestone Group SL and Anderson McCormack SL, were based in Spain.  Through those firms the defendants allegedly sold UK investors shares in sham American companies.  The authorities alleged that the market for the shares involved was created through market manipulation involving false press releases and artificially created trading volume.  The allegations sound very much like the pump and dump schemes that constantly plague American investors. (more…)

UK Case Highlights Characteristics of a Modern Ponzi Scheme

A jury in Harrow Crown Court northwest of London has convicted Kevin Foster of operating a Ponzi scheme that defrauded hundreds of investors out more than 34 million pounds. Foster’s scam is a good primer on how many high profile scams operate today.

A jury in Harrow Crown Court northwest of London has convicted Kevin Foster of operating a Ponzi scheme that defrauded hundreds of investors out more than 34 million pounds.  Foster’s scam is a good primer on how many high profile scams operate today. (more…)

UK’s Financial Services Authority Warns of Scamsters Impersonating Authorized FSA Firms

UK’s Financial Services Authority Warns of Scamsters Impersonating Authorized FSA Firms

The UK’s Financial Services Authority is warning investors about a new tactic used by boiler room stock operations, which use high pressure sales tactics to force risky securities onto unsuspecting investors.  According to the FSA, unscrupulous operations are posing as brokerage firms that are authorized by the FSA.  The illegitimate operation may even clone the website of an authorized firm, changing only the telephone number and address, to fool investors.  The FSA advises:

Should anybody receive an unsolicited call or email from a firm which they are not a customer of, the FSA is recommending that people should take the following steps:

  • ask for the contact details of the person calling you;
  • check the firm or individual’s status on the FSA register;
  • call the firm back on the switchboard number provided on the FSA register to make sure that the call came from the legitimate authorised firm.

Anybody who has been contacted by a suspicious firm or has any doubts should report the encounter as soon as possible by calling the FSA on 0300 500 5000 or reporting it online.

This warning from the FSA points out the challenge facing every investor: knowing who to trust.  Every scam artist portrays himself as someone he is not.  This is just the latest variation of that practice.  If all you know about a broker is what you learned from him or what you read on a website he or his employer created, you are at great risk of losing everything you have worked and saved for.  Learn what the broker his not telling you by asking an investor protection company to do a pre-investment investigation.

UK’s FSA Bans London-based Hedge Fund Manager

The UK’s Financial Securities Authority (“FSA”) has banned London-based hedge fund manager Simon Treacher from the securities industry and fined him £140,000 after finding that he materially altered trading records to make it appear that his trades were more profitable by approximately $27 million. According to the FSA’s press release:

The UK’s Financial Securities Authority (“FSA”) has banned London-based hedge fund manager Simon Treacher from the securities industry and fined him £140,000 after finding that he materially altered trading records to make it appear that his trades were more profitable by approximately $27 million. According to the FSA’s press release: (more…)

 

UK’s Serious Fraud Office Investigating Cayman Islands Hedge Fund

In the United Kingdom, the Serious Fraud Office (“SFO”) has the ability to file criminal charges against those suspected of engaging in financial fraud.  Recently, the SFO announced that is conducting a criminal investigation of a hedge fund operated in the Cayman Islands, Dynamic Decisions Capital Management Ltd. (“Dynamic Decisions”).  The SFO’s press release reads as follows:

In the United Kingdom, the Serious Fraud Office (“SFO”) has the ability to file criminal charges against those suspected of engaging in financial fraud.  Recently, the SFO announced that is conducting a criminal investigation of a hedge fund operated in the Cayman Islands, Dynamic Decisions Capital Management Ltd. (“Dynamic Decisions”).  The SFO’s press release reads as follows: (more…)

 
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