Investors on alert as City police uncover boiler room master list (From The Northern Echo)

Investors on alert as City police uncover boiler room master list

10:39am Tuesday 16th March 2010 in

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AUTHORITIES are warning investors to be on their guard after they uncovered a list of people fraudsters were planning to target and sell worthless shares to.

The Financial Services Authority (FSA) and City of London Police (CoLP) are contacting 1,000 people across the UK to warn them that their personal details are on the boiler room “master list”.

Many of those targeted are experienced in buying and selling shares, because their details appear on share registers.

It is the second share fraud master list obtained by the FSA and CoLP this year.

It contains the names and telephone numbers of about 750 people, and the names and addresses of 250.

The list was discovered by the FSA and CoLP as part of Operation Warn, which was launched last month.

It came in the wake of an increase in fraudsters selling shares using the names, registration numbers and addresses of genuine FSA authorised firms and individuals to try and convince consumers of their legitimacy.

Jonathan Phelan, head of the unauthorised business department at the FSA, said: “This is the second master list we have obtained in as many months.

“Our sources indicate that the list is a new one and still in use by the fraudsters, so by contacting people on it we hope to cut these boiler rooms off at the pass.

“Raising awareness of this type of fraud through publicity is one of the best tools we have to prevent people getting involved and losing their money.

“Legitimate share dealers and brokers will not normally cold call people offering to buy or sell shares, so if you get one of these calls just hang up and report it.”

Detective Chief Superintendent Steve Head, in charge of the CoLP’s economic crime directorate said: “Preventing people from becoming victims of these insidious criminal networks is an enormously important aspect of our work and I would like to take this opportunity to thank everyone who has contacted us to help identify them.

“I would also urge anyone receiving cold calls of this nature not to part with any money, and instead to contact the police or the FSA.”

Fraudsters usually contact people by telephone and use high-pressure sales tactics to con investors into buying nontradable, overpriced or even non-existent shares.

These share fraudsters, operating from so-called boiler rooms, are unauthorised, overseas-based companies with bogus UK addresses and phone lines routed abroad.

Any company that cold calls to sell shares should be reported to the FSA or police.

Anyone concerned about being a victim of share fraud can call 0300-500-50.