Great Idea!!
I have worked in that industry and can describe exactly how they sound so convincing and the process in which they operate and control the punter thru the deal.
We need to post the 1st call scripts so people know when they are hearing these tactics and can hangup on them.
If you get a call from a stranger claiming to be a Senior Portfolio Manager and immediately starts trying to control the conversation, It's probably a boiler room. They have a method for getting you to buy. It's called CLID, Control=If you can control the guy you have a chance to sell him. Liquidity=They will tell you about the FANTASTIC returns and give example of MIMO=Money in=Money out ( your profit if you invest. Then say something like " Those are fantastic returns for only six months. Don't you agree?" Then ask if you are liquid for $50k. Most people are not but that gives them some credibility by asking for too much. If you say thats too much then they have rebuttals. "John, I'm a businessman and you are a businessman. I'm much more interested in your repeat biz, etc. If $50k is too much start with a smaller amount. The percentage profit is the same. Judge me on the results. Blah blah blah.
They have a convincing rebuttal for every conceivable objection you can come up with. "I need totalk to my Lawyer, Accountant Wife etc." "Your WIFE!? John, when is the last time you came home and caught your wife reading the Wall Street Journal?
Next with CLID, we have Interest. You have to be interested in making those kind of profits. They say No Greed, No Need.
And last there is Decision maker. They will ask you if you make your own investment decisions.
If they feel they have CLID with you then they will not put down the phone until they close you. You will go round and round with them dropping the position from $50k to $45k to $40 k . . . until they find a comfortable amount for you to invest The boiler room minimum is usually $5k. Then you agree to buy and need to talk to a "Compliance Officer" for your protection. This is usually the room manager calling after 10 min and will inform you that the call is being recorded.BUlls###! OH! And then they will get serious and give you the "Button Up" speach. That bit about how you are going to make a lot of money and just follow my advice and we will make a lot of future trades together. He will say, " I do 90% of my biz over the phone and for that reason my word is my commitment to my clients.. . All I ask from you is the same consideration, Do I have your word that you will make the transfer? Then, Are you sure? Ok your word is good enuf for me.
Then you will recieve the documents and TT instructions so you can send money. Then the "broker", usualy some ****** from the east end or liverpool will get $100 on his desk for a complied deal.
I'm tired and is is late. I will continue to share my knowledge about these scammers as I have time. Cheers to all you boiler room scum. Your world just got smaller!
Yep have had some of that stuff over the phone.
One of their favorite lines is to ask how have your investments performmed when I tell them really well they then move on wrong answer I guess lol.
I only entertain them when I'm bored as I used to be in (legit) sales and it can be quite interesting sometimes.
I also get the impression if they can not sell to you they try and get more info from you to add to your "file"
There is nothing they could tell me I would believe as I take the view that anyone cold calling selling investments are crooks.
