Boiler Room Scams

If you were cold called, it was probably from a boiler room. They do all sorts of scams while they are setting up the next scams. Some scams take time to make web pages, brochures ect. and now that everyone knows more about them, it is taking longer to set these scams up. If you check their domain registration and find out that it has been regerstered for less than for only one to two years, than you know that it is 99.9999% sure it is a scam. They are trying to make their web page registration dates longer but they run into other exposure problems before they can complete the scam. Knowledge about them is still the best.

Thanks to all put their advise or comments on these scum operations.
 
I have 5,000 shares in General Components [GCPO] which is regarded as a boiler room stock. The company has changed its name to HiTech Wealth and China Mobile Media. I was therefore surprised and sceptical when I was called by someone representing Legg Berman Acquisitions management in Chicago offering to purchase @ $26.24 per share. The agreement they have sent does not appear to be asking for any further monies but I am not rushing to complete it. Has anyone had a similar approach or do they have any further info?
 
They won't ask for money up-front - they try to tease you in gently. First you invest a bit of time filling in the forms, next they ask for a tiny amount of money, then a slightly bigger amount. At each stage they structure it to play on your greed, so you're only betting a tiny incremental amount relative to the big payout they promise, but every step just gets you in deeper.

Legg and Berman's website was registered on the 30th May 2010. I think that gives you your answer.

http://www.whois.net/whois/landbmanagement.com

From our usernames, I guess we have something in common.
 
Gash

You're too naive in that you think there's a possibility they might NOT be scammers.

Listen, you're being setup it's as simple as that and they feel you're a good mark because they were able to set you up before to steal your cash.

Anyone and everyone that calls you about your shares is a thief but of course they'll be clever, charming, know their business, have an answer for everything etc. But at the end of the day you're talking to a thief.

Write the money off that you lost and don't talk to people you haven't properly checked out.
 
Agree with M20J. They are trying to go through the "proper motions" in order that they build up your expectations. At the last minute they will require some money to complete the deal. Mark my words and do not give them any money.

Scunny2
 
gashpilot said:
I have 5,000 shares in General Components [GCPO] which is regarded as a boiler room stock. The company has changed its name to HiTech Wealth and China Mobile Media. I was therefore surprised and sceptical when I was called by someone representing Legg Berman Acquisitions management in Chicago offering to purchase @ $26.24 per share. The agreement they have sent does not appear to be asking for any further monies but I am not rushing to complete it. Has anyone had a similar approach or do they have any further info?
Click to expand...

I have just been approached by Legg Berman for a stock I have already been once scammed US$15,000 on. I have been very skeptical this time and, thanks to this site, have seen them as the scammers they are.

They began by saying that I would pay no money but now its $X to register the stock and have pointed me to a site www.regulation-s.net, telling me I can register them myself but that will take 6 weeks and I may miss out on this opportunity to make $100,000 because the buyer is in a rush to takeover the company.

This site helped explain regulation-S which means I shouldn't have to pay to register stock http://www.stock-watchers.com/regulation_s.html

Stay clear of legg berman.

J

Avoid, avoid, avoid.
 
Harry

Sorry but you've probably bought worthless stock.

Realise that you'll be called again and again over the coming years (before you fell for their tricks the first time) and each time they'll try to tempt the inbuilt greed we all have to get you to part with cash. They will spin very plausible reasons for you to invest and try to dangle 'big money' in front of you. But these will ALL be lies.

Hope this helps and please take on board what I and others say. Good luck but you won't need it if you're smart :)
 
anley said:
Harry

Sorry but you've probably bought worthless stock.

Realise that you'll be called again and again over the coming years (before you fell for their tricks the first time) and each time they'll try to tempt the inbuilt greed we all have to get you to part with cash. They will spin very plausible reasons for you to invest and try to dangle 'big money' in front of you. But these will ALL be lies.

Hope this helps and please take on board what I and others say. Good luck but you won't need it if you're smart :)
Click to expand...

Cheers - pretty stupid, huh?
 
Well, we've all done stupid things and lost money Harry so as long as the money was a reasonable amount take it on the chin and learn from your mistake. That makes you a stronger person and investor.

In future check here if you want to because some of us can smell an investment scam from a mile off. And as we don't have a financial interest you can trust us to offer impartial advice.

PS. As I said about be ready for them because they'll be calling you again and again, that you can be sure of.
 
Hi, just joined as been contacted by Strathclyde associates, trying to sell me stock in Advance Media Group, who they reckon have just signed a deal with Sony for 3D something or other, but yet to be announced ..... sounds like a scam to me, anyone ever heard of Starthcylde associates (based on Seoul) or Advance Media Group before?
 
pboyles said:
Kedward,

They are a confirmed scam, they are already on the FSA warning list. Unfortunately you can expect to receive more of these calls now that they have your number. Anyone who cold calls you selling shares is a scammer.


http://www.fsa.gov.uk/pages/Doing/Regulated/Law/Alerts/overseas.shtml
Click to expand...

Thanks pboyles. Am a firm believer in DYOR and was sceptical when I received these phone calls. Advance Media Solutions didn't seem to have enough data about itself out there, everything looked like it could have been planted, thankfully I found this site which will ensure I don't do anything stupid!
 
Hello,
You gave very good information. I know that Boiler room operations snare thousands of investors into buying expensive shares that turn out to be worthless and impossible to sell.

thanks!!
 
Last edited by a moderator:
SCAM ALERT ! SCAM ALERT !
Dont know if this has been mentioned on this thread yet but a lot of Boiler rooms are switching from pump and dump stoxx to "leveraged prescious metals" this is the scam invest 10 k in Gold/Silver/platinum and have it leveraged up to 40K buy the scam company , they then charge you 15% commission on the total value of 40K .......thats 6k then they charge you 3% for the spread thats another 1.2k bringing the total up to 7200 out of the 10,000 you have invested originally then they charge you 4.5% + libor on the 30k thats been leveraged , by the end of the year your initial 10k has been eaten away , you will be forced to close your gold position for a total loss of investment or asked to meet margin and deposit more funds which will be eaten up the following year again...........PLEASE WATCH OUT FOR THIS SCAM as its the new big thing for the boiler rooms and they have a pitch stating things such as stock market is dead/real estate is dead etc etc........BUT COMMODITIES have outperfomed the stock market by 200% 7 years on the trot, they pay for press releases on CNBC bLOOMBERG etc to give them credibility on ecompany to watch is empire wealth management, AKA Spyker metals AKA first national group. BEWARE this is the hot SCAM for 2010-2011.
 
Not quite a boiler room but still relevant. Some time back a company called Montague Pitman was doing the rounds of the trading shows offering their services as broker/advisors. They churned and burned quite a few accounts and then promptly went bust when the FSA started investigating them. It seems some of their employees then started up their own operation called Simply Trading Group.

To cut a long story short the FSA withdrew their authorisation and they ceased trading. Subsequently three of the directors Stephen Coles, Luke Ryan and Michael Yamoah were banned by the FSA who said they, "would pose a serious risk to consumers and to confidence in the financial system if they were to act as senior managers in an authorised firm."

They were also connected to a company called Hamilton Lloyd Capital

http://www.fsa.gov.uk/pubs/final/simply_trading.pdf

http://www.telegraph.co.uk/finance/markets/7914960/FSA-bans-Simply-Trading-senior-managers.html
 
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