Hi
This is what I have found further on the internet:
have had calls to pushing gcpo. gave my nat insurance no to confirm my deyails, now informed that i own the shares !!!. they want payment,loads of calls not going to pay. unsure of my rights any help greatfully recieved.
There are lots of points to consider here but TMF's Boiler Rooms FAQ is a good place to start:
http://boards.fool.co.uk/Message.asp?mid=9471244
1. Preston Wainwright Asset Management
www.pwasset.com are a boiler room, ie they are "An offshore unregulated financial organisation that uses high-pressure sales techniques to encourage UK private individuals to buy shares in high-risk companies.
2. General Components Inc (GCPO.OB) is for some reason relatively popular with boiler rooms, its stock is also being pushed by Goldfield Consultants AG
www.goldfield.ch, see:
http://boards.fool.co.uk/Message.asp?mid=9251048
A recent SEC filing for the company can be read here:
http://www.sec.gov/Archives/edgar/data/1160764/000114420405016705/v018815_10qsb.txt
And there's one particular comment of interest:
Additionally, in connection with the transactions contemplated by the
Exchange Agreement, the Company and certain investors (the "Investors"),
executed and delivered a Stock Purchase Agreement in which such Investors
received 10,000,000 shares of common stock of the Company for consideration of
$2,000,000.
Ie the company has recently issued a massive amount of stock to some "lucky" people at only 20 cents per share! A material discount to the price at which robinbro was being offered the stock at in the linked thread above, I bet that this is also a big discount to the price at which you're being offered them as well (some lucky person somewhere is going to "make out like bandits").
Personally I can't see any reason why anybody would want to buy stock in this pile of junk, but that is just my opinion.
3. The bottom line though is that you are well within your legal rights to tell these people to get lost. The explanatuion as to why is in the FAQ above:
5. I agreed to buy some shares but I've changed my mind now - the boiler room though say we have a contract!?
Don't worry, there's nothing that they can do. To force you to pay they would have to come to the UK and take action against you in a court and quite simply any court would throw out the case because any oral agreement that you have is "illegal", ie the boiler room cannot enforce it against you.
Section 26 of the FSMA explains this clearly:
www.hmso.gov.uk/acts/acts2000/00008--c.htm#26
26. - (1) An agreement made by a person in the course of carrying on a regulated activity in contravention of the general prohibition is unenforceable against the other party.
At a guess sharelord2 you've probably been very polite to these people so far and you're getting nowhere. You could get angry and shout at these people but that will only raise your blood pressure and that's not good for your health. Relax, laugh at them down the phone, tell them that you don't deal with illegal boiler rooms and hang up. If you find a more amusing way to tell them to get lost then please let us know.
