Think I have made a mistake, need some advice

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OC2000

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Hi, I am new to the Stock investing world, and believe I have been caught up in a Pump and Dump scam.

I was approached by a S.Korean company who managed to convince me to buy into Greencell Tech, stating an announcement was due to be made within the next couple of months that would push the share price from 2.9 to 5.5. The pitch was extremely convincing and having no prior experience I decided to give it ago.

Ive noticed over the last couple of days the Share price (GT5:GR) has plumeted to 1.5.
I called them up to ask why this was happening and they assured me this was to be expected in day trading and try not to pay too much attention to it.

I ask advice on 2 things

1) Should I tell them to sell now, or wait and see if it levels out and rises a bit
2) What is likely to happen if I do sell and ask them to transfer the remaining money back to me?

Thanks for the advice in advance

Cheers
 
hi OC2000 and welcome to T2W (i'm a newbie too!)

whilst i cannot be conclusive, i work in financial services and often come across these "boiler room scams" and victims of them and its not a good story.

the usual approach is that you get a telephone call from a company out of the blue purporting to recommend you a company that will make you loads of money and aggressively market junk stocks to unaware investors.

in your situation, it has the charateristics of a boiler room scam and you can find a mention of this in this thread post #1904

http://www.trade2win.com/boards/brokerages/14154-boiler-room-scams-238.html#post1150578

it is illegal to cold call in the UK offering share investment opportunities and you are also afforded no protection under FSA.
tbh, i highly doubt that even if you wanted to sell the stock, it would be possible as often, junk shares are sold in restricted markets where the ability to trade the stock is limited or non existent due to lack of buyers/sellers.

one of 2 things could happen if you get them to sell:
1. they sell, and send you the proceeds
2. they try to cross sell you/convince you to hold/part with more money.

without further research into the firm(you didnt state the broker's name), i cannot be conclusive as to whether they are a legitimate business or not but alarm bells should ring if a company from korea calls you in the uk offering you fantastic returns as why would they need to convince you?

also, having market price sensitive information prior to official announcement is also deemed insider trading for which carries years in jail.

my mind is saying that it is option 2 that prevails from the information you've given but under NO circumstances part with anymore money until you are sure to the background of this korean brokerage. its so important, i'll repeat it again....DO NOT PART WITH ANYMORE MONEY UNTIL YOU ARE ABSOLUTELY SURE.

i've spoken to victims of these illegal operations and its not pretty.

hope that helps
 
OC2000 said:
Hi, I am new to the Stock investing world, and believe I have been caught up in a Pump and Dump scam.

I was approached by a S.Korean company who managed to convince me to buy into Greencell Tech, stating an announcement was due to be made within the next couple of months that would push the share price from 2.9 to 5.5. The pitch was extremely convincing and having no prior experience I decided to give it ago.

Ive noticed over the last couple of days the Share price (GT5:GR) has plumeted to 1.5.
I called them up to ask why this was happening and they assured me this was to be expected in day trading and try not to pay too much attention to it.

I ask advice on 2 things

1) Should I tell them to sell now, or wait and see if it levels out and rises a bit
2) What is likely to happen if I do sell and ask them to transfer the remaining money back to me?

Thanks for the advice in advance

Cheers
Click to expand...

You have been caught in a boiler room scam. There is an entire thread on T2W about this sort of thing. It is highly unlikely that you will get any money back, in fact the usual outcome will be that they will come up with a way to scam even more money from you.

Can I ask if you have actually verified your share holding. For instance how do you know that you were not sent fake certificates?
 
I should add that Greencell Technologies are a long running scam. If you google 'greencell technologies scam' you will see the amount of people who have been affected. There are also many posts on T2W about them as well. Just do some searching and you will see the extent of this.

Remember they will be calling you again under a different name trying to scam more money out of you. If you tell them to sell they will make some excuse to get more money out of you. They will tell you it is for tax or commission but they will just steal it and disappear.
 
Thanks all for your advice.

I will take the next steps with extreme caution, and prepare myself to walk away empty handed but at least a lesson learned and not falling any further for the "Recovery scam"

Cheers
 
Yep, been watching that, even called them when it was at 2.5 to ask what was happening and to discuss a contingency plan. This is when I discovered these forums as I began to panick

They told me not to pay attention to the chart and no contingency was needed as this was a sure winner and to just wait for the big announcement, which was due within the next 60 days.
 
OC2000 said:
Yep, been watching that, even called them when it was at 2.5 to ask what was happening and to discuss a contingency plan. This is when I discovered these forums as I began to panick

They told me not to pay attention to the chart and no contingency was needed as this was a sure winner and to just wait for the big announcement, which was due within the next 60 days.
Click to expand...

as i am currently working in financial services, i am qualified to say that nothing is a "sure winner" and anyone saying that to you is a farce and a disgrace. it gives financial services a bad name and you should cease to conduct any form of business relationship with them now or in the future.
 
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