Restricted shares

This is a discussion on Restricted shares within the First Steps forums, part of the Reception category; Hello I am new to this site and to trading. My husband and I bought restricted shares 12 months ago ...

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Old May 16, 2008, 5:00pm   #1
 
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Restricted shares

Hello I am new to this site and to trading. My husband and I bought restricted shares 12 months ago and the restriction is now no longer valid. We keep receiving phone calls to sell these shares from a company who apparently took over from the original company that sold them to us. We have not parted with the certificate but really do not know where to go from here. I keep a track of the share value but do not know how or when to sell. I would appreciate advice on what to look for and what to avoid!

Thanks
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Old May 16, 2008, 5:43pm   #2
 
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Hopefully someone will answer your questions. It sounds like you got scammed by a boiler room and could be fleeced further. Perhaps you could speak to Money Box (Radio 4) or Working Lunch (BBC TV)?
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Old May 17, 2008, 7:18am   #3
 
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http://www.trade2win.com/boards/brok...tml#post434051
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Old May 17, 2008, 9:21am   #4
 
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Originally Posted by marypoppins View Post
Hello I am new to this site and to trading. My husband and I bought restricted shares 12 months ago and the restriction is now no longer valid. We keep receiving phone calls to sell these shares from a company who apparently took over from the original company that sold them to us. We have not parted with the certificate but really do not know where to go from here. I keep a track of the share value but do not know how or when to sell. I would appreciate advice on what to look for and what to avoid!

Thanks
By disclosing the name of who sold them to you and what company you have bought in I will be able to assist further. This information will not put you at risk to divulge.

Further info would help.

Date of purchase
ISIN
Current value or where traded (what market)
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Old May 17, 2008, 10:07am   #5
 
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marypoppins started this thread Hi Lee

We received a leaflet from United Utilities telling us about Anderson McCormack Group. We contacted them and bought 10800 shares in Green Machine Development Corp at 50 cents a share We received our certificate from Irvine Financial Intermediaries L.L.X who are based in Wilmington Delaware USA. I have been in contact with this company by email.
Since then we had a series of phone calls offering us 9$ a share for our shares! This was from a company called Masahiro International. Naturally we did not bite! Now we have phone calls from another set of people who claim to be from EIG? Yesterday it was a Joseph Clementine who phoned and they claim to have taken over from Anderson McCormack and are working to advise us on our shares and when the best time to sell is. I receive a regular email from Green Machine Dev. (which I set up myself) The present price is 2$ per share. The cerificate is dated June 16 2007 and appears genuine and I know the Green Machine Dev.Corp sold restricted shares at this time. The restriction is for 12 months. Question is, where do we go from here?
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Old May 17, 2008, 10:48am   #6
 
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Originally Posted by marypoppins View Post
Hi Lee

We received a leaflet from United Utilities telling us about Anderson McCormack Group. We contacted them and bought 10800 shares in Green Machine Development Corp at 50 cents a share We received our certificate from Irvine Financial Intermediaries L.L.X who are based in Wilmington Delaware USA. I have been in contact with this company by email.
Since then we had a series of phone calls offering us 9$ a share for our shares! This was from a company called Masahiro International. Naturally we did not bite! Now we have phone calls from another set of people who claim to be from EIG? Yesterday it was a Joseph Clementine who phoned and they claim to have taken over from Anderson McCormack and are working to advise us on our shares and when the best time to sell is. I receive a regular email from Green Machine Dev. (which I set up myself) The present price is 2$ per share. The cerificate is dated June 16 2007 and appears genuine and I know the Green Machine Dev.Corp sold restricted shares at this time. The restriction is for 12 months. Question is, where do we go from here?
It would seem that United Utilities are the primer for Anderson McCormack, this works in a simple way of giving comfort to victim because someone else has recommended them. Cannot find any credible info on them so I conclude there is a high possiblity that its the same people using a different name, this is common.

Anderson McCormack Group is an unregistered firm and investors have been previously warned by the FSA in August 2006, you'll find this link and others contained within to be useful now and in the future should you continue with this kind of extemely high risk investing - http://www.fsa.gov.uk/pages/Doing/Re...son_4aug06.pdf

The shares in Green Machine Developement have been suspended (from dec 28th 07)due to fraudulent activity in selling to foreign investors. The link here is from the Securities and Exchange Commission(SEC). http://www.sec.gov/litigation/suspen...34-56963-o.pdf

I would conclude by order of this information that the shares you are holding are not worth the paper they are printed on.

You ask where you go from here: More to the point is why have you declined the initial offering that has been made to you to buy them back at 18 times the value you paid?

I would suspect that for them to buy them off you at $9 a share would include some kind of fee or cost you a considerable amount more money.

It is easy to conclude with the above information is that you have been scammed into buying worthless (at the time) shares.

You should now be seeking help from official sources to see what they can do to help others. Unfortunately the chances of you getting any money back from these scammers is highly unlikely and being in different countries makes the legal process long, drawn out and expensive. Certainly not worth the £2.5k you have lost so far.

Hope this helps you and others to understand to do their due diligence before purchasing in a company from people we've never heard of.

Lee Shepherd
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Old May 17, 2008, 11:40am   #7
 
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marypoppins started this thread Hi Lee

Many thanks for replying. Yes we were asked to send more money to 'lift the restriction' so we declined.
The fact that this information came via United Utilies gave us the impression they were legitimate otherwise we would never have gone down this road.

We appreciate your taking the time to look into this for us.
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Old May 17, 2008, 11:53am   #8
 
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Hi Lee

Many thanks for replying. Yes we were asked to send more money to 'lift the restriction' so we declined.
The fact that this information came via United Utilies gave us the impression they were legitimate otherwise we would never have gone down this road.

We appreciate your taking the time to look into this for us.
Thank you for the appreciation, thats all I ever ask for.

Anything else I can help with just ask and keep trade2win.com updated with your progress (or not) to help others.
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Old May 17, 2008, 1:59pm   #9
 
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H
Many thanks for replying. Yes we were asked to send more money to 'lift the restriction' so we declined.
Aha! I wondered how they would make money by offering to give you money when buying back shares. I wonder how much you had to send them?
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Old May 17, 2008, 4:38pm   #10
 
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Aha! I wondered how they would make money by offering to give you money when buying back shares. I wonder how much you had to send them?
£2,500 approx! nice little earner don't you think? This was a Japanese company that offered to buy the shares. How they got our details I don't know. These traders are so heard-hearted, they don't care if they ruin you. I read of a man in his 90's and they robbed him of evertyhing!
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Old May 18, 2008, 12:30am   #11
 
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Some fee. Cheeky feckers. Just as well you asked on here.
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Old May 19, 2008, 4:34pm   #12
 
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marypoppins started this thread Hi Everyone

Just to let you know our progress. I decided that the only way forward was to find out once and for all if the shares were genuine so I emailed the Green Machine Dev. Corp. and asked them how I could do this. The company admin staff took our details and this morning verified that we are indeed shoreholders. The shares are genuine. The phonies are the people who keep trying to 'buy' them from us. I have now asked them the rules on the restriction that was put on these shares when we bought them and await their reply. I will keep you posted.
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Old May 19, 2008, 5:40pm   #13
 
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Well, that is a relief in a way. Keep us posted.
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Old May 21, 2008, 9:45am   #14
 
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marypoppins started this thread Dear Madam,



Hi

This is the reply from my email to Green Machine about restrictions.


The Company’s permission is not required. Reg S shares may be traded at any time to any person (or corporation) who is not a US citizen or resident of the US .

I have to say, Green Machine have been straightforward and helpful when I have asked them questions which is reassuring. I now feel much clearer about what I am dealing with.

Next question, selling these shares, what is the best way of selling them when we want to sell them? Advice would be appreciated. Also what is the usual rate of commission?
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Old May 21, 2008, 10:07am   #15
 
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Originally Posted by marypoppins View Post
Dear Madam,



Hi

This is the reply from my email to Green Machine about restrictions.


The Company’s permission is not required. Reg S shares may be traded at any time to any person (or corporation) who is not a US citizen or resident of the US .

I have to say, Green Machine have been straightforward and helpful when I have asked them questions which is reassuring. I now feel much clearer about what I am dealing with.

Next question, selling these shares, what is the best way of selling them when we want to sell them? Advice would be appreciated. Also what is the usual rate of commission?
This is very correct when it comes to them being sold to you, selling them on is where the fun starts. Contact Green Machine and see what they can advise. Due to them being Reg s shares you may not be able to sell them on until the year is up.

It would seem a good idea to get rid of this investment and put the money into something safer and something that your more sure of. This is typical high risk low return, preferably you want either high risk, high return or low risk, low return depending on your risk appetite and how much you can afford to lose, although I assume they sold these to you under the title of low risk high return.
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