Legal

Is a verbal telphone agreement to purchase shares legally binding?

terryronald4 said:

Is a verbal telphone agreement to purchase shares legally binding?

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I'm guessing you were cold called and agreed to buy shares. That is a very bad idea indeed, if this is the case then you have been dealing with criminals involved in a boiler room scam, their intention is to steal your money. In those circumstances its not legally binding.

Can you give us a bit more detail on the 'broker' and shares involved.

I don`t think that telephone agreement can be in any situation legal

It's a trick used more and more now by boiler rooms, all part of the scam.

If you're in the UK and the broker is UK regulated, then giving him an instruction that he exectured would be binding.

If he's outside the UK or operating without UK authorisation, then it can't be enforced.

ns1000 said:

If you're in the UK and the broker is UK regulated, then giving him an instruction that he exectured would be binding.

If he's outside the UK or operating without UK authorisation, then it can't be enforced.

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He posted a while back that he had been caught by a boiler room and was receiving more calls. I'm sure he's on the mugs list and these people he's referring to will all be boiler rooms.

Thank you for your replies. The dealer Hudson Asset Management is not authorised in the UK. One of the problems is, I purchased in my inocence some shares In Selva Resources some time ago now they tell me that a sell date as arrived but to qualify I need to purchase more shares!

Is a verbal telphone agreement to purchase shares legally binding?

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How can they prove who was on the other end of the call so I would very much doubt it.


Paul

terryronald4 said:

Thank you for your replies. The dealer Hudson Asset Management is not authorised in the UK. One of the problems is, I purchased in my inocence some shares In Selva Resources some time ago now they tell me that a sell date as arrived but to qualify I need to purchase more shares!

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Terry,

You have been scammed, do not in any circumstance give these people more money. You are never going to see a penny of it again. You are now being targeted by a 'recovery room' fraud which is the standard second part of the fraud. They are trying to get more money out of you by saying they can sell the shares for a high price or saying they can help you recover from the first scam by paying them a fee up front.

Its all complete lies and part of the scam. If you dont fall for it this time they will try again, they have even set up fake regulatory websites and pretended to be Federal Agents.

http://www.cityoflondon.police.uk/CityPolice/Departments/ECD/Fraud/boilerroom.htm

You are now on their mugs list and they will keep calling you using a different name and excuse every time. Selva Resources has been mentioned here before in relation to other boiler room scams. Whatever money you sent them initially is lost, you'll never see it again, dont add to your loss by falling for another scam.

terryronald4 said:

Thank you for your replies. The dealer Hudson Asset Management is not authorised in the UK. !

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Terry

Both Hudson Asset Management and Selva Resources are on the FSA warning list. That means that they have been illegally trying to sell shares in the UK. Its one thing to not be authorised its another thing altogether to have the FSA issue a warning. Remember they are criminals not brokers, forget about them enforcing anything legally.

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

Next time they call and say you have to buy because you entered into a legally binding verbal contract, tell them to F#@K off and take it up with the FSA ha ha.