Boiler Room Scams

[AlexGreen]

I don´t agree with these people who say that EVERYONE WHO CALLS IS TRYING TO SCAM YOU. Some of these people say don´t do business with anyone you dont know. What does that even mean, only do business with your Mom??

It's a probability thing Exp. Basically if 100 people cold call you about investing in the stockmarket it's odd-on they want to use your money to make themselves money first and then you second. Of course, if they're scammers then all they want to do is steal your cash.

Also, the other main point throughout this thread is do your own independent due diligence. So yes, by all means deal with a company you don't INITIALLY know but then investigate them to find out far more details. Do that and you might find they are legit and it's worth doing business.

 

[vivacook]

Hi, new to the foumbut I read with interest.

I recently filled in a internet site questionairre and was contacted by the broker.
He gave me knowledge of a penny share company (legit company) and said the shares will rise steadily for 3 months and should make 30% profit.
I was intrigued obviously. Did my homework (as much as possible anyway) the company offering the advise was on the FSA list, they had been in business for 6 years.
I decided to take a gamble and buy some of these shares, sending a swift transfer to a Hong Kong bank.
The shares are rising gradually as reported and are making a nice profit.
The company now contact me regularly to invest more in other shares, some of which have made a very healthy profit, I have explained I would like to see my money returned (with profit) before doing any other business. They have now stopped calling.
I have a number tocontact these guys and always seem to get through but I am now very worried after reading this forum.

The company selling the shares are called Mitschka advisory and are based in Vienna with a office in London apparently.
Has anyone dealt with these or could give me advise of what happens when I tell them to sell?

Regards

 

[AlexGreen]

Viva

Sorry but I would think you've been scammed because you sent money to Hong Kong. In future only deal with UK based regulated brokers where their bank accounts are located in London and with the same name as the broker. So if the Broker is called 'Simmons Stockbrokers' the bank account at Lloyds, Baker Street will be called 'Simmons Stockbrokers'.

Chances are you sent money to a differently named company in Hong, ie it wasn't called Mitschka Advisory and that normally always means you're dealing with a boiler room.

Sorry to be the bearer of bad news. Also, watch out in the future because these scammers will be calling you again trying to get more money off you. Chances are they'll say you can sell the shares for a massive profit but first you'll have to deposit some more money to get the shares derestricted or pay lawyers fees etc. But pay that money and it will again be stolen.

 

[experienced_it_all]

It's a probability thing Exp. Basically if 100 people cold call you about investing in the stockmarket it's odd-on they want to use your money to make themselves money first and then you second. Of course, if they're scammers then all they want to do is steal your cash.

Also, the other main point throughout this thread is do your own independent due diligence. So yes, by all means deal with a company you don't INITIALLY know but then investigate them to find out far more details. Do that and you might find they are legit and it's worth doing business.

Yeah, I agree totally. From the experiences on here I would agree that most people should not do business with anyone that calls them. I think most people don´t understand HOW to research a company and do proper due diligence, which is the main problem. It just irks me a bit when someone who has been scammed starts in with the whole "Only do business with people you know, everyone else is a scammer..." rather than try and educate themselves.

It is just a personal thing for me and no one should invest in anything unless they have a full understanding of the investment and the risks involved. On the other hand, I am not Carl Ichan so I have to network and this means contacting people I DON´T know. Networking is a huge part of being successful. God willing, someday I won´t have to contact anybody I don´t know and I will be in a position to fund all my own projects, but until then I will keep making those contacts.

I would have to agree for most people on here, it is probably good advice to just politely decline and hang up the phone.

 

[experienced_it_all]

Hi, new to the foumbut I read with interest.

I recently filled in a internet site questionairre and was contacted by the broker.
He gave me knowledge of a penny share company (legit company) and said the shares will rise steadily for 3 months and should make 30% profit.
I was intrigued obviously. Did my homework (as much as possible anyway) the company offering the advise was on the FSA list, they had been in business for 6 years.
I decided to take a gamble and buy some of these shares, sending a swift transfer to a Hong Kong bank.
The shares are rising gradually as reported and are making a nice profit.
The company now contact me regularly to invest more in other shares, some of which have made a very healthy profit, I have explained I would like to see my money returned (with profit) before doing any other business. They have now stopped calling.
I have a number tocontact these guys and always seem to get through but I am now very worried after reading this forum.

The company selling the shares are called Mitschka advisory and are based in Vienna with a office in London apparently.
Has anyone dealt with these or could give me advise of what happens when I tell them to sell?

Regards

I am going to start a DUE DILIGENCE service. I have been thinking about this for a while and I think 50 Euros to do proper due diligence on these companies could save people millions overall.

This is an example of not understanding how to do proper due diligence on these companies (not at all a poke at you personally Viva, I see you listed your due diligence and it is "book smart" research, but these guys are snakes so you have to look where they are hiding).

Mitschka Alternative Advisory (1st red-flag, no company ending - Ltd., PLC, etc.)

Domain Name: MITSCHKA-ADVISORY.COM
Created on: 09-Jul-09 (2nd red-flag, company site created just a few months ago.)

Administrative Contact:
Private, Registration (3rd red-flag, company does not list any administrative contacts, pays to keep this info. private.)

No FSA registration (4th red-flag, this could be a big one but not all companies are U.K.)

It took me about 2 minutes to decide that this company is a scam.

Viva, you said the company "offering the advice" is registered by the FSA, I am assuming that you were referring to the company your shares are in, is that correct? (Only because I didn´t find Mitschka on the FSA list.)

In most of these cases, the company of the shares that are sold (company on the share cert.) is "legit", registered, in compliance, etc. The "Advisor/Broker" is who usually has no regulation and will disappear. Then you are left with share certs. in a company who is listed on an exchange, but no legit broker will touch the shares (ex. They will be on Ameritrade´s "no trade list").

Again, Viva, this is not personal towards you. I have had a formal education in finance, Series 7 training and license, 15 years work experience and it was only in the last few years when I was living in Europe that I had ever heard of these scams. It can be complicated to understand how the companies can be "legal" and "regulated" but "scams" at the same time. It´s LOOPHOLES, people abuse the system. Regulators try to make exceptions for companies who will use the system correctly but there will always be people with out scruples who are out for their own good. Happens in any system.

Viva, you should list the company/exchange that you invested in as well. I am sure there are several "Advisors" that are pushing the same stock.

Would you have been happy to pay 50 Euro for that info.? (I ask seriously because although I am sure it would save a lot of money in hind-sight, I think people would be pissed at me if I charged them 50 Euro for a small amount of info. that they could get themselves off the internet.)

 

[vivacook]

Hi Experienced it all.

Feeling very foolish at moment.

In answer to your question, the company offering advice is Mitschka.

They gave me a Reference number for FSA (445272).

The share company is Sterling Energy.

Could you explain what u mean by (Ameritrade´s "no trade list")?

Thanks for this.

 

[AlexGreen]

Viva

Also learn not to trust people until they've proven themselves especially those who tell you they can make you money.

Just because someone says they're registered by the FSA or have Goldman Sachs as investors doesn't mean it's true. Sure, they might be telling you the truth but learn to verify the facts yourself using independent research.

And where to do that, the internet is your best friend. Sure, some of the info is useless and wrong but keep digging and you'll find relevant information.

And as I said before watch yourself in future because the scammers (using different names of course) will almost certainly target you again. If in doubt ask your questions here and we should be able to give you good advice, not to make money but not to lose it.

 

[zerotaxhack]

hey all, first time posting here....the topic caught my eye so stopped to drop my two cents! I've bought stock from a company that used to be called Mendes Prior Europe, they had MENDES PRIOR ASIA also....anyway bought some crap called renaissance something or other. bought 500 shares@ US$5...price never ****ing moved in 6 months...told them to sell...then the nightmare started...there was always some sort of excuse, broker not in, re-pitch...and so on...well, long story short never got my money back they vanished and that was that...now, that was my fault, I was fresh outta college wanting to make some dolls in the markets .com era boom and that!! if you have been approached by a no-name company (they all got great names, dont they?) check into it as much as you can keep asking for info on them. check the stock through other brokers i.e well non company.

IF IT'S TOO GOOD TO BE TRUE.......there you go!!!!

"When you see black rivers of iron flood round the city walls like the surging waves of the seas, then you can say.......Charlemagne is arriving."

 

[sqawky123]

Yeah, I agree totally. From the experiences on here I would agree that most people should not do business with anyone that calls them. I think most people don´t understand HOW to research a company and do proper due diligence, which is the main problem. It just irks me a bit when someone who has been scammed starts in with the whole "Only do business with people you know, everyone else is a scammer..." rather than try and educate themselves.

I would have to agree for most people on here, it is probably good advice to just politely decline and hang up the phone.

I agree. But if you do the due diligence research, than you would know them. If any of the research leads to an empty past, a red flag should come up. Be careful of the domain registration date, the scammers are now registering domains that they plan to use in two to four years. If you google the company you are researching and you receive a lot of misc BS in the google search, ie; stories that go nowhere, music, arts, etc, than don't even question it, its a scam and they are covering a past of scamming. They will try to use the same company domain that they used to scam in 2004 or earlier, just to get around your due diligence research of recent domain registration.

These moron perverts are used to lying all of their life, so they have no conscience. They contribute nothing to this world so their greed can justify why they should steal your money.

 

[raysor]

How many people did you know before you met them? How many companies were you aware of before you were introduced to them in some way?

Or do you just stick with the big names like Enron/Lehman Bros./Madoff and play it safe?

Not to be a smart ass, but you´re trying to be snide with those questions and you´re probably not that smart.

I know of a University with a well-known business school and they used Enron as a prime example of how to invest safely in blue-chip stocks.... how did that work out for everyone?

These people who get taken by con-artist are not stupid, they are usually just a bit too trusting and do not understand how to do proper due diligence. If you do not know the markets and I tell you that XYZ.PK company trades on the same market as Nestle, this might seem like a legitimate reason to believe that this is a viable company and market.

I don't think that previous post was snide and whether the poster is smart or not is irrelevent. It just happens to be the obvious question. Why? Well we know why: greed, fear of offending the person calling (yes I've known people who have disconnected their 'phone in the day to avoid talking to share pushers!), bit of green round the ears etc.
I receive hundreds of calls from US trying to push scam investments. Rightly or wrongly I say "I would love to invest but being a stockbroker myself my compliance people wouldn't allow it". Reply " you're a s-t-o-c-k-b-r-o-k-e-r???" -pause- "who with?". Give them the name and pause while they check internet for company: "Ahhh, yes, xyz stockbrokers, England,,hum...well you have a nice day!"

 

[raysor]

Is anyone in this situation. It is what I refer to as "legal scams" but if anyone has a solution or experience I would appreciate any suggestions.

I have share certificates that have no restrictions (confirmed by the transfer agent) with a company that trades on the Pink Sheets (Grey Market).

The Company is in "good" standing (as far as the pink sheets do not have any reporting requirements) and there is very little volume.

The Transfer Agent is in good standing and has filed with the SEC as recently as Sept. ´09.

But I have not found a Broker who will trade the shares.


So the Company can legally sell "listed and free-trading" shares on the Pink Sheets, the Transfer Agent can legally accept money and give their SEC registration number (all this is good with the SEC) - but there is no way of actually selling the shares???

So what good is an SEC registration? (except for giving the appearance that you could trust doing business with this company that is obviously involved in the scam)

The solution is to make sure you can sell it before you buy it. If you are not sure ask your (experienced) broker. If he doesn't know, don't buy it!
Don't deal in something you don't understand. I have been broking for 40 years and I asked someone the other day what was the difference between Pink Sheets and Bulletin Board. I still don't know and don't really care (I know what the similarities are!).
I note you say "listed". I would say "listed" means "listed with a recognised Stock Exchange" which these are definitely not. One says "listed" on AIM which is, presumably, incorrect(??)
The Restricted share scene is for professionals(US) so if you are Joe from Surbiton don't touch them with a bargepole. Unfortumately some investors only find out after they have parted with their cash.
Life is a learning curve and you learn from your mistakes but why make such expensive mistakes?

 

[vivacook]

But then how do you find a true broker...anyone can do buiness with registration numbers etc etc but can still be a crook.

I did as much research as I knew how before succumbing to this deal, but I am stilllft not actually knowing.

Whats the next step...should I ask for the shares tobe sold and report the action?

What next anyone...I guess I cant bluff back and say "if you sell my shares and return my money so I know you are honest, then I will be back with a large amount"? What do u think?

 

[AlexGreen]

But then how do you find a true broker...anyone can do buiness with registration numbers etc etc but can still be a crook.

True, but they can't dissappear and steal your money. But what it does prove is if you don't really know what you're doing stay away from the stockmarket and any other type of investment.

 

[AlexGreen]

Be careful of the domain registration date, the scammers are now registering domains that they plan to use in two to four years.

Yes, but what they won't be able to do is fake their link profile. Use this Google search -

link:thedomainname.com

It will pull up who's linking to them and chances are you'll either see nobody or a load of crappy ezine.com type articles or fake press releases and that will be a massive red flag.

Now, type in the same of a legit broker and see how many other legit websites link to them, a lot because legit brokers get good links.

However, at the end of the day this probably won't matter as most investors are hooked on the easy money they've been (almost) promised and so will invest anyway.

 

[pboyles]

But then how do you find a true broker...anyone can do buiness with registration numbers etc etc but can still be a crook.

I did as much research as I knew how before succumbing to this deal, but I am stilllft not actually knowing.

Whats the next step...should I ask for the shares tobe sold and report the action?

What next anyone...I guess I cant bluff back and say "if you sell my shares and return my money so I know you are honest, then I will be back with a large amount"? What do u think?

Bear in mind that these criminals monitor sites like T2W and have posted here recently under multiple names from the same IP address. It might be better not to disclose you tactics publicly.

 

[sqawky123]

Bear in mind that these criminals monitor sites like T2W and have posted here recently under multiple names from the same IP address. It might be better not to disclose you tactics publicly.

Of course, this site is full of scammers. That is how they receive their contacts and game plan, they innocently ask you and you send them your email to start. Yes, they use the same IP address or one of the numbers in the next series in the group of the same IP address. That is what a boiler room is, many computers. I think the more people are aware, the better.

It is good to see some of the recent postings with good advise-"Know who you are dealing with." Know their personal details. Do they work for a legitimate company? etc.. Do not deal with anyone you don't know.

To the boiler room operators, you guys are losers. You have never been good at business except bankrupting them. You were quitters in real life and never did finish anything. That is why boiler room operating appeals to you. You take the money and run. You are a waste to society and have never contributed to this world in any way.

 

[raysor]

But then how do you find a true broker...anyone can do buiness with registration numbers etc etc but can still be a crook.

I did as much research as I knew how before succumbing to this deal, but I am stilllft not actually knowing.

Whats the next step...should I ask for the shares tobe sold and report the action?

What next anyone...I guess I cant bluff back and say "if you sell my shares and return my money so I know you are honest, then I will be back with a large amount"? What do u think?

Which country are you in?
Here's one way to deduce if it's legit or not: Assume initially that it isn;t. Then try and prove that it is.

 

[raysor]

Hi Experienced it all.

Feeling very foolish at moment.

In answer to your question, the company offering advice is Mitschka.

They gave me a Reference number for FSA (445272).

The share company is Sterling Energy.

Could you explain what u mean by (Ameritrade´s "no trade list")?

Thanks for this.

From FSA register
Wirtscaftsberatung Invest Alternative Mitschka Ltd & Co KEG : EEA Authorised

Wirtscaftsberatung Invest Alternative Mitschka Ltd & Co KEG: No longer authorised
Sterling Energy is on the AIM (Alternative Investment Market.
Conclusion: DONT deal with Mitchka.
Buy Sterling Energy (if it suits ) through ANY authorised broker.
Not very difficult!

 

[vivacook]

But could Mischka be part of Wirtscaftsberatung Invest Alternative Mitschka Ltd & Co KEG.Both head offices are in Austria Wien?

 

[raysor]

But could Mischka be part of Wirtscaftsberatung Invest Alternative Mitschka Ltd & Co KEG.Both head offices are in Austria Wien?

Why not?