Boiler Room Scams

[experienced_it_all]

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?

I agree totally. The shares aren´t actually mine, I just put up the post as a real life example.

Surprisingly I have never had anyone call me to sell me any shares in these types of companies, but I have clients that I have worked with for several years who get tons of calls and ask me to check it out for them. When I call (if anyone answers, and mostly get a voice mail or "receptionist" i.e. Regus or other virtual service) as soon as I tell them that I am a broker or ask even a simple SEC registration question, they get off the phone quickly and disappear.

 

[experienced_it_all]

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.

Viva,

I really don´t think you should feel foolish. You´re not the first or last it will happen to.

I think Mitschka took this a step further and gave you an FSA registration number that corresponds to another company with a similar name. I think Mitschka Alternative Advisory (Advisory company information on trading, forex brokers, advisory stockbroker, stockbrokering, trading, share dealing) and Wirtscaftsberatung Invest Alternative Mitschka LTD & Co KEG are not the same companies at all. Different name, different listed address. I would bet that Mitschka Alternative Advisory is not a company, just a web site.

As far as "no trade lists" go, brokerages will not deal with many stocks on the Pink Sheets (especially Grey Market). If you go to Pinksheets.com and look under OTC Guide-> How to Buy or Sell Pink Sheet Stocks, you will see that they list Ameritrade, Scottrade, Fidelity. If you buy the stock through the brokerage online, you will be able to sell it as well (assuming there is volume). If you buy a share certificate (physical paper document) direct from the company, these brokers may not deal with that particular company.

Ex. For NNTH.PK (Nanotech Industries, Inc.) I have gotten the following replies;

E-Trade Financial - Unfortunately we do not deal in Pink Sheet stocks. Sorry we can not assist you.

Scottrade - NNTH is currently on our no buy/no sell list. Unfortunately we would not be able to help facilitate selling this security for you.

TD Ameritrade - In speaking with our safekeeping department, it was advised that it is almost a certainty that we would reject this security for deposit with TD Ameritrade because it is in the grey market.

Only Fidelity gave me a postive response - You can deposit pink sheet or OTC stock certificates into a Fidelity account. Before you can trade them, you will need to contact a representative by phone so we can make sure you understand the risks involved with trading penny stocks. After that discussion, we will approve your account for trading penny stocks.

But even Fidelity can´t trade a stock with 0 volume.

This is one of the loopholes (for the company selling you the stock) or Catch 22 (for the purchaser). They can sell the stock legally because if one day the company moves to a more viable market, the shares can be sold easily. The problem is that most of the companies sold through boiler rooms do not ever plan on moving to another exchange.

Then if your stocks have a Restriction, it is a whole other headache and they will make it difficult or impossible to lift the restriction (or at least until they dilute the stock until the share value is less than the cost of lifting the restriction).

I don´t think anyone that falls for these scams should feel foolish or ashamed, it is difficult to understand why the methods are "legal", stocks are listed, companies are registered, etc. If you get fooled several times, then you might want to feel foolish but even then I have seen some pretty elaborate stories.

Also, psychology plays a big role, once people lose, they will do just about anything to get the money back and they will talk themselves into believing the stories they are told. It is the same as people who gamble a lot - the low will feel much worse if they lose $100 than the high will feel if they win $100. Go to the casino and see how many times you hear the words "recoup my losses".

The best thing you can do is learn from your mistake and get away from it. If you start "chasing" your investment and throw more good money after bad money, you will really dig yourself into a hole you can´t get out of.

 

[experienced_it_all]

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?

Again, I agree 100% and I would put an emphasis on "Don't deal in something you don't understand."

Good Pink Sheet Stocks;

NSRGY — Nestle S.A. $46.51 850,550 Pink Quote American Depository Receipts Switzerland

AFLYY — Air France-KLM Last Sale 17.05 Volume 2,676

Very Bad Pink Sheet Stock;

RRGI — Reality Racing, Inc.
Common Stock
Par Value: 0.001

QuoteNewsChartsCompany InfoFilingsResearchShort InterestInsider Trans.Pink OTC Markets has discontinued the display of quotes on pinksheets.com for this security because it has been labeled Caveat Emptor (Buyer Beware) and because adequate current information has not been made available by the issuer of the securities. It has been labeled Caveat Emptor for one of the following reasons:
•Questionable Promotion — The security is being promoted to the public, but adequate current information about the issuer has not been made available to the public.
•Spam — The security is the subject of spam promotion having the effect of encouraging trading of the issuer's securities.
•Investigation of Fraud — There is a known investigation of fraudulent activity involving the company, its securities or insiders.
•Suspension/Halt — A Regulatory Authority has halted or suspended trading for public interest concerns (i.e. not a news or earning halt).
•Disruptive Corporate Actions — The security or issuer is the subject of corporate actions, such as reverse mergers or serial stocks splits and name changes, without adequate current information being publicly available.
•Unsolicited Quotes — The security has only been quoted on an unsolicited basis since it entered the public markets and the issuer has not made adequate current information available to the public.
•Other Public Interest Concern — There is, in Pink OTC Markets' view, a public interest concern.

And then there is Pricing;

MMID — Market maker quotation published in Pink Quote that meets the Inside market
MMID — Market maker quotation published in Pink Quote
cMMID — Closed quote
U — Unpriced quote in Pink Quote
MMIDu — Unsolicited market maker quotation published in Pink Quote

So if you don´t understand the difference, it is best to not get involed.:smart:

 

[raysor]

As you say this is a minefield. I have been trading Restricted stocks for over 10 years and I wouldn't say I know all about it. One I can remember vividly was a stock called Yellowbubble.com (good name, eh?). Also I have sold (accidently) a restricted stock. I hade several calls early the next morning from a chap in the States saying I would be buried in writs for trading it. After several unnerving 'phone calls comprised mainly of exlpletives he finally said to me "have you got any more stock?". I said "I thought you can't trade restricted stock". He replied "Ah, there are ways and means"

 

[easynow]

this has been very helpfull

 

[everyonerich]

-

Message From Miss Sarafine Konu
Abidjan,Economic Capital Of Ivory Coast.
APPEAL FOR BUSINESS ASSISTANCE

Hello dear lovely one,

Permit me to inform you of my desire of going into business relationship with you. I contacted you after going through your profile,I prayed over it and selected your name among other names due to its esteeming nature and the recommendations given to me as a reputable and trust worthy person that I can do business with and by the recommendation , I must not hesitate to confide in you for this simple and sincere business .

I am Miss Sarafine Konu the only duagther of late Mr. and Mrs.Joseph Konu. My father was a very wealthy cocoa merchant in Abidjan , the economic capital of Ivory coast, my father was poisoned to death by his business associates on one of their outings on a business trip . My mother died when I was a baby and since then my father took me so special. Before the death of my late beloved father last year in a private hospital here in Abidjan he secretly called me on his bed side and told me that he has the sum of Ten million,five hundred thousand United State Dollars. USD ($10,500,000.00) left in fixed / suspense account in one of the prime bank here in Abidjan ,that he used my name as his only daugther for the next of Kin in depositing of the fund. He also explained to me that it was because of this wealth that he was poisoned by his business ssociates That I should seek for a foreign partner in a country of my choice where i will transfer this money and use it for investment purpose such as real estate management or hotel management .

Dear, I am honourably seeking your assistance in the following ways:

(1) To provide a bank account into which this money would be transferred to .

(2) To serve as a guardian of this fund since I am only 22years.

(3) To make arrangement for me to come over to your country to further my education and to secure a resident permit in your country.

Moreover, Dear, i am willing to offer you 15% of the total sum as compensation for your effort/ input after the successful transfer of this fund into your nominated account overseas. Furthermore, you indicate your options towards assisting me as I believe that this transaction would be concluded within four (4) days you signify interest to assist me. Anticipating to hear from you soonest.

Thank's and remain bless.

Yours Faithfully,
Sarafine Konu.

 

[sqawky123]

This sounds like this comes from the other boiler room from across the street. They do the Nigerian type scams over there in the morning, then do the fake lottery tickets in the afternoon. In between this, they sell stocks for Colgaite. Reading the first paragraph, you know its a scam. When someone opens any business deal with prays and end with bless, this is to put trust into you with them. The run-on sentence in the first paragraph is another giveaway.

Please don't let them off the hook so easy. Reply back to them and see if you can scam them. Make sure you have a good antivirus program.

I used to get a ton of these with my uncle dying, and I deleted them. Once I started asking where I should send the flowers to, and if my uncle was a good man, etc, etc., they stopped sending me these emails. Have some fun and see if you can rattle their chains a little. They get really pi__ed once they realize your playing with them. I did have some good laughs.

 

[Aggie]

Has anyone recently heard anything about Priority Venture Management and their connection with U.S.Securities Bureau. whose address is 1650 Market Street Philladelphia PA 19103 phone number
+1(215) 279-5869.email address [email protected] looking for a speedy reply.

 

[pboyles]

The Swedes seem to have heard of them and have listed them as a scam, its the first result on Google when you search for Priority Venture Management

http://www.fi.se/Templates/Page____9386.aspx

 

[Aggie]

this U.S.Securities Bureau whose address is 1650 Market Street Philladelphia PA Phone Number
+1 (215) 279-5869 is this a scam address making a comback as Priority Venture Mgt . PVM have been a scam since 2007 its this new address that is suspect

 

[awcx]

Morris Comodities Hong Kong

Have recently been through the process of checking out this operation who were pestering me last week to buy GOLD OPTIONS. Their website and approach are very smooth but lacking in substance so do not become involved with them

Have been in touch with ASIC here in Australia and they are now aware of their similarity with the VITOL scam previously dicussed in this forum and are in their own process of investigating.

Please note if any one from this operation contacts you probably the best way to head them off is to demand a proper securities licence number for you to independantly check but definately not one originating from Hong Kong

 

[lankycelt]

Thanks for the warning about MITSCHKA-ADVISORY. I have had several calls from a Bruce Cameron who has been encouraging me to invest in the next big oil share. He is due to call back tomorrow with the name and to take my order. Needless to say he will be told where to go.
I have also had calls from a James Fuller at PLATINUMca-ag based in Zurich. Does anyone have experience of them? I am suspicious that this is a scam also.

 

[experienced_it_all]

Thanks for the warning about MITSCHKA-ADVISORY. I have had several calls from a Bruce Cameron who has been encouraging me to invest in the next big oil share. He is due to call back tomorrow with the name and to take my order. Needless to say he will be told where to go.
I have also had calls from a James Fuller at PLATINUMca-ag based in Zurich. Does anyone have experience of them? I am suspicious that this is a scam also.

PLATINUMca-ag based in Zurich is a scam. I am not familiar with the company, but the fact that they have "Copyright 2008..." on their website which was only created in Aug. ´09 tells me this company is b.s.

 

[Gold31]

Calvin anderson & Associates, Zurich

Could I enquire if any of you have come across

Calvin Anderson & Associates - Bonhofestrasse 33, 8010 Zurich.[/COLOR]
Christopher Murray, Managing Director,
Fraser Mc Namara : Senior Vice President of Accounts
Albert Perry : Senior Manager Compliance Dept - Witness to Murrays signature !

They are offering a huge return to trade some of those notorious USA REGULATION S shares. These were unloaded onto the European market a few years ago by quasi licenced outfits that used the same tactics and strategy as 'boiler rooms' . Many victims of the scam found the shares were UNTRADEABLE .
The summary of Stock Purchase Agreement .....
Equit Transfer Charge.........$0.06
Equity t/f charge due .........$6000
Gross Proceeds of Sale........$296,000
Deductible Commission.......($4400)
Refundable Equity t/f charge $6000
Net Sale Proceeds..............$297560

Quite impressive b....s....

Can they be located on a Company Register AND or the Fincial Regulators records ?
Nothing on their stationery to say so.

 

[kenmar 1952]

Could I enquire if any of you have come across

Calvin Anderson & Associates - Bonhofestrasse 33, 8010 Zurich.[/COLOR]
Christopher Murray, Managing Director,
Fraser Mc Namara : Senior Vice President of Accounts
Albert Perry : Senior Manager Compliance Dept - Witness to Murrays signature !

They are offering a huge return to trade some of those notorious USA REGULATION S shares. These were unloaded onto the European market a few years ago by quasi licenced outfits that used the same tactics and strategy as 'boiler rooms' . Many victims of the scam found the shares were UNTRADEABLE .
The summary of Stock Purchase Agreement .....
Equit Transfer Charge.........$0.06
Equity t/f charge due .........$6000
Gross Proceeds of Sale........$296,000
Deductible Commission.......($4400)
Refundable Equity t/f charge $6000
Net Sale Proceeds..............$297560

Quite impressive b....s....

Can they be located on a Company Register AND or the Fincial Regulators records ?
Nothing on their stationery to say so.

I assume the $6000 has to be paid in advance? And is fully refundable on completion of the sale? Obviously the sale will not go through and the $6000 will not be refunded. There will be some reason, possibly warrants attached to your shares, to justify them asking for more money to complete the derestriction of the shares. They can not be traded until they are derestricted. I assume you are aware of this, if not check out my previous posts re derestriction of reg. s shares.
The best you can do is get all the details, tell them you will go ahead, and then when they send you the full banking details forward all the info you have to [email protected] and [email protected]. That's what I do.
I looked for this company on google with no success.
As a matter of interest what shares were they offering to trade?
Good luck and good hunting.

 

[kenmar 1952]

Thanks for the warning about MITSCHKA-ADVISORY. I have had several calls from a Bruce Cameron who has been encouraging me to invest in the next big oil share. He is due to call back tomorrow with the name and to take my order. Needless to say he will be told where to go.
I have also had calls from a James Fuller at PLATINUMca-ag based in Zurich. Does anyone have experience of them? I am suspicious that this is a scam also.

Get all the info you can, tell them you will go ahead with a small investment to test the water, to send you everything by e-mail so you can review it in black & white, hopefully they will include banking details, and then forward everything to [email protected] and [email protected].

 

[Gold31]

Calvin anderson & associates - ? Zurich

Kenmar

Many thanks - Share Angel Citi AGCI - (it was OTC - Reg S and did a lot of contortions
morphed to Midas (MDAS) then Textecnology (TXTG) & We R U (WERU). 50000
AGCI when changed to MDAS were reduced to 500 ! They are all according to
Bloomberg at almost zero !

 

[Whichypoohs]

Mitschka Alternative Advisory ????? Threats to our family

My dad received emails from Money and Markets from the USA, other emails came and he clicked a link, was then harassed by phone calls from a company known as: mitschka-advisory.com.

My dad was hounded and bought £2k worth of share in Gold. (Oxus Gold PLC)

Another company involved are: guardmanescrow.com in Harley Street London?

Mitschka Alternative Advisory are based at 27 Old Gloucester Street London (on doing a search there is a Physic Hotline registered at this address.

When I phoned Guardmann Escrow in Harley Street my call sounded like it went to the other side of the world; person on the other end spoke very poor/negigible English.

On phoning Mitschka Alternative Advisory I had the phone put down on me, they wouldn't give their address. I was bombarded with silent phone calls: I was screamed at down the phone and told to F*** off. The guy from Mitschka also threatened to take my little dog, and threatened to get my son: his words were, "we are going to get ****"". The silent calls continued as did the abuse.

The guy at Mitschka Aletnative Advisory has been calling my fathers home a few times a day, they leave the phone ringing for about 10 mintutes. They want my dad to buy shares in Sainsbury PLC, he's said he has no money but they keep on.

We don't know what to do now. I know they are a scam but Old Age Pensioners were bought up in a time of trust, where you word was your bond, so they don't understand the scum involved here.

Any advice/updates would be most welcome. Many thanks folks.

 

[pboyles]

My dad received emails from Money and Markets from the USA, other emails came and he clicked a link, was then harassed by phone calls from a company known as: mitschka-advisory.com.

My dad was hounded and bought £2k worth of share in Gold. (Oxus Gold PLC)

Another company involved are: guardmanescrow.com in Harley Street London?

Mitschka Alternative Advisory are based at 27 Old Gloucester Street London (on doing a search there is a Physic Hotline registered at this address.

When I phoned Guardmann Escrow in Harley Street my call sounded like it went to the other side of the world; person on the other end spoke very poor/negigible English.

On phoning Mitschka Alternative Advisory I had the phone put down on me, they wouldn't give their address. I was bombarded with silent phone calls: I was screamed at down the phone and told to F*** off. The guy from Mitschka also threatened to take my little dog, and threatened to get my son: his words were, "we are going to get ****"". The silent calls continued as did the abuse.

The guy at Mitschka Aletnative Advisory has been calling my fathers home a few times a day, they leave the phone ringing for about 10 mintutes. They want my dad to buy shares in Sainsbury PLC, he's said he has no money but they keep on.

We don't know what to do now. I know they are a scam but Old Age Pensioners were bought up in a time of trust, where you word was your bond, so they don't understand the scum involved here.

Any advice/updates would be most welcome. Many thanks folks.

No doubt those addresses are all virtual offices, likewise phones are probably VOIP lines diverting to a foreign country. I doubt if any of these crooks are sitting in an office in Harley Street or elsewhere in the UK. Maybe if you found out who is providing the virtual office and informed them of the fraud they would at least stop them from using it. This would at least cause some inconvenience to the scammers if nothing else. I have some experience of using virtual/serviced offices and the providers are often decent companies who wouldnt want to be associated with this sort of thing.

 

[pboyles]

My dad received emails from Money and Markets from the USA, other emails came and he clicked a link, was then harassed by phone calls from a company known as: mitschka-advisory.com.

My dad was hounded and bought £2k worth of share in Gold. (Oxus Gold PLC)

Another company involved are: guardmanescrow.com in Harley Street London?

Mitschka Alternative Advisory are based at 27 Old Gloucester Street London (on doing a search there is a Physic Hotline registered at this address.

When I phoned Guardmann Escrow in Harley Street my call sounded like it went to the other side of the world; person on the other end spoke very poor/negigible English.

On phoning Mitschka Alternative Advisory I had the phone put down on me, they wouldn't give their address. I was bombarded with silent phone calls: I was screamed at down the phone and told to F*** off. The guy from Mitschka also threatened to take my little dog, and threatened to get my son: his words were, "we are going to get ****"". The silent calls continued as did the abuse.

The guy at Mitschka Aletnative Advisory has been calling my fathers home a few times a day, they leave the phone ringing for about 10 mintutes. They want my dad to buy shares in Sainsbury PLC, he's said he has no money but they keep on.

We don't know what to do now. I know they are a scam but Old Age Pensioners were bought up in a time of trust, where you word was your bond, so they don't understand the scum involved here.

Any advice/updates would be most welcome. Many thanks folks.

FSA issued a warning about them 2 days ago by the way.