Boiler Room Scams

[MicNotScamed]

Im sorry all that I got on them was an email saying that an account was set up and they were assigned as my clearing agent. Hope this helps anyone else out there??
The email is as follows:.

On Fri, Apr 30, 2010 at 10:38 AM, Online Trading Trading Support <[email protected]> wrote:

Dear Mr. Michael #######,

You must remit funds to your designated clearing member account.

* Additional funds can be remitted at any time.
* In order for funds to be properly credited to your account, please fax or email your legible, stamped, bank receipt or equivalent to your introducing broker\'s compliance department.
* Please put only the reference number in the details section of the transfer form, to ensure the transfer is completed correctly.

* Please note your clearing member:

Beneficiary Name: HOLY TRADERS
Beneficiary Address: T.S.T.
KOWLOON HANKOW ROAD, HOWARD BUILDING
HONG KONG
Bank Account No.: 018-167-429-201
Name of Bank: THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
Branch Address: KOWLOON MAIN BRANCH
TST HONG KONG
Swift Code HSBCHKHHHKH
Code
(Message to Bank OR
Special Instructions OR
Customer Reference OR
Additional Payment Information Details/Type/Purpose/Reasons of Payment ) REFCODE: FPHT43010-M######
* On most Telegraphic Transfer request forms there is a field for an extra comment.
Please specify this reference code and ONLY this code in this field.


Your Account Balance is now: 0.00 USD

You can now log into your account here:
http://trading.ferrierpartners.com/

If you have any trouble logging in please tell us here:
http://trading.ferrierpartners.com/support/

We wish you success with your trades.

Sincerely,

Online Trading Customer Service
Ferrier and Partners
ferrierpartners.com/contact/

 

[MicNotScamed]

Im wondering if the account details can be used against the owner of the account??

 

[sqawky123]

:clap:
Way to go Mic. I am happy to see this working.

Incidentally, Anley, that was BioDefence and BigBrains, but you got it right. Biodiesel and BioDefence is all scams operated by the same boiloer room operator. Maybe a different boiler room but same group.

 

[experienced_it_all]

:clap:
Way to go Mic. I am happy to see this working.

Incidentally, Anley, that was BioDefence and BigBrains, but you got it right. Biodiesel and BioDefence is all scams operated by the same boiloer room operator. Maybe a different boiler room but same group.

I was just going to say the same thing. It is BioDefense but you can call it BioDiesel or whatever... the symbol for all of these stocks should be BS.PK for these Pink Sh.t stocks!!!!

 

[anley]

:clap:
Way to go Mic. I am happy to see this working.

Incidentally, Anley, that was BioDefence and BigBrains, but you got it right. Biodiesel and BioDefence is all scams operated by the same boiloer room operator. Maybe a different boiler room but same group.

Thanks for the update.

So I'm slagging off BOTH BoiDefence and BioDiesel.

Hope I'm not going to get 2 sets of lawyers on my case for having a go at such upstanding companies

 

[sqawky123]

Thanks for the update.

So I'm slagging off BOTH BoiDefence and BioDiesel.

Hope I'm not going to get 2 sets of lawyers on my case for having a go at such upstanding companies

One set of lawyers would have to be Thai Lawyers, where they operate out of.

The other set might be where they originated from. Check the domain registration from biodefense. I am suprised they are that close to home. They must be getting desperate. Maybe it was one of their daft members.

 

[pboyles]

I just noticed that there is a company called Man Financial on the FSA warning list, it seems the boiler room scams are increasingly using names the same as, or similar to, genuine companies.

 

[anley]

I just noticed that there is a company called Man Financial on the FSA warning list, it seems the boiler room scams are increasingly using names the same as, or similar to, genuine companies.

Oh yes which is why it's important to call these people from the main switchboard number (for that company) held on the FSA website.

Of course the easier route would be to put the phone down on strangers calling telling people they can make easy money.......

 

[pboyles]

Of course the easier route would be to put the phone down on strangers calling telling people they can make easy money.......

Thats definitely the answer to all these scams, no due diligence require, cold call=scam.

 

[spiker0c]

Hi Everyone. As a fully licensed rep in the United States I would like to make a few clear points regarding the difference between a boiler room, and a legitimate broker dealer (B/D). For the most part, B/D's have a boiler room type environment, where high pressure sales is encouraged within reason. It is important for people to understand that even though it may sound like a scam, it is not always the case. Not all cold callers are scams, though many are. The best method to run a check on a U.S. broker or firm is via the FINRA, or the SEC. For the U.K, you should check the FSA register. It is also important to understand where you are protected. Most banks in the U.S. offer SIPC and FDIC protection, and it is a requirement to disclose that to each prospect. If a B/D is offering shares without SIPC protection, I would alert the SEC or the FINRA immediately. SIPC and the FDIC is similar to the compensation program from the FSA.

You may receive calls regarding a "too good to be true" opportunity to invets in a company that is highly undervalued. Most of the time it is, however you cannot deny the rallie last year held high opportunities if you times the market well.

Here is what you look for with any investment: First the exchange the security trades on. Second the volume (If you buy 1000 shares, and the stock trades 200 shares daily, you may never be able to liquidate.) Third if the shares have any 144 restrictions. If you buy today, can you sell today if necessary, or is there a waiting period?

These are important things to know about investments. There are many opportunities in the market that you may not know about, but a broker does. It is our job to research the markets and trends in order to make justifiable recommendations to clients based on their objectives and risk tolerance. It is also highly important that people who receive these calls mainly do so as they run a business. In the U.S. business are unable to be put on the federal do not call list. We also do not have to abide by the TPS in the UK if the initial call is strictly introductory without discussions of assets in/out of the markets, however it is still best to not call those companies as they registered for a reason.

If I were in the prospects shoes, I wouldn't stear clear of all the cold calls I receive. I would know the right questions to ask and how to detect a scam. Most brokers will call you and scream till your ears bleed to buy their "hot stock." Those I would hang the phone on. However if you receive a call from someone who asks YOU what your interests would be and makes appropriate statements and is down right polite, it may hold an opportunity and could be worth the listen. Just make sure to run a background check and look at the company they are recommending before sending them any money. You may at any time post a company name in this thread and I can offer you the background from the FINRA or the SEC.

Comments welcome.

 

[spiker0c]

Futures Trading Authority of Zurich

www.ftaz.org

Is a FAKE regulator.

Any 'broker' (offshore scammer) that points you towards them is setting you up to steal your money.

USE THIS BOARD TO ASK ANY QUESTIONS - WE WILL HELP YOU SPOT THE SCAMMERS.

__________________________________________________________

It is a shame that people will fall for these scams...

 

[pboyles]

Hi Everyone. As a fully licensed rep in the United States I would like to make a few clear points regarding the difference between a boiler room, and a legitimate broker dealer (B/D). For the most part, B/D's have a boiler room type environment, where high pressure sales is encouraged within reason. It is important for people to understand that even though it may sound like a scam, it is not always the case. Not all cold callers are scams, though many are. The best method to run a check on a U.S. broker or firm is via the FINRA, or the SEC. For the U.K, you should check the FSA register. It is also important to understand where you are protected. Most banks in the U.S. offer SIPC and FDIC protection, and it is a requirement to disclose that to each prospect. If a B/D is offering shares without SIPC protection, I would alert the SEC or the FINRA immediately. SIPC and the FDIC is similar to the compensation program from the FSA.

You may receive calls regarding a "too good to be true" opportunity to invets in a company that is highly undervalued. Most of the time it is, however you cannot deny the rallie last year held high opportunities if you times the market well.

Here is what you look for with any investment: First the exchange the security trades on. Second the volume (If you buy 1000 shares, and the stock trades 200 shares daily, you may never be able to liquidate.) Third if the shares have any 144 restrictions. If you buy today, can you sell today if necessary, or is there a waiting period?

These are important things to know about investments. There are many opportunities in the market that you may not know about, but a broker does. It is our job to research the markets and trends in order to make justifiable recommendations to clients based on their objectives and risk tolerance. It is also highly important that people who receive these calls mainly do so as they run a business. In the U.S. business are unable to be put on the federal do not call list. We also do not have to abide by the TPS in the UK if the initial call is strictly introductory without discussions of assets in/out of the markets, however it is still best to not call those companies as they registered for a reason.

If I were in the prospects shoes, I wouldn't stear clear of all the cold calls I receive. I would know the right questions to ask and how to detect a scam. Most brokers will call you and scream till your ears bleed to buy their "hot stock." Those I would hang the phone on. However if you receive a call from someone who asks YOU what your interests would be and makes appropriate statements and is down right polite, it may hold an opportunity and could be worth the listen. Just make sure to run a background check and look at the company they are recommending before sending them any money. You may at any time post a company name in this thread and I can offer you the background from the FINRA or the SEC.

Comments welcome.

The thing is that just because someone is registered with the FSA/SEC etc it doesnt follow that you wont lose your money. There are plenty of examples of registered companies losing most/all of a clients account through bad trades. In some cases these companies are set up to make money from commissions on clients accounts and they therefore churn through as many trades as they can.

Montague Pitmann was one recent example of this type of company, totally legal and not trading in restricted stock but at the end of the day people lost a lot of money.

I have yet to see one of these companies post a verifiable profitable track record, there is always some sort of deception to pull people in.

Maybe you can post a verifiable track record from your company.

 

[pboyles]

If I were in the prospects shoes, I wouldn't stear clear of all the cold calls I receive.
.

All the official advice in the UK both from the police and the FSA says you absolutely should ignore all cold calls about investments. I have yet to see anyone post on any board about a successful investment they made from a cold call yet I have seen hundreds of posts saying they have been scammed by cold callers.

 

[spiker0c]

The thing is that just because someone is registered with the FSA/SEC etc it doesnt follow that you wont lose your money. There are plenty of examples of registered companies losing most/all of a clients account through bad trades. In some cases these companies are set up to make money from commissions on clients accounts and they therefore churn through as many trades as they can.

Montague Pitmann was one recent example of this type of company, totally legal and not trading in restricted stock but at the end of the day people lost a lot of money.

I have yet to see one of these companies post a verifiable profitable track record, there is always some sort of deception to pull people in.

Maybe you can post a verifiable track record from your company.

I agree. Not all investments go the way they are intended. I would say that most of my long term (over 12 months) positions go well, and about 60% of my short term recommendations go well. Also, if you ever hear the typical "give me 90 days and I'll show you 20%" just laugh and hang up. I can show you 20% in a single day, however I could lose you 100% at the same time depending on the position you are taking. The key is to not overly diversify, and understand your investments.

 

[spiker0c]

All the official advice in the UK both from the police and the FSA says you absolutely should ignore all cold calls about investments. I have yet to see anyone post on any board about a successful investment they made from a cold call yet I have seen hundreds of posts saying they have been scammed by cold callers.

My recommendation for my UK clients is to engage in arbitrage, or invest in UK companies on American Exchanges. Take a look at some of the UK banks that trade in the states. There is an opportunity for abritrage, as well as the excemption from capital gains tax as a foreign investor.

My clients in the UK are the least traded in my client book, we typically hold on for a 12 month period in solid blue-chip or high cap companies.

 

[pboyles]

How did your client book perform overall in the last 3 years?

 

[spiker0c]

How did your client book perform overall in the last 3 years?

Did well before the crash, averaged 16% net overall for the year, with 7.25% in commission to me (meaning the gross average return was 23.25%). Only an average, some performed better, some not as good.

With some clients we held through the crash, others panic sold. On average I would say the crash took roughly 60% in total losses. Those who held are back in profit of 40%. Keep in mind, any person could have thrown a dart last year and picked a postion that doubled.

The market crash did a lot of damage to a lot of my clients. I made a common mistake of not implementing the proper hedging strategies as at the time I felt the holdings did not need them. That mistake I will not make again obviously, after all I am still flesh and blood.

 

[anley]

Did well before the crash, averaged 16% net overall for the year, with 7.25% in commission to me (meaning the gross average return was 23.25%). Only an average, some performed better, some not as good.

Not having a go at you personally Spiker but looking at those figures you as a broker have NO risk while the client bears it all.

So whatever happens to your clients you're going to do OK and make you 5%-10%+ a year, basically risk free I might add.

That my friends is how the financial markets work, they dump ALL the risk on their clients so using your cash to make them money and if you're lucky they'll be some profit left over.

 

[spiker0c]

Not having a go at you personally Spiker but looking at those figures you as a broker have NO risk while the client bears it all.

So whatever happens to your clients you're going to do OK and make you 5%-10%+ a year, basically risk free I might add.

That my friends is how the financial markets work, they dump ALL the risk on their clients so using your cash to make them money and if you're lucky they'll be some profit left over.

I see where you are coming from. Any person who invests in the market understands that there is risk associated with EVERY position, regardless of how promising. As a broker, I get paid for my services, however if my clients sell at a loss, I do not charge for the sell of that security or the buy into the next security. This way I only take in income when my clients see profit. I offer that in writing to all of my clients.

Brokers do assume more risk than most clients understand. We manage a plethora of clients, each having different holdings. This is why I encourage my clients to manage some of their own positions via personal trading platforms like ETrade or Scottstrade etc.

 

[sqawky123]

My recommendation for my UK clients is to engage in arbitrage, or invest in UK companies on American Exchanges. Take a look at some of the UK banks that trade in the states. There is an opportunity for abritrage, as well as the excemption from capital gains tax as a foreign investor.

]My clients in the UK are the least traded in my client book, we typically hold on for a 12 month period in solid blue-chip or high cap companies[/COLOR].

This sounds like an opportunity to open an office in the UK. The problem for clients trading in another country is you have absolutely no recourse. It is impossible for legal action. Clients have to take on the risk for stocks and when they hit a boiler room fraud, and loose 100%, there goes all their trading profits for the next five years to ten years. There would be more profit in putting your money in the bank, and we all know how little that is. So, when you get a phone call to send your money to the US, Panama, Hong Kong, Zurich or anywhere outside your country, yes it is 100% risk and 100% gone once you send it, never to see it again. I will echo this again, You have to know who you are dealing with and do your research. Even that is no gaurantee.

The SEC is a liitle lax in upholding regulations, hence the lack of the confidence in the US. Some brokers get fooled to pushing boiler room shell companies.