Boiler Room Scams

[Gold31]

Medisys

This is a real beauty!
Call this am from a foreign sounding bloke whose name I couldn't catch, Hans or suchlike. Told me he had spoken to me 8 months ago recommending Mosaic Company at $35. I would never buy at that price but he told me they got out recently at $120. Absolutely amazing profit! but what's this?After this call I checked the NASDAQ for MOS and there in black & white is the 52 week high/low range shown as $59.34/$21.94. No sign of $120?
He went on to extol the merits of Medisys Corp., (MDYO), Medical hardware software co. etc. I was not really listening.Listed at $5 but got a load of stock for institutional investors and will get me in at £3. Immediate alarm bells. Highly recommended and should go to $8 in 2 to 3 months. While he talked I was on Nasdaq and pink sheets and there is MBYO on Grey market, last trade $5 in July! Asked him if the share was fully tradeable on the main market and he said yes. I asked why had I found it on Pink Sheets and he said that is not possible. I said you are talking C..p and I then had the pleasure of him yelling down the phone that he was a proffessional etc and I knew nothing and was rude etc. I asked for more details of his name and his company and he shouted some more before hanging up!
I thought I had blown it as I had not got his name, but lucky me, 5 mins later I get a call from John Stokes from Wilson IG, same company based in Brussels for tax reasons, same sales pitch. Talked about a "secure trade line" as required by SEC, and T+5, ie 5 days to settle trade, or carry out due diligence. Payment to Medisys through AAA bank, he gets his commission when I sell. Yea, right!
As you can all see this is a total scam. the phrase " getting you in on the back of institutional investors" is a dead giveaway.When I mentioned pink sheets he again went no way until I started reading of the details to which he said "This isn't going to work, is it Ken?" and hung up.
Unfortunately the company name does not check out. Wilson IG appears to be a legitimate company in USA, not a financal rip off merchant in Brussels! So I appear to have got that wrong or maybe they deliberately misled me?
Anyway don't touch Medisys.

Here's the company info from PinkSheets. By the way their last filing was received Jan 07 for the quater to Sept 06. If you bought without reading this or knowing it was a grey market company then I'm sorry, but we have all been there which is why we are on this forum.

MediSys Corp.
800 Village Square Crossing
Suite 201
Palm Beach Gardens, FL 33410

http://www.medisyscorp.com

Phone: 561-622-5889
Fax: 561-656-2099
MediSys Corporation provides medical technology solutions to physicians in the internal medicine, family practice and general practice markets by offering innovative practice enhancement tools in the form of unique systems or modules. These easily integrated modules enable doctors to provide superior medicine while improving revenues and profits by leveraging their exiting infrastructure.

OTC Market Tier
Grey Market
Primary SIC — Industry Classification
8093 - Specialty outpatient clinics, misc
State Of Incorporation
DE
Jurisdiction Of Incorporation
United States
Year Of Incorporation
2002
Company Officers
Joshua Konigsberg, CEO, President
Brian Gibson, Vice President

Number of Employees
3 as of Jan 27, 2005
SEC Reporting Status
non-SEC Reporting Company
Fiscal Year End
12/31
Estimated Market Cap
$334,995 as of Oct 15, 2009
Outstanding Shares
66,999 as of Aug 28, 2007
Authorized Shares
500,000,000 as of Dec 12, 2004
Float(shares)
20,760 as of Aug 28, 2007
Current Capital Change
shs decreased by 1 for 5000 split
Pay Date: Aug 28, 2007
Transfer Agent
Holladay Stock Transfer
2939 N. 67th Place
Scottsdale, AZ 85251

Kenmar
Thank you for this - usually I invite the 'scammer' to communicate with me via email to give me time to review what they have on offer ! As I am a bit Slow ! But my main point is that I had an encounter with Medisys some time back. I understand their President/CEO or whatever you call them is a David Wong and their MD Charles Spicer. They had ramped up the share value via Reuters and it crashed in a short time. Then there was a share split 1:100 or something like that and my investment was reduced to a FRACTION of the value in a very short time. When I made enquiries about David Wong the response was NOT complimentary . I am convinced that was another case of barefaced scamming. A very expensive lesson was learned ! ! ! .

 

[Gold31]

Kenmar
Re Medisys
I have been chasing 'scammers' for the past 5 years and there seems to be no let up with their dirty tricks.Reporting to the Financial Regulator is one way to try to put manners on them but there are so many at it that the only way to beat them is to have CONSTANT warnings in all the press for the general public. Of course when one becomes aware of the dangers it can be fun listening to the c..p they come out with. It is also fun to watch the contortions in the USA where the "enlightened" administration have appointed a CEO in charge of the Securities Exchange Commission who had a close association with the Madoff clan for quite a long time (? 16 years ) and failed to act. SO what hope is there now for rigorous Regulation "IN THE PUBLIC INTEREST" ? ?

 

[sqawky123]

Good job Kenmar.
Nothing has changed except it sounds like the scammers are getting hungrier. They still work out of the same locations. You know the countries. They fly them in from different countries from all over the world to the same locations. Usually losers who are promised a dream. They are trained well. They are taught to lie, lie, lie and if caught, deny, deny and lie and confront you and accuse you if you question them, because they are full of pride and arrogance, they will try to put you down. They are trained by highly professional ex stockbrokers (the operators) who have been banned by SEC and have a rap sheet a mile long. The operators have been banned because the greedy bas..... couldn't keep their hands off of their clients money.

Some scammers have been arrested lately but not the operators. Funny how the operators are never in the room when a raid is performed. They usually get the lowlife boiler room workers. This doesn't put a dent into the operations.

Remember, they lie, lie and lie. Any money you send them is a loss once it leaves your hands.

 

[experienced_it_all]

I am not sure what the SEC actually does anymore. I see that American Heritage Stock Transfer, Inc. has filed all the correct paperwork with the SEC, so I guess that gives them the right to put their name down as the Transfer Agent on several OTC stock certificates and then do nothing.

I have sent several emails and called several times during normal business hours and all I get is a voice mail and zero reply from the emails. They are the Transfer Agent but they don´t really transfer anything?!?! What a great job, rake in money and do nothing!

I am glad the SEC makes them register! What do these guys file, "Form 144, Right to Steal"!

SEC is code for POS!

I know some of you guys have reported the "broker/advisors", does anyone have experience reporting the Stock Transfer Agent or the Company of the stock being sold???

(I have never gone this far so I guess I havn´t "experienced it all"!)

 

[kenmar 1952]

Medisys Corporation

Back again.
Yes, normally I try to get e-mail but I was so fed up I went for the quick kill. Sorry about that as it means I missed the full company name. To be honest though I doubt if I would have heard from them, they were very quick to back off when I asked intelligent questions. They were on such dodgy ground they were well aware that the slightest due diligence would find them out.
Other reason I am posting again is to point out that there are several other companies out there using Medisys in their name. My post only refers to Medisys Corporation, wheither or not the company is part of the scam is for others to decide. No smoke without fire?

 

[Claudia123]

Am I missing something. Basically you guys get a call from a broker you don't know selling shares in a company you never heard of - and you buy ?? I have to be missing the point surely. Please tell me so.

 

[experienced_it_all]

Am I missing something. Basically you guys get a call from a broker you don't know selling shares in a company you never heard of - and you buy ?? I have to be missing the point surely. Please tell me so.

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.

 

[Claudia123]

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.

Maybe I not smart and I'm certainly not trying to be snide. But reading this thread gives the impression people have bought investments with no knowledge of either the broker or the company being offered. Now they complaining about it. Maybe that's the price of education or does it just come down to basic greed.

The good thing about this thread is it makes others aware of the scams out there. If it sounds too good to be true ...............

 

[kenmar 1952]

in my case I trusted people too easily. Being honest myself it took me a while to realise that there are people with no morals. Personally as I have stated before I unknowingly bought restricted stock, I didn't even know there was such a thing, so when I tried to sell at a profit I was unable to do so. I knew nothing about "pump & dump". When I bought stock that rose in price and then was offerred more by the same broker at a discount it seemed a good idea.
This thread only started in 2005, it was not around when I got scammed.
So Claudia123, maybe one of the reasons you can be so smug is because we went before you and have confessed our mistakes in order to prevent others making our mistakes.

 

[Claudia123]

Read the last line of my post above. 'The good thing about this thread is it makes others aware of the scams out there.'

I ain't being smug. All I was saying is that it amazed me how it happened and with hindsight surely you are. Ok I gonna leave it at that - wish I hadn't interrupted the thread to be honest but it made interesting reading.

 

[everyonerich]

you've got mail

Hello


I am writting this letter with due respect and heartful of tears since we have not known or met ourselves previously. I am asking for your assistance after I have gone through your profile that speaks good of you.

I will be so glad if you can allow and lead me to the right channel towards your assistance to my situation now. I will make my proposal well known if I am given the opportunity. I would like to use this opportunity to introduce myself to you.

well, i am zhara kones 17years old girl and I know that this proposal might be a surprise to you but do consider it as an emmergency. My (late) father Mr kipkalya kones was a very wealthy gold and cocoa merchant who based in Accra and Abidjan respectively.


But he was killed along side with my mother during last year's Rable attact and all his properties was totally destroyed. However, after their death I managed to escape with a very important document (DEPOSIT CERTIFICATE (US$8m)million U.S Dollars deposited by my late father in the bank which i am the next of kin. Meanwhile,i am saddled with the problem of securing a trust worthy foriegn personality to help me transfer the money over to his country and into his possession pending my arrival to meet with him.

Furthermore,you can contact the bank for confirmation and i will issue a letter of authorisation on your name,that will enable the bank to deal with you on my behalf. I am giving you this offers as mentioned with every confidence on your acceptance to assist me or take me as your child and manage the money.

I am inclined to offer you 20% of the total sum as a mode of compensation for your effort after the successful transfering of these fund to your nominated account overseas Conclusively,i wish you send me a reply immediately as soon as you recieve this proposal,please write me back with this email address ([email protected])

Until then, Sincerely

yours,

zhara kones

 

[sqawky123]

Yes, this is typical boiler room trash. They sell you stocks for half of the day, and then send out these typical Nigerian scam letters for the rest of the day. They may or may not be Nigerians but they do not live in Nigeria. They sell everything from medical/environmental friendly inventions to oil stocks to hydrogen fuel to magic underwear. If any of you have ever purchased stocks from a cold caller, this gives you an idea of what value your stocks are worth - nothing, and the same for the value of the cold callers company - nothing.

This mail does give us a good laugh.. A great story writer with great imagination.., tries to play on your sympathy for the poor orphaned girl and your greed.

 

[AlexGreen]

Everyone makes some good point and no I don't believe the fella was being snyde.

But it does prove 2 things -

1) The importance of independendent research into who you're dealing with
2) The importance of understanding what you're actually buying. For example, can you read a balance sheet, do you know anything about what the potential company is doing, have you ever traded US stocks and pink-sheets, do you know what they are etc

Plus people must also learn that it's odds-on that financial companies are trying to use your money to make themselves cash first (or in the boiler rooms case steal your cash) and then if you're lucky make you money.

And they're all at it, from the top banks down to the back-street clip joints. Basically there's one big con-job going on all the time. So learn to be scared when a finance firm wants your business as the scared normally get on a lot better than those that trust. Pre-1980 you could trust a bank (or finance firm), now no way as they've turned into the greediest people and institutions on the planet.

 

[experienced_it_all]

Everyone makes some good point and no I don't believe the fella was being snyde.

But it does prove 2 things -

1) The importance of independendent research into who you're dealing with
2) The importance of understanding what you're actually buying. For example, can you read a balance sheet, do you know anything about what the potential company is doing, have you ever traded US stocks and pink-sheets, do you know what they are etc

Plus people must also learn that it's odds-on that financial companies are trying to use your money to make themselves cash first (or in the boiler rooms case steal your cash) and then if you're lucky make you money.

And they're all at it, from the top banks down to the back-street clip joints. Basically there's one big con-job going on all the time. So learn to be scared when a finance firm wants your business as the scared normally get on a lot better than those that trust. Pre-1980 you could trust a bank (or finance firm), now no way as they've turned into the greediest people and institutions on the planet.

I agree 100%. I know that there are still people who are trying to the right thing and do good business, even "strangers" or people who "cold-call" (because I have to be one these people sometimes - and I admit I hate it because I usually give a quick NOT INTERESTED and hang up on sales people), but it comes down to doing research (due diligence). If there is anything that you find to be a "red flag" or just the slightest feeling that something is off, DON´T PROCEED WITH THE DEAL. Nobody can MAKE you do anything you don´t want to over the phone.

I remember from a sales textbook that it said - LOGIC makes people THINK, EMOTION makes people BUY. So I would suggest turning this around and never buy off emotion, only buy off logic.:smart:

 

[experienced_it_all]

Company / Transfer Agent / Broker

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)

 

[sqawky123]

Everyone makes some good point and no I don't believe the fella was being snyde.

But it does prove 2 things -
1) The importance of independendent research into who you're dealing with
2) The importance of understanding what you're actually buying. For example, can you read a balance sheet, do you know anything about what the potential company is doing, have you ever traded US stocks and pink-sheets, do you know what they are etc

Plus people must also learn that it's odds-on that financial companies are trying to use your money to make themselves cash first (or in the boiler rooms case steal your cash) and then if you're lucky make you money.

Pre-1980 you could trust a bank (or finance firm), now no way as they've turned into the greediest people and institutions on the planet.

I agree with point #1 but point #2 means absolutely nothing if you do not know the people you are dealing with. Boiler room operators (moron perverts) know point #2 better than you because they can tailor the con to suit whatever makes them believable. How many investors have received a piece of c--p paper saying they had made great profit for months and believed, only to find out that they have been scammed. The greediest people in the world are the boiler room operators, (moron perverts).

As for contacts, do not give your email or contact info out to anyone including forums like these, unless you enjoy being hassled with bs calls. You do not know these people here and this is where they can build your trust but you do not know them.

Again, there is no such thing as a cold call investment in the world today. This does not exist. Do not invest with anyone you do not know. Or seemingly know from forums and other internet or advertising media. Boiler room operators use all of the info they can gather from threads like these to build your trust with them. You have to personally know the people you have business with. Claudia reminds us of this and this is good advise.

 

[AlexGreen]

Swark

Sorry but nobody knows point 2 better than me because I'm not going to believe a word anyone says until I've researched the company and market in question.

For example, some (legit) penny stock broker calls me up saying 'you should buy 'Soverign Gold Inc.' I'll listen to what they say then go dig the financials out for the company. I'll also look very closely at who their auditors are, when they file their accounts, if they've missed filing their accounts in the past. I'll then investigate the market they're trading on, assume that's pink sheets. And many more simple reseach strategies into what I'm exactly buying.

Do that and I reckon I'll soon find out that Soverign Gold is nothing more than a shell of a company, no assets and little cash on hand. Plus, I'll soon learn all about what the pink market is and it's few advantages and many disadvantages.

And as I said in my previous post if people don't know how to research a company properly either learn or stay well clear of the stockmarket otherwise it's odd-ons the sharks, both legit and crooks will get you - as that's part of their business plan - to get hold of their clients money.

 

[DeadMoney]

Am I missing something. Basically you guys get a call from a broker you don't know selling shares in a company you never heard of - and you buy ?? I have to be missing the point surely. Please tell me so.

nope, you got it, that's exactly how it works.
Some people really believe there are nice people out there calling around looking to help them to make a ton of really easy money, with little or no risk.

 

[Swiftnick]

Alpha Securities

Phoned by Jack Dawson, follow up by Peter Jackson, from Alpha Securities.(alpha-securities.com) FSA reg 206700 which lists them as Greek with EEA authorisation, means they can trade in other EEC countries I think. However when you check the FSA "list of unauthorised overseas firms operating in the UK" the name Alpha Securities appears again. I have asked the FSA twice for an explation of how an approved firm can appear on the non approved list, but as yet I have not received an answer. It may well be that they are 2 different firms with the same name, not impossible in the current scam market.
Now I am not saying that Alpha Securities is a boilerroom. However they show all the signs. Initially I was offered Centamin Egypt (ticker CEY on AIM) @ 79p as they had bought them at 75p on the back of institutional investors (classic scam ploy), current market price 83.25p, an instant 4.25p profit. I delayed and the value rose to 93p so I said I would be interested in a straight buy/sell and pocket the profit. "Can't do that, we are an investment firm so you have to let the shares sit for a while." Said not interested so goodbye. Next thing I get a call from their brokerage dept., offering me the shares at 93p, with a small discount. Told them not interested. My only real complaint, apart from the initial cold call, is that they keep on phoning me and the shares are now about £1.
This strikes me as classic boilerroom behaviour. They claim to be a well established company and so it would appear ars the FSA reg goes back to 2001, but if nothing else they are excessively agressive. If the deal is so good why are they trying so hard to sell it?
Now also be advised that there is another AlphaSecuurities.com.sa (Australia) so be careful not to confused with whom you are dealing.
Has anybody any relevaant info? Do I hear Anley sharpen his typing finger!
Make up your own mind.

I too have been cold called by Alpha Securities and have contacted the FSA asking how a firm can be simultaneously "Registered" and an "Unauthorised overseas firm operating in the UK". I will let you know if I get a response.

 

[experienced_it_all]

I too have been cold called by Alpha Securities and have contacted the FSA asking how a firm can be simultaneously "Registered" and an "Unauthorised overseas firm operating in the UK". I will let you know if I get a response.

Trading regulations involve a lot of intricacies. If the company is "registered", it may mean that they can not solicit business and therefore are "unauthorized" to operate in certain countries. On the other hand, an "unregistered" company may be allowed to solicit business as long as they disclose that they are "not authorized".

Many regulations and stipulations apply and how the company is presented can dictate if the offer is legal or illegal (i.e. "No-risk, I am sure this will go up!" or "High risk, possibility to lose some or all of your investment - here are the facts, legally I can´t give you an opinion."). Depends on the location of the exchange where the company is trading and where the investor is a resident, etc.

There are hundreds of pages of legalese for companies to find loopholes in, for average people (most of the victims are probably not even in the business at all) it can be so confusing that the "boiler room broker" can paint any picture they want and make it all seem like it makes perfect sense.

There is a reason that the Series 7 (U.S. brokers) test is 6 hours long with 260 questions. (Not to mention that a "boiler room broker" can say whatever they want because they don´t follow any rules.)

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?? Everyone was a stranger at some point in your life. Doing business with people you don´t know is a common practice. Just use common sense. If it seems too good to be true, it is! If someone is promising you that this is the next huge thing, it´s a scam! If it is high pressure sales techniques, zero-substance, no-risk, etc. - it´s a scam!