Is this a boiler room scam

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  • dzug1
    dzug1 Posts: 13,535 Forumite
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    sabretoothtigger wrote: »

    That sums it up, avoid anything not on a free market dealt by multiple brokers, basically avoid illiquid investments because you probably wont be able to sell for the price you bought.
    Afaik its part of the market not just a scam


    A firther problem is that many of these small US companies come under a thing called 'regulation S' (I think - it might be T)) - which basically means that foreign imdividuals can BUY shares, but cannot sell them until the regulation S restriction has been lifted by the US authorities. So even if there's a period when you COULD sell at a profit, Uncle Sam won't let you.

    The boiler rooms will of course deny all knowledge that such a restriction could possibly exist.
  • shuvoff
    shuvoff Posts: 7 Forumite
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    Gresham seem to have got the hint and haven't hassled anymore.

    Getting rid of Wyncrest shares via Apex Consulting Online, which seem to be above board at least. They are trading them for PetroChina shares for a sum.
  • Scams_2
    Scams_2 Posts: 1 Newbie
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    shuvoff wrote: »
    Gresham seem to have got the hint and haven't hassled anymore.

    Getting rid of Wyncrest shares via Apex Consulting Online, which seem to be above board at least. They are trading them for PetroChina shares for a sum.

    Actually you are about to be scammed again, this is textbook boiler room. After you get stuck with some worthless shares they (or another related boiler room) approach you again and offer to swop them or have the restriction lifted for an advanced fee. I can't even find Apex Consulting on the web but if I could I bet they would be registered in a virtual office and have a website that was created last month.

    You are about to give more money to the crooks that robbed you the first time. Ring them up and ask them where they are regulated, that is normally enough to make them disappear.
  • Reaper
    Reaper Posts: 7,283 Forumite
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    edited 3 December 2009 at 2:28PM
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    Bluntly put but yes, you have been scammed a second time.

    Apex Consulting Online are on the FSA register of firms to beware of:
    http://www.fsa.gov.uk/pages/Doing/Regulated/Law/Alerts/overseas.shtml

    Typically the scam this time is to agree to take worthless shares off your hands for an upfront fee. They take the fee and that is the last time you will hear from them.

    Having been scammed once you really ought to have learnt by now to check the financial company you are dealing with is registered by the FSA. See their online register here:
    http://www.fsa.gov.uk/register/firmSearchForm.do
  • shuvoff
    shuvoff Posts: 7 Forumite
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    I did see them on there and told my dad but he's adamant that they are OK and Petrochina shares are 9.91. I'm familiar with PetroChina as they regularly feature on my work's website.

    However, I got the response that I suspected. There's no fool like an old fool and there's just no telling him!
  • Reaper
    Reaper Posts: 7,283 Forumite
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    The problem is not PetoChina. The problem is it is extremely unlikely they will give him the shares.

    To be scammed once is careless. To be scammed a second time having been told in advance it is a scam is gross stupidity.
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    I wonder if, at some time in the future, the OPs dad will be on here blaming some government department, demanding an enquiry and asking the rest of us to reimburse him for his losses?
    Sorry shuvoff, I know nothing about you or your dad but that sort of thing happens all the time. I don't know whether they should receive sympathy or condemnation. Personally, I give them sympathy until they ask me to pay.
  • shuvoff
    shuvoff Posts: 7 Forumite
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    Unfortunately he's not internet savvy or he'd never have got into this mess in the first place. I even provided the list of unauthorised companies on the FSA list before he committed to the deal.

    Have tried to stop him but the deal has been done so I give up. Its 2k this time. I'm sure he's aware that if they are dodgy there's nobody else likely to pay for his mistake.
  • ed123_2
    ed123_2 Posts: 556 Forumite
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    ....it sounds like a great investment, send them your life savings................................................................................................................not
  • sharescam
    sharescam Posts: 5 Forumite
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    shuvoff wrote: »
    there's nobody else likely to pay for his mistake.


    Well it depends on what other crimes they finance with the money they have been given, trafficking, drugs, terrorism, setting up new boiler rooms to scam other people etc etc. I'm sure it will be reinvested to bring misery to others in the future. No excuse for it really, especially with all the warnings.
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