Swiss Key Equity Scam?!?

LaineyG

Hello,
This is my first post, sorry to jump in at the deep end!

My mum has recently invested with Swiss Key Equity, but is now suspicious of them. I'm worried it is a scam. A quick Google came up with a blog post indicating that it was indeed a scam.....a "pump and dump" one to be exact.

Can anyone shed any light on this?

Thanks!

Jonbvn

I think I agree that it is a scam. No FSA or other registration on their website.

How did you mother get involved with them?

SnowMan

Yes I am afraid it looks like a share scam.

Some info on the Financial Services Authority website "Money made clear" about dealing with share scams at

http://www.moneymadeclear.fsa.gov.uk/guides/everyday/safe_against_scams.html#spot

and follow the links on the RHS (e.g the link under the section "share scams and boliler rooms" to Operation Archway) to report this to the police

LaineyG

Thanks!

I'll get her to look at those links.

She found them on the Shareview website, so she thought it was legit.

Reaper

I'm afraid I agree. The website layout looks similar to other scams and the site was only registered on 14th Feb 2009. They set up, grab the cash, then create a new web site and start over.

The golden rules are only to deal with financial companies registered with the FSA (easy to look up on their web site here) and never invest with a cold caller.

boxtie

I have been approached also, the company that I am asked to invest in exists. (tlag), trades on the otc index usa. This is not enough to say that this is not a smam like, so I look at tlag website, click INVESTOR RELATIONS, and send him an e.mail. The mail comes back stating that Swiss Key Equity is legit and that the reason that the buy price is less thah the current trade price is that I would have to hold for at least 6 months. I ask anyone here....what more can I do to guard against a scam? Looking genuine to me. I accept that the swiss key equity site could be scam....... I have spoken to swiss key, had emails from them, faxes, I am weakening....think i ought to invest?

regards from Durham

Reaper

Blimey, some poeple are determined to be victims.

There is a simple rule - if they are not authorised with the FSA then don't touch.

Just out of interest I copied a random chunk of their web site into Google. This bit:

The team has a strong background in product development and investment management and combines traditional investment vehicles with new ideas in building client solutions. Our diversified fund range demonstrates our unique approach.

They found a match in the cache version for Financial Investment Solutions (though their web page has now been taken down) - a company there is an alert about here.

They set up, make a web page, get closed down, open a new company with an almost identical web site and repeat.

dunstonh

boxtie wrote: »

I have been approached also, the company that I am asked to invest in exists. (tlag), trades on the otc index usa. This is not enough to say that this is not a smam like, so I look at tlag website, click INVESTOR RELATIONS, and send him an e.mail. The mail comes back stating that Swiss Key Equity is legit and that the reason that the buy price is less thah the current trade price is that I would have to hold for at least 6 months. I ask anyone here....what more can I do to guard against a scam? Looking genuine to me. I accept that the swiss key equity site could be scam....... I have spoken to swiss key, had emails from them, faxes, I am weakening....think i ought to invest?

regards from Durham

The answer to the first question will be the answer to the second question.

1 - Are you stupid? Yes or NO
2- Should you invest with them?

They are not legit. To sell investments in the UK to UK residents you have to be FSA authorised. They are not FSA authorised. There is no consumer protection that a UK broker would offer. The FSA have also issued warnings about this.

If you still want to transact with such a company then you are stupid. It really is as blunt as that.

They are operating outside of UK law. That should be enough to stop anyone using them.

Reaper

Not only are they not registered by the FSA but the FSA actually have them on a warning list here.

This warning list includes unauthorised overseas firms that the FSA has received complaints about in respect of their activities and/or the FSA has reason to believe they are involved, or have been involved in, activities that contravene section 19 and/or 21 of FSMA.
Such firms are often involved in ‘boiler room’ activities and pose a high degree of risk to consumers.

monkeyaroo

I've been called by them in the past.

They'll claim not to charge you for their hot tips which will make you 1000% + because they are paid a bonus based on how their "exclusive hand picked" private clients portfolios perform.

Oh.. but you have to pay into a bank account to invest (they say it's the hot tip companies investor relations department), you can't go through your usual broker. They can't give you a good reason why - they just change the subject.

None of it adds up if you sit an think about it for a second.

If you want to dabble in shares, research a bit yourself, use share.com or similar where the dealing fees are very low (or even use your bank if they offer a dealing service).

Don't put all your eggs in one basket.

And don't invest any more than you can afford to lose!

Have fun with it

turbobob

dunstonh wrote: »

The answer to the first question will be the answer to the second question.

1 - Are you stupid? Yes or NO
2- Should you invest with them?

Sums it up perfectly :rotfl: