Is this a new Share Scam

dominicharvey

I have recently been approached by an american broker wanting to buy some shares I have on behalf of a client of theirs, they are offering way over the market value of the shares AND also asking for a bond upfront before they'll release the money.............I'm suspicious, is it normal practise to ask for a bond (supposedly refunded to me after the sale has gone through), this is what the insurance company requires as a guarantee to cover the transcation. Anyone got any thoughts on this, I have been sent a contract to sign too.
cheers dom

oldfella

so why are they offerring over market value ?

cheerfulcat

dominicharvey wrote: »

I have recently been approached by an american broker wanting to buy some shares I have on behalf of a client of theirs

Broker cold calling. No reputable broker will do this.
American broker - not FSA regulated.

they are offering way over the market value of the shares

What explanation did they give for this?

AND also asking for a bond upfront before they'll release the money.............I'm suspicious, is it normal practise to ask for a bond

No.

(supposedly refunded to me after the sale has gone through), this is what the insurance company requires as a guarantee to cover the transcation. Anyone got any thoughts on this, I have been sent a contract to sign too.

Don't sign anything. This is a scam.

gazhawkins

Scam, definitely.

It's as likely as someone offering you 20 grand for a motor that's worth 10.

Yeah right.

dunstonh

There are warnings of this type of thing on the FSA website.

Dont do it.

dominicharvey

Yeah thanks chaps, you confirmed what I already suspected. They were asking for a bond up front of nearly £3000 to release £44,000, this is an apparent requirement by the insurance company that is underwriting the contract. Its a new version on me but I can see how it could be appealing apart from the very basic and unconvincing contract :rotfl: and an unconvincing website - https://www.butterfieldadvisors.com.

TBeckett100

trading since the 80's and have only just registered the domain name, very fishy!

jonesMUFCforever

one word answer SCAM

ManAtHome

Pretty much the same as paying £3k to get a slice of $836 million out of Sierra Leone... Or on a smaller scale, paying £100 to people who have a queue of buyers for the car you just advertised.

All work on the same basis - you think you're getting a great deal, and the fee is only a small percentage of the profit. Unfortunately the profit never materialises.