I KNOW it's a scam but ......

chesky

About 15 years ago I bought shares in a company when it floated, because I liked the product (never a good reason). About four years later it went bust and you can't even buy their delicious ice-cream.

So it was with some surprise I received a call a couple of months ago, from an obviously Asian person, saying they were acting for someone who wanted to buy the shares for around £15,000. I basically told them to 'go away' but afterwards I wondered if it was a scam, how did it work, given the fact that nobody in their right mind would give their bank account details.

They called again today. Told them that Mrs X was away for a week and they said they will call back then.

So what's the scam, or is there by some chance some idiot who wants to buy shares in a defunct ice-cream business?

jimjames

No, it is a scam.

If you go ahead you'll need to pay some registration fee or similar which you'll then lose when the sale money fails to appear

AnotherJoe

The scam is most likely that they send you a cheque for £20k because they happen to have one for that amount, you wait until it clears and pay them £5k difference and then a month later it's discovered that the cheque is fraudulent and the £20k is withdrawn.

Unless, is there any possibility the company is doing well somewhere abroad that you aren't aware of ? What is the company called?

chesky

No, definitely an English company - Hill Station Ice Cream, took over Losely ice cream, then went bust.

Ah well, looks as though I was right first time.

AnotherJoe

Losely are still going though, it's seemingly always being sold whenever I go to the theatre, did they sell that off after they went bust ?

chesky

Yes. The company was set up by a husband and wife team, with really no experience, but a good product - you could buy it in Waitrose, Sainsburys and Wholefoods. Their lack of experience was the root of the problem, they couldn't keep up with production & deliveries. Then they Overextended by buying Losely and I think that part was sold off when the company was wound up but I must admit I'd lost interest in the details by that point.

atush

About 15 years ago I bought shares in a company when it floated, because I liked the product (never a good reason).

Actually, it can be a very good reason.

Invest in what you know. All depends on other things such as USP, barriers to entry, vulnerability to commodity prices/changing regulations.

dealer_wins

From the FCA website:

If you already own shares in a company you may receive a call from someone offering to buy them, usually at a higher price than their market value.
This might sound like a great deal, but will likely come with a request for money up front as a bond or other form of security, which the scammers say they will pay back if the sale does not go ahead. This is probably a scam where you pay money upfront but never hear from them again.

prowla

I sometimes get these calls; they obviously do a bit of research to make it plausible, eg. wanting to get the patents of a tech company.

I've never taken things further to see what the game is, but my guess is (like above) they want you to pay fees upfront.

If they did ask me for that then I would say that quite the contrary, I would need a payment upfront to secure the shares.

PeacefulWaters

If they charge a fee, tell them you only have half the amount but if they send you a cheque for the other half you will then be in a position to pay the full fee.

chesky

Well, I'm rather disappointed that the scam seems so obvious. Surely nobody nowadays would fall for this sort of con and dish out the information.