US based Phoenix Financial Services

PotentialEnergy

Hi
I had a call from Phoenix Financial Services Inc firm last autumn and a chap tried to push me to invest in a biotech/pharma minnow firm on the NASDAQ. The price at $2.80 a share soon reached $3.20 and I got more pressure calls. I said let's wait til March and see how things are but decided to take a small punt in my ISA thinking if the price doubled, I could invest with them but not lose money if they are fake. I then saw the share collapse to well under $2 but since then it has rebounded and breached $6 although it has slipped back recently but still over $5. The guy with initials MV has rung me several times and even sent me papers by FEDEX with a FEDEX return envelope.

I've checked the FINRA website and there is a broker matching the guy's name registered at the address in Hauppage New York where the FEDEX package will be returned assuming I sign up. I've even checked White Pages for details and someone matching his credentials lives in Hauppage. I may rattle him next time he calls by asking how people are by name.

How do FINRA regulatory rules protect foreign investors?

Has anyone in the UK had experiences with the Phoenix Financial Services business and letting them manage some of your money? Mind, I dread to think about the taxation processing. I have done a W8-ben form with a UK broker for my ISA so hope it applies if I invest with Phoenix.

Any experiences to share?

Malthusian

You are in the middle of a pump and dump scam. You should attempt to sell your shares immediately, and not via "Phoenix". If the shares are showing as above the price you bought at, the pump stage is still in progress. You may however find it impossible to find anyone who will buy the shares at the purported price. The idea is that the marks buy their shares at $5 or $6 from the scammers who bought them for peanuts, not from you.

If you invest anything via Phoenix you will lose your money.

No legitimate investment firm cold-calls.

PotentialEnergy wrote: »

How do FINRA regulatory rules protect foreign investors?

FINRA does not give a crap if non-Americans lose their money to penny share frauds.

I may rattle him next time he calls by asking how people are by name.

No half-decent scammer will be rattled by a mark asking them to make up some names.

iglad

PotentialEnergy wrote: »

Hi
I had a call from Phoenix Financial Services Inc firm last autumn and a chap tried to push me to invest in a biotech/pharma minnow firm on the NASDAQ?

Why no alarm bells when you get a call from a man in the USA selling you shares over the phone?

I suggest you go watch the movie 'Boiler Room' with Vin Diesel and Giovanni Rbisi.

Please don't entertain these scam merchants otherwise you will lose more money.

DrSyn

Always ignore cold calls or Emails asking you to invest.

1. Do you not think it strange, that someone from the USA would call you in the UK twice, to get you to buy these shares, when there are so many people in the USA?

2. You may be on a "mugs list" and may expect more calls like this. Or calls offering to sell your shares for you, or buy them off you.

3. A web search produced this:-

https://www.scamdoc.com/view/50658

If the above is not the correct company, I think the one below may be

https://www.silverlaw.com/phx-financial-inc.html

AnotherJoe

As said, see if you can sell and get your money out I'm guessing you cant.
Possibly you can think of an excuse why you need it for a few months before putting it back and they may cooperate.
You have been taken for a mug, indeed you are a mug.
Sorry.

Aretnap

AnotherJoe wrote: »

As said, see if you can sell and get your money out I'm guessing you cant.
Possibly you can think of an excuse why you need it for a few months before putting it back and they may cooperate.
You have been taken for a mug, indeed you are a mug.
Sorry.

I read the OP as saying that he hasn't actually given Phoenix and money yet (not directly at least), just bought some of the shares they are hawking through his own ISA.

If so the solution is simply
(1) Have no further contact with them - next time they call hang up without speaking and
(2) Seek the shares asap for whatever he can get; if its more than he paid then go out and buy a lottery ticket as it's clearly his lucky day.

iglad

Also if you can buy them through your ISA you have no need to purchase via a rather dodgy broker in NYC.

AnotherJoe

My bad and half apologies to OP, in that he hasn't given his money to these shysters so he's in the lap of the gods when it comes down to what will happen to the shares. He's still, bought the shares thing.

So OP get out before they crash.

bostonerimus

Always hang up on cold calls.

Why do people even entertain the idea that such schemes and calls will make them money....well probably for the same reasons people put money into Woodford funds and legitimately speculate on shares; they think they can make some easy money. The best way to make money is to earn it , the next is to reduce your spending, and then last of all comes investing and the best way to do that is DIY in solid funds that don’t indulge in speculation.

iglad

bostonerimus wrote: »

Always hang up on cold calls.

Why do people even entertain the idea that such schemes and calls will make them money....well probably for the same reasons people put money into Woodford funds and legitimately speculate on shares; they think they can make some easy money. The best way to make money is to earn it , the next is to reduce your spending, and then last of all comes investing and the best way to do that is DIY in solid funds that don’t indulge in speculation.

A bit harsh on the Woodford investors many of whom were misled by their IFA's, also they did no research.

worried_jim

Was it Jordan Belfort calling?