Price Stone / Atlantic Capital Partners GMBH Overseas
Boiler Room Stock Scam Operation
05/07 - (Times UK ) A huge "boiler room" share fraud
with as many as 10,000 suspected victims is being investigated
by the City of London Police.
The force revealed yesterday that it was inquiring into a German-based
scam that offered shares in two allegedly fraudulent companies.
More than 2,000 people are reported to have been duped into buying
shares in the "businesses" – the Price Stone Group
and Atlantic Capital Partners GMBH.
The police are urging victims to contact them, believing that
as many as 10,000 people could have been tricked.
The German investigation is part of a nationwide operation, funded
by agencies including the Serious Organised Crime Agency, to catch
those behind the growing threat of investment scams.
Victims are cold-called by fake stockbrokers who use high-pressure
sales techniques to persuade them to buy shares in worthless, nonexistent
or near-bankrupt companies.
Often, the fraudsters will claim that the fake company is preparing
to unveil a major discovery that will send its shares surging.
The "boiler room" is a rented space from which salespeople
telephone hundreds of people a day. The targets are often obtained
from shareholder registers at Companies House.
Some of the frauds already uncovered by the police have been bringing
in as much as £600,000 a month.
So far this year, four British firms that were helping overseas
boiler rooms have been closed by the Financial Services Authority.
The City watchdog said that it receives more than 100 calls a
month from victims of the scams.
Research by the FSA last year found that one quarter of victims
were "groomed" for six months before being persuaded
to hand over money. The average amount lost was £20,000.
City Police want to trace anyone who has been a victim of these
It is asking anyone who may have purchased shares from "The
Price Stone Group" or "Atlantic Capital Partners GMBH" to
call its economic crime department on 020 7601 6999 or email the
Operation Archway team at firstname.lastname@example.org. police.uk