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Foreign Investment scam.

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  • 09-08-2006 2:13pm
    #1
    Archeron
    Registered Users Posts: 6,242 ✭✭✭


    Hi all,
    Just wondering about something that happened to me a few months ago.

    A girl rang to give me the "opportunity of a lifetime" at which point, alarm bells started ringing. long story short, this crown were looking for interenational investors in a company that is going public in 6 months and would offer 500% return on the investment. Normally, I wouldnt be the type to be scammed, but damn, the sales guy from this crowd was good, and I actually started to believe his patter. At the last moment, the high pressure tactics started to really bug me (he was ringing me in work every day) so I googled the name of the company, and his lawyer, and came up with lots of reports of scams associated with them, and these reports were from all over the globe. (noticably a lot from Scandinavia for some reason)
    Next day, i told the guy what I'd found, that I was not interested in speaking with him, and he said he would call me in a year to tell me how much I would have made, has I been "wise" enough to invest.

    Now today, another guy from the same company was back on the phone with the same high pressure sales tactics. I did not entertain this at all, and politely told him to take a running jump. Problem is, I fear that some people could fall for this (he wanted 15k), as it all seems perfectly legit with glossy websites, annual reports, and all the gubbins that would fool a non-investment-knowledgable person like me. Is there a place where these dodgy companies can be reported or it just a case of buyer be seriously aware? I've noticed that since the last time I googled the company name, 99% of the sites that had reference to them have now been changed. Hmmm.
    thanks for any advice.


Comments

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    #2
    blorg
    Registered Users Posts: 15,989 ✭✭✭✭blorg


    Well for a start people you don't know will rarely cold-call you with the "investment opportunity of a lifetime."


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    #3
    fintan
    Closed Accounts Posts: 647 ✭✭✭fintan


    The scam is generally known as "boiler room" or "pump and dump"

    Simple questions is, if it was such a good deal, why would they need to cold call people?

    You can also report it to the financial regulator, especially if they have sent brochures etc.


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    #4
    ircoha
    Closed Accounts Posts: 2,290 ✭✭✭ircoha


    fintan wrote:
    The scam is generally known as "boiler room" or "pump and dump"

    Simple questions is, if it was such a good deal, why would they need to cold call people?

    You can also report it to the financial regulator, especially if they have sent brochures etc.


    I agree with Fintan, report them to
    http://www.ifsra.ie/frame_main.asp?pg=cont%5Flist%2Easp%3FID%3D3&nv=%2Fconsumer%2Fcr_nav.asp


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    #5
    blorg
    Registered Users Posts: 15,989 ✭✭✭✭blorg


    fintan wrote:
    The scam is generally known as "boiler room" or "pump and dump"

    Simple questions is, if it was such a good deal, why would they need to cold call people?
    Possibly not a pump and dump if the stock is not already public, possibly more of a simple "run off with your money"? Agree with second point though.


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    #6
    VF10
    Closed Accounts Posts: 35 ✭VF10


    I've been getting emails to an old yahoo mailbox (totally junk mail central, i use this address for non secure web stuff).
    anyhow theses mails are of the form US.ABCD is currently $0.80 but will be $5 by next week..... I generally don't see these emails only once a week, by which time the stock went from $0.80 to $0.90 and back to $0.76...

    Is this a pump and dump?


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    #7
    upsfan
    Closed Accounts Posts: 77 ✭✭upsfan


    VF10 wrote:
    I've been getting emails to an old yahoo mailbox (totally junk mail central, i use this address for non secure web stuff).
    anyhow theses mails are of the form US.ABCD is currently $0.80 but will be $5 by next week..... I generally don't see these emails only once a week, by which time the stock went from $0.80 to $0.90 and back to $0.76...

    Is this a pump and dump?
    Yes, that's exactly what that is.


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    #8
    chump
    Closed Accounts Posts: 3,807 ✭✭✭chump


    There was a widely published story a few years back about a kid who was one of the first internet pump and dump brigade. He cleaned up by posting multiple times to numerous bulletin boards/usenet groups and watching the stampede.

    Anyone remember the story?

    (maybe I read it in a book :) )


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    #9
    fintan
    Closed Accounts Posts: 647 ✭✭✭fintan


    An article on the BBC site today, shows that pump and dump actually works and can give spammers a return of about 5% to 6%

    http://news.bbc.co.uk/2/hi/technology/5284618.stm

    To me 6% doesn't seem to be enough reward for the risk they are taking.

    Anyone any views?


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