Unfortunately many investors are still losing a lot of money to the cold calling Boiler Room scammers. The scam will work something like this -
- You'll be called out of the blue by a nice gentlemen working for a fancy sounding 'brokerage' company
- He'll try to sell you shares in a company that's about to make a fortune in a go-go industry like health care & drugs, Oil & Gas or Mining
- Returns promised will be at least 100% if not more in just a matter of months
- The salesmen are very good and will prey on the natural greed that's within all of us
- But if any money is invested it will be the last you ever see of it although many will refuse to believe their cash has been stolen
Offshore Banks Are A Problem For The Scammers
One of the main problems these scammers have is that any money invested by clients will have to be sent to an offshore bank. This makes many of the investors nervous with some smelling a rat.
Recently some of the scammers have been trying to forge links with UK 'front' companies. This means that potential investors will transfer money into a UK bank.
Damrak Group & Chesteroak Limited – Two Scam Companies
Two of these front companies are the Damrak Group and Chesteroak Ltd. Damrak has been shut down by the Fraud Squad. However, since this happened potential investors have been asked to send money to Chesteroak which is located in Oldam, Lancs.
Chesteroak is now being investigated by the Fraud squad and its bank accounts have been frozen.
The Fraud Squad are asking anyone who has contact with either of these companies to please contact them at damak@city-of-london.pnn.police.uk.
Summary
Please watch out for these cold calling Boiler Room crooks because they seem to be everywhere. If in doubt about ANYTHING use the internet to fully research who you're doing business and exactly what you're investing in.
We also strongly advise that you read some of our previous articles on these scammers and how they work (see links below) including our latest on Potential Scam Warning - Regulation S Firms - Do Your Own Diligence".
