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Crackdown on corporate fraud boiler room scams

Published on 19 May 2010 under category: legal

More than 38,000 people have been alerted that they could be targeted by boiler room scammers, after the finance industry watchdog found a master list of potential targets.

The Financial Services Authority (FSA) has said that the list is thought to still be in use by boiler room companies abroad and in the UK.

Jonathan Phelan, the organisation's head of unauthorised business, said: "This is the biggest list we've ever recovered and by acting quickly and contacting every single person on it we're hoping we can stop people losing money."

Individuals are lured into buying near worthless shares through high-pressure tactics, and are often threatened with violence if they attempt to get their money back.

The FSA has pledged to crackdown on such activities. It recently fined the firm Atlantic Law a total of 40,000 for 'aiding' boiler rooms by signing off adverts for a company that had attracted several high profile complaints.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.