02 May 2008
Brewin Dolphin, the UK’s largest independent provider of
private client investment management and financial planning
services, has today warned investors to be on their guard against
so-called ‘boiler room’ fraud following revelations by
BBC’s Working Lunch programme that more than 500 Spanish
could be currently targeting the UK.
Boiler rooms, small companies who use high-pressure sales
techniques to encourage the public to buy shares that often turn
out to be of little or no value, have become an increasing problem
in recent years.
Brewin Dolphin is reminding investors of the benefits of
transferring shares to nominee accounts, which removes their name
from the public domain, making them invisible to fraudsters.
Charlotte Black, Director of Group Corporate Affairs, Brewin
Dolphin said: “It is crucial investors ensure they only trade
through companies that are fully compliant with FSA regulations.
Investors should only accept financial advice or enter into
transactions with qualified financial advisers. With a bewildering
array of investment options available, investors should seek
professional advice to ensure the financial products selected are
tailored to their own needs and risk profile.”
Brewin Dolphin has warned in the past about the dangers of
‘boiler rooms’, and indeed, how to avoid falling foul
to fraudulent activity. Its legal department works closely with the
Financial Services Authority (FSA) to prevent clients, and the
industry, from becoming victims to financial fraud.
-Ends-
For more information, contact Damian Kerr on 0845 213 3026 or
damian.kerr@brewin.co.uk
About ‘Boiler Rooms’:
The objective of boiler rooms is to sell shares that either have no
value, or if they do have value there is most probably a lock-in
period or the price will be vastly inflated. The criminals steal
funds through making a high pressured cold call to the investor,
whose details are often obtained from shareholder registers at the
Companies House. The unsuspecting investor is persuaded into
parting with their hard-earned money, with the belief that they are
on the verge of seeing their shares rocket in value. In fact, the
laundered money goes directly into the pockets of the
fraudsters.
One of the most common scams is the request for assistance in
transferring foreign money (advanced fee fraud). All that is
required of you is the use of your bank account, into which
impressively large sums of money will be transferred and then
withdrawn, leaving behind a residue of between 10% and 20% of the
original sum. In reality what actually happens is that, just before
the transfer takes place, you will be asked to pay an advance fee
in order to set the deal up and prove your worth. If you pay, you
will a) never see your money again, and b) receive a further
demand(s) for cash. If you do not cooperate at this stage, your
bank account will be emptied.
About Brewin Dolphin
Brewin Dolphin Limited ("BD") is the principal operating company of
Brewin Dolphin Holdings PLC which is listed on the London Stock
Exchange. BD is authorised and regulated by the Financial Services
Authority and is a member of the London Stock Exchange.
BD is the largest independent private client investment manager
in the UK. The Group manages £21.6 billion of funds for over
120,000 clients, and of this £10.7 billion is on a
discretionary basis. BD has 39 offices and is corporate adviser to
131 corporate and 100 institutional clients. Brewin Dolphin
Investment Banking was voted AIM Broker of the Year
2007.1
The Group provides complete investment management for private
investors, charities and pension funds and trades as:
Brewin Dolphin in England, Wales and the Channel Islands
Bell Lawrie in Scotland and Northern Ireland
Stocktrade is the BD Execution-Only division.
www.stocktrade.co.uk
Please see Media Centre section on
www.brewindolphin.co.uk
for details and photos of all commentators and analysts throughout
the BD Group.
1. Brewin Dolphin Investment Banking was voted
Broker of the Year 2007 at the Investors Chronicle AIM Investment
Awards, in association with the FT.