“Boiler room scam” warning to IQE plc
shareholders
July 2009
If you already own shares in a company, including those
traded on AIM, you may receive a call from someone offering
to buy your shares, usually at a higher price than their
market value which may sound very attractive. They will also
ask you to pay something up front, as a bond or other form
of security, which they say you'll get back if the sale
doesn't go ahead. They could also ask you to sign a form
preventing you from disclosing details of the offer.
Don't be fooled by such an approach! It's probably no more
than an advance fee scam – where you give them your money
and never hear back from them again. They can be very
persistent, phoning you many times and even sending you
documents or forms to complete.
Over the last year, many companies have become aware that
their shareholders have received unsolicited phone calls or
correspondence concerning investment matters. These are
typically from overseas based 'brokers' who target UK
shareholders. These operations are commonly known as 'boiler
rooms' and the 'brokers' can be very persistent.
Shareholders are advised to be very wary of any such
unsolicited advice.
If you receive any unsolicited investment advice:
• Make sure you get the correct name of the person and
organisation
• Check that they are properly authorised by the FSA before
getting involved
• Report the matter to the FSA either by calling 0845 606
1234 or visiting the 'Money Made Clear' section of the FSA
website
If the calls persist, hang up.
If you deal with an unauthorised firm, you will not be
eligible to receive payment under the Financial Services
Compensation Scheme. The FSA can be contacted by completing
an online form on their website.
Details of any share dealing facilities that the company endorses will be included in company mailings. More detailed information on this or similar activity can be found on the 'Money Made Clear' section of the FSA website:
http://www.moneymadeclear.fsa.gov.uk/news/scams/share_scams.html (opens in new window)