Seven people have been charged this week with conspiring to defraud investors through a series of alleged share scam operations, known as 'boiler rooms'. All are due to appear at City of London Magistrates' Court on Friday 19 March 2010. Losses to investors are believed to exceed US$100 million.
Case Outline
The SFO launched the investigation in September 2007 which focused on the activities of a series of purported share brokerage companies based in Spain between 2003 and 2007. The companies, Tresadern & Partners SL, Pricestone Group SL and Anderson McCormack SL, sold shares to UK investors, largely in restricted American stock.
None of the companies obtained authorisation from the Financial Services Authority or its Spanish equivalent, the Comision Nacional del Mercado de Valores. The regulatory authorities have posted warnings in relation to each of the companies.
It is alleged that the shares sold were in companies that had no actual or significant activity and had a falsely created market value, which resulted in over US$100 million in losses to UK investors.
The Defendants
- Daniel Gooding (aka Tresadern) DOB 28/12/1974 of Brentwood, Essex.
- Shaun Rumsey DOB 9/6/1980 of Dunmow, Essex.
- Jon Emery DOB 12/8/1977 of Romford, Essex.
- Philip Morris DOB 6/8/1975 of Biddenden, Kent.
- Ian Hughes DOB 1/8/1979 of Cardiff.
- Emma Farmer DOB 12/12/1972 of Brentwood, Essex.
- Michelle Coleman DOB 26/5/1951 of Brentwood, Essex.
Richard Alderman - Director of the Serious Fraud Office said:
"I am very pleased that we have charged another group of people for operating a boiler room scam. It is important that people never underestimate the lengths fraudsters will go to to appear convincing and I would always urge people to do their research before they make any investment.
This is yet another excellent example of what can be achieved when law enforcement agencies work together and I would like to thank the City of London Police for their support during this investigation."
Investors and witnesses
The Serious Fraud Office extends its thanks to the many investors and other witnesses who have provided information and statements which have helped with this investigation. A page has been set up on the Serious Fraud Office's web site to provide updates on the progress of this case.
Any person who believes they may have had dealings with the above companies and who has not already contacted the SFO's case team is invited to do so, preferably by e-mailing OSR@sfo.gsi.gov.uk.
Investors who believe they may be victims of the above alleged fraud and who had sent their investment funds to accounts of Solicitors firm Fox Hayes should contact the Financial Ombudsman Service (FOS) to see if they may be entitled to compensation. A link to their website can be found at: http://www.financial-ombudsman.org.uk/consumer/complaints.htm or alternatively callers can phone 0300 123 9 123.
Investors should note that the investigating agencies have found that fraudsters often share the details of victims. A regular pattern is for investors to be contacted by a new entity that claims they can de-restrict, sell shares or otherwise mitigate loss, but for a fee. Investors should be careful to establish the truth of a contact like this as it may represent what is termed a "recovery fraud", in order words a secondary advance fee scam
If you have been contacted by a company seeking to sell you shares, you may wish to check the Financial Services Authority's register of unauthorised firms using the following link; www.fsa.gov.uk/pages/Doing/Regulated/Law/Alerts
People who believe they may have been a victim of this type of fraud, should contact the Serious Fraud Office or City of London Police using the contact details below:
Serious Fraud Office
intelligenceunit@sfo.gsi.gov.uk
+44 207 239 7388
Notes for editors:
1. The Serious Fraud Office is a government department responsible for investigation and prosecuting serious and complex fraud. The SFO is headed by the Director (Richard Alderman) who exercises these powers under the superintendence of the Attorney General. These powers are derived from the Criminal Justice Act (1987).
General information in relation to boiler room frauds
A boiler room is a share fraud which usually involves companies being set up overseas by conspirators to sell shares to UK investors. By setting up overseas, the companies seek to avoid domestic regulation and the intervention of regulatory bodies.
The shares sold are often misrepresented as to value, liquidity and at times their existence. The shares will often be in overseas companies on whom little reliable information can be easily obtained by UK investors, and which in many instances are vehicles for the fraud, controlled by the conspirators.
The sales pitch can be very convincing and their arguments very persuasive, so it is important that people make extensive checks before they make any investment.
Serious Fraud Office, Elm House, 10-16 Elm Street, London, WC1X 0BJ
Press Office tel: 0207 239 7001/7001 or mobile: 07818 076 688
Main switchboard tel: 0207 239 7272
press.office@sfo.gsi.gov.uk - or via - www.sfo.gov.uk
