Friday, January 28, 2005

SEC files charges against boiler rooms

The Securities and Exchange Commission ("SEC") has filed civil fraud charges in federal court in the Southern District of Florida against six boiler room operations in connection with their operation of a series of recovery room advance-fee schemes directed primarily at previously victimized investors from a number of countries, including Australia, Belgium, Greece, Hong Kong, Malaysia, New Zealand, Norway, Singapore, South Africa, Sweden and the United Kingdom. A "recovery room advance fee" scheme is a fraud wherein the perpetrators prey on investors who have lost money on particular stocks they purchased in the past. The perpetrators purport to offer these investors valuable assets in exchange for their nonperforming stocks but insist that the investors first pay an "advance fee."

More Stock Fraud

No comments: