Drake Asset Management - Second Wave Fraud

Drake Asset Management have been approaching investors
in Australia, in attempt to execute a second wave boiler room scam. By
this, I mean that they are offering to purchase stocks sold by other boiler
rooms, which are considered worthless, at a huge premium. The downside
is that an up front fee or 'bond' needs to be paid to facilitate this
transaction.

Once paid of course, the investor will never see their money again.

There is an ongoing discussion on Drake Asset Management at the Boiler Rooms UK forum.

Financial Assets Corporation - Suspicious Activity

Investors in the UK have started being called by a Company called Financial Assets Corporation. This company are operating a little differently to those boiler rooms normally highlighted on this site, because they are calling to obtain information in the first instance, rather than to try and obtain funds. The sting will undoubtedly come later.

Financial Assets Corporation are seeking details of 'non performing shares', and will email a questionnaire in order to facilitate this task.

What will happen next is anyone's guess, but it is strongly suggested that caution is exercised when dealing with these people.

An ongoing discussion is taking place on the Financial Assets Corporation at the Boiler Rooms UK forum.

Insta Trade in Amsterdam

Another boiler room, Insta Trade, is targeting investors in the UK with worthless stocks. The Insta Trade web site claims that the Company has been in existence since 1997, but the web site itself was created in October 1994, and only purchased for a year. This is not an encouraging sign if one is looking for an investment partner for the long haul.

There is an ongoing discussion on Insta Trade at the boiler rooms UK forum.

24/03/05
These guys are pressing hard. They all seem to be South Africans - probably have run other boiler rooms such as CFS International. They are calling nearly every day. One stock known to be on offer is General Components Incorporated (GCPO).

Beware!

SMI Private Equity Offering Oil and Gas Investments

SMI Private Equity, and firms like them, have in the past restricted themselves to hawking old and tired penny shares and involving themselves in second wave scams, whereby the boiler rooms offer to sell on worthless stock, for an up front fee. They will take the fee of course, and you will never see a return.

It appears that firms like SMI Private Equity are venturing into other fields, notably Oil and Gas investments, and investors need to be vigilant, especially when dealing with firms such as SMI Private Equity.

Oil and Gas has long been plagued with 'promoted' investments. A typical oil and gas fraud is to mark up the cost of the well 300 to 500%, with the Operator and/or sales firm pocketing the difference.

There is a thread on SMI Private Equity at the Boiler Rooms UK forum.

D Meredith Gray - A Secondary Scammer

A firm calling themselves Preston Winslow Yates and Associates have been approaching victims of Slender Life and Cambridge Global. Preston Winslow Yates and Associates say that they have a head office at 29/7 270 Park Ave. New York. N.Y. 1007, and also claim to work out of Hong Kong. They are saying that they have a client willing to give me $10.98 per share for what is thought to be worthless shares.

Why?

How do D Meredith Gray come into this? This transaction takes another twist, when contact is made by a third party claiming to be a representative of a US Government Bureau called 'The Central Selling Bureau' in New York, who say that in order to sell the shares one must pay $0.69 per share to a Transfer agent, D Meredith Gray, of 245 Park Ave. New York N.Y. 10005, to remove the restrictions. They then call and say that on top of this there is a charge of $1.28 to remove the 'non removable warrant A'.

There is more on this boiler room here.

On ongoing discussion is taking place at the boiler rooms UK forum.