Cold Calling Investment Scam
This notice is issued by the Financial Supervision Commission (“the Commission”) in accordance with the powers conferred upon it under Section 22 of the Financial Supervision Act 1988.
'Cold Calling Investment Scam' The Commission has been made aware of a 'cold calling' investment scam in another island jurisdiction. The background to the activity is that local residents were “cold called” by brokers from outside the jurisdiction attempting to get people to invest in the shares of small overseas companies. The value of these thinly traded shares has tended to decline with time and the investors are left stuck with them, as they are unwilling to realise a loss or are unable to sell them. There are some instances where the investors were not properly registered as the shareholders.
It has come to the Commission’s attention from another island regulator that the above investors are being contacted by a different overseas broker offering to buy their shares at attractive inflated prices. To complete the deal investors are asked to provide more money for a “refundable bond” and to supply their bank account details. This activity is likely to lead to greater financial loss with no return of the investor’s money.
The Commission advises those persons approached in this way not to make any advanced payment. If anyone has paid money in these circumstances or are approached in this way they are asked to contact the police.
Similar warnings and advice on other types of investment scams can be found on the websites of other international regulators including the Australian Securities and Investments Commission and the United States Securities and Exchange Commission.