Boiler rooms

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Posted: Thu Jan 25, 2007 4:41 pm

Do you get calls from Americans trying to get you to invest your hard earned cash in shares that they recommend?

I assume its a phone version of the constant emails that I have to delete every day.

At first I thought it very exciting that someone was calling me from New York, now I put the phone down.

AFIK they are called boiler room scams, because they will rent a cupboard or boiler room in a building with a fancy adress to give them credibility.

Baiting Guru Joined: 03 Mar 2006 Posts: 7103 Location: Yes

There's a half-decent movie with the same title, found here if you're interested.

Posted: Thu Jan 25, 2007 4:45 pm

Did you ever see the movie Matchstick Men? They do similar scams in that. Great movie by the way.

Posted: Fri Jan 26, 2007 2:08 am

They buy stock at a low price then try to get a run on the stock by convincing fools to buy it. Then sell it for a profit.

Or they will call multiple people and recommend a stock. Each group gets a different stock recommendation. Then when one of the stocks go up they call those people back and say "See I told you it was going up. You should have listened to me. Next this stock will go up." They can do this for a few rounds then convince the victim to send them money to invest in the next big winner. You know what happens after that.

Posted: Sat Jan 27, 2007 8:46 am

I've heard of them as "pump and dump" schemes. Pump up to an inflated price, then dump their stocks so they'll go back to earth. Same thing with "penny stocks", if they aren't just two different names in the first place.

Posted: Sat Jan 27, 2007 8:05 pm

I've used this scheme three times this week on check mules. I got the idea from SP who tells his scammers that he took the money, invested it in stock and he now has ten times the original check value in the bank, thank you very much and get stuffed.

I tell them that I waited until I got a fresh pump and dump email, instantly bought the stock on a margin call with all of their money and then sold it 5 hours later. Made tonnes of money and will do it again next week. I should be a multimillionaire in two weeks.

I send them a link to the highest flying stock for the day with a suggestion that they do it too if they have any brains.
Out of three, two have sic'ed the FBI on me and the third has been reduced to begging.