Need help with buying private shares of a company

  • Thread starter thenewman123
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thenewman123

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Over e-mail communication I am trying to buy small investment of shares. This company will be going public soon but I am being offered to buy private shares.

I am not 100% aware of the process that is supposed to be done. Although the man I am speaking with says that his boss will not allow me to buy this small amount of shares so he told me that he will sell me a small amount of his shares.

He now tells me to send him a check with $ value of the shares, with it a note with my name, SS # , address , phone, and email address.

I am a bit scared to do this because he might just take my check and never give me my shares.

I was thinking there has to be paperwork involved in this no matter how many shares I want to buy? Correct?

Any advice will be greatly appreciated, thank you!
 
This is a very common scam. They sell you worthless shares of a company which is supposed to go public. You will probably get the shares but they will be worthless and you will be unable to sell them.

You should only buy shares in a private company where you know the people running it well and you trust them.

How did you come across this opportunity by the way?

Brendan
 
Brendan said:
This is a very common scam. They sell you worthless shares of a company which is supposed to go public. You will probably get the shares but they will be worthless and you will be unable to sell them.

You should only buy shares in a private company where you know the people running it well and you trust them.

How did you come across this opportunity by the way?

Brendan
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After I send them a check what am I supposed to wait for? Paper work or what?

I emailed them a while ago asking if they have stock and they told me they are private, but now one of their founders has sold a small percentage of stock in order for his family to afford expenses. So now they are offering me this small block of stock.
 
Sounds very dodgy to me too. Avoid unless you have independent verification that everything is above board. Which I doubt.
 
thenewman123 said:
why is that mad
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Why are you investing in this company? If you are investing in a private company then surely you would at least meet the owners/principals and not just conduct the correspondence on email? Unless you have money to burn/speculate and you are taking a very high risk gamble or something?
 
If you're engaged in email communication with this "entity" why would you need to send your email address.
You're obviously American or Canadian given the words you use (SS#, check).
Forgive me if I'm wrong, but I believe this thread is an attempt to infiltrate AAM and perhaps commit some type of fraud. I suggest a moderator look at it very closely. Something does not add up here.
 
Andy Doof said:
If you're engaged in email communication with this "entity" why would you need to send your email address.
You're obviously American or Canadian given the words you use (SS#, check).
Forgive me if I'm wrong, but I believe this thread is an attempt to infiltrate AAM and perhaps commit some type of fraud. I suggest a moderator look at it very closely. Something does not add up here.
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It's a private company. I sent my email address so they could contact me back...and yes I'm American. I was just asking for advice on how private investments are made. I dont want to send the guy( from the company )a check and not get any shares.
 
thenewman123 said:
It's a private company. I sent my email address so they could contact me back...and yes I'm American. I was just asking for advice on how private investments are made. I dont want to send the guy( from the company )a check and not get any shares.
Click to expand...


They are certainly not made the way you are describing them. Have you even seen any basic legal docs such as articles of association of the company. What do these 'shares' entitle you to? Certainly sounds like a scam.
 
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