Scam alert: American company calling to buy your shares in an Irish plc

Barry O'Halloran has reported in the [broken link removed]that there is a new scam doing the rounds. Boiler rooms are ringing people about potential takeovers of the companies they have invested in.

I presume that people using askaboutmoney would be alert to such scams, but has anyone been approached?

United Drug has posted a [broken link removed]about it.

The callers’ general approach has been to tell shareholders that a deal involving the company is imminent and that they are likely to be offered a substantial sum for their shares.


Once they have opened dialogue, they use the “deal” as a front to ask for bank account details, often by requesting such things as a contribution to start-up legal costs.


They generally put pressure on the people they contact to get the information that they are seeking.

Click to expand...

The Central Bank [broken link removed] is extensive, so it must be happening frequently.

United Drug Scam

Hi,
I've have been contacted by a very articulate, convincing individual with a strong american accent trying to convince me to sell my united drugs shares for 6 times their current market value.I checked out his website which was very impressive but it was only a few weeks old, despite trying to convince that he was representing an old established company.I played along until he sent me a contract seeking my bank details.When I didn't respond his daily phone calls ceased. I have kept a copy of the contract.
Regards,
Gerard Gallery

More in today's by Peter Flanagan on this topic, so it must be fairly widespread.

They are now targeting shareholders in Independent News & Media PLC and Fyffes.

Brendan

Shares Purchase Scam - INM

A company called Elliott & Laurence (Chicago USA) phoned me last week, and said they were acting as consultants to a group who intend to buy 51% of INM shares for a price way above market rate. They have a very plausable web-site and their emails & documentation are very professional. They have a phone number that works (although proven to be a mobile). It is a sophisticated scam that involves the victim signing an NDA to commit to total secrecy about the deal, lest it affects the share price etc. The carrot is a huge amount of money, but after a few days and a number of phone calls they eventually issue a contract and request a 'bond' of 3% of the total value to be lodged with a 'legal firm' - another false company. They also say that 58% of shareholders have subscribed and they only want 51%, so get in quick with the signed contract & bond payment to secure the big payoff. The scam is the Bond payment, after which they will disappear.
There is a lot of money involved. If they only get one victim for their efforts then n they will have been successful. This scam was reported in last weekends papers, and I just hope nobody falls for it.
Are there any authorities that I should report this to?

Are there any authorities that I should report this to?

Click to expand...

Hi Jospen


Some of the Irish plcs have alerted their shareholders. I don't know if Indo has . You might contact the company secretary and suggest that they alert their shareholders.

Brendan

Where are they obtaining the contact details of shareholders?

From the shareholder register which is a public document.

It was covered in the Irish Independent on Saturday.

http://www.independent.ie/business/...rators-offering-a-deal-on-shares-3024002.html

Brendan Burgess said:

From the shareholder register which is a public document.

Click to expand...

So anyone in Ireland can obtain access to a share register and personal information of shareholders i.e. addresses and phone numbers etc? I didn't know that. I know in some other Countries, access to the register or at least certain information contained in it is restricted.

The phone number is not on the share register but the name and address and the number of shares are.

eircom phone book will give them the phone number if they are listed.

Brendan

Hi, I have had a telephone call from these people this evening offering me £5-£10 for Laura Ashley Shares (worth about 21p!) Knew it must be some sort of a scam,so thought I would see what has been posted on the internet about them.

Hi,
I have had a call from a crowd calling themselves [broken link removed] with the same sort of thing. Offering to buy shares of LogicaCMG at £8-17 per share(way over the odds). They sent me a Non Disclosure Agreement re the "hostile takeover". I had a look at their website and it all looked impressive. It wasn't until they called again today and lost their cool a bit when I started asking questions about bona fides etc that I smelled the rat. BTW checked phone later, they called lots of times today so signs of desperation too.

EPF

Hi EPF

Their website is very similar to [broken link removed] so it's likely to be the same scammers behind both.

You should probably report it to the Central Bank anway.

Central Bank issues warning on unauthorised investment firms

Information Release 20 February 2012

The Central Bank of Ireland is today warning members of the public and shareholders in Irish companies about the risks of dealing with unauthorised investment firms.
It is a criminal offence for an investment firm to operate in Ireland unless it has an authorisation from the Central Bank and clients who deal with unauthorised investment firms have no recourse to the Investor Compensation Scheme.
Should members of the public receive unsolicited contact from any firm which offers services or advice in relation to the purchase or sale of shares in another company, they should check the regulatory status of such firms with the Central Bank. Any person wishing to contact the Central Bank of Ireland with information regarding such firms may telephone (01) 224 4000. This line is also available to the public to check if an investment firm is authorised. The Central Bank regularly publishes warning notices on unauthorised investment firms and the [broken link removed] of notices issued to date is available to view on its website, www.centralbank.ie.

Click to expand...

Mullen and Cheecks are cold-calling others as well.

http://www.tradersdaytrading.com/gransybabe.html

Brendan

I have had several of these calls in the past two weeks.
When they ask for the person they want to speak with,I ask them to hold on and Ill go get the person,and just leave them waiting,usually when I get back to the phone ,they have hung up.It seems to have stalled them somewhat,as it must be costing them to be left hanging on..

Just had this guy on again about a shareholding I have...for the second time! First time was before Christmas, after which I alerted AAM.

If you have the patience, just play along with them without giving them any info, and throw a curve ball no and again like
"You're in New York, yeah? What time is it there now?"

Or, in typically Irish fashion, "what part of New York are you from"?

Frustrates them no end, lol!

As any companys share register could be targeted by such a scam, PLCs should be aware of it and advise shareholders accordingly without the need for shareholders to advise of individual occurences.

dobrien64 said:

"You're in New York, yeah? What time is it there now?"

Or, in typically Irish fashion, "what part of New York are you from"?

Frustrates them no end, lol!

Click to expand...

That is brilliant. It would be great if you could record those conversations and post them on youtube

Brendan

US Address lookup

You can lookup US listed addresses on the US Postal service Website (remove the space after the // in the address below...15 posts for URL privileges!)

https:// tools.usps.com/go/ZipLookupAction_input

For Eliott and Laurence and Mullen and Cheecks the Contact addresses do not exist....but are close to real addresses, (There is a 111 E 50th ST NYC and 120 E 50th street but no number 112, and South Clark Street in Chicago only goes to Number 125)


Peter

According to RTE News, the Central Bank has issues a warning notice about Elliot and Lawrence in today's Irish Times. I can't find it on the CB website.

Apparently, they are warning about their offering of investment services. I hope that they mention the type of scam it is.

The irony of a spammer/scammer posting on a thread warning about scams!