Forensic Accounting
Brand Protection
Computer Forensics
Corporate Investigation

Volume 8 - No. 1                    Download PDF

In this edition of 
The Kessler Report:

Staying a Step Ahead of Stock Scams

Boiler Rooms Go
High-Tech: Online Investment Fraud

Signs You're Dealing With a Smooth Criminal

Web Monitoring Firms: Far Reaching or Far-Fetched?

Non-Compete Agreements: The Extra Step in Intellectual Property Protection

Q&A: Theft in the Workplace

Kessler's Corner:  Investment Fraud

FYI: Operation
Brand Aid

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Kessler's Corner  

While most people are not likely to fall for phony investment scams, criminals are always able to find ways to lure honest, intelligent investors into putting their money into bogus stocks.  Internet bulletin boards are overflowing with posts from angry and upset people who made one critical mistake, and put their faith in a slick-talking salesman.  Maybe this has happened to you, or perhaps you have received calls touting no-risk opportunities, "free" vacations, or other spurious offers.  The bad news is that these scams have been going on for years with a high rate of success, so it's not likely they will end any time soon.  However, the good news is that you can join the battle against these fraudsters, and perhaps help other unsuspecting investors keep their money where it belongs, and put boiler room dwellers on ice.  

You can start fighting against these scams from the moment you get a phone call or e-mail.  Remember that telemarketers are not permitted to call you before 8 a.m. or after 9 p.m. , so if you receive a call outside those time restraints, that's a tip-off to a rip-off!  Callers that use harassing, abusive tactics, offer false information, or attempt to sell worthless or phony stocks are violating federal laws, so don't hesitate to report the incident.  Try to obtain the following information:  

• The name of the caller or sender

• The name of the firm

• The date and time of the call or e-mail

• The details of the conversation or message

You should register complaints as soon as possible with the U.S. Securities and Exchange Commission (SEC), or contact the North American Securities Administrators Association (NASAA) to locate your local securities regulator.  Here is some useful information for reporting this activity:  

Securities and Exchange Commission
E-mail:  enforcement@sec.gov
Fax:  (202) 942-9634
Web:  http://www.sec.gov/complaint.shtml

NASAA
Toll-Free:  (888) 846-2722
Web:  http://www.nasaa.org

If you are located in the United Kingdom, you can contact the Metropolitan Police Fraud Alert at the following:  

Specialist Crime OCU Fraud Squad
Web:  http://www.met.police.uk/fraudalert
E-mail:  fraud.alert@met.police.uk

If the fraud you a reporting in the U.K. is in excess of £1 million or is of serious public concern, you can contact the Serious Fraud Office at:

Serious Fraud Office
Phone:  020 7239 7272 (Switchboard)
Fax:  020 7837 1689
Web:  http://www.sfo.gov.uk/cases/guidance.asp

For other locations in the European Union, you can contact the European Anti-Fraud Office at:

OLAF – European Commission
Phone:  +32-2-295.26.29
Fax:  +32-2-299.81.01
Web:  http://europa.eu.int/comm/anti_fraud

And don't forget that here in the U.S., you can tell callers to put you on their "do not call" list.  Telemarketers, whether they are legit or fraudulent, are not allowed to contact anyone who has asked to be left alone.  Should someone ignore your request and contact you again, you should promptly get in touch with one of the aforementioned organizations, as well as that firm's compliance officer (if that is possible).

Hopefully, taking these steps will help authorities to locate and prosecute these hucksters who continue to bilk good people out of their life savings, and keep them behind bars where they belong.

Don't let the bad guys pull the wool over your eyes anymore.  Help protect your fellow citizens, fight the good fight, and maybe someday these kinds of scams will be history.  

Sincerely,

Michael G. Kessler, CFE CrFA
President & CEO

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