Belgium’s Financial Services and Markets Authority (FSMA) has issued a warning against the unauthorized activities of multiple boiler and recovery rooms, as well as a cloned firm, that are unlawfully targeting Belgian investors, as per an official statement.
FSMA operates as a watchdog for financial trading, securities and markets in Belgium, overseeing a variety of assets and compliance issues for traders and consumers. Today’s warning is the latest initiative in its efforts to clamp down on companies engaging in fraudulent activities.
The latest additions include:
- Aaoption / CFDStocks / Pacific Sunrise UK Ltd
- Benedict Morris / BMBOption / Log Trading Capital Ltd
- BigOption / Wirestech Limited
- Brevan Invest / Kasuar Ventures Ltd
- Capital Epargne
- CFDStocks / Pacific Sunrise UK Ltd
- City Bank CFD
- Comex Partners
- Edgedale Finance / Gold Horizen Ltd
- Finances Capital
- Financial Futures Ltd (cloned firm) / Digifirst Hungary Kft
- FMTrader / Terapad Services Ltd / FM Marketing Ltd
- Ivoryoption / Arya Group Ltd / Arianus Marketing Ltd
- London Global Markets
- Markets Central Investment
- OptionXchange / Globe & co Ltd / Sterling Consultancy Options (SC-Options)
- Swiss Capital Invest (Swiss Capitalinvest / Swiss-CapitalInvest) / Atlasreference Unipessoal LDA
The list includes companies and associations that approach victims of investment fraud claiming that, for a fee, they can help them recover the sums invested and/or the losses incurred on unlawfully operating trading platforms.
This type of activity is typical of the fraud mechanism known as a recovery room.
Filling the Gap Between Brokers, LPs, and ClientsGo to article >>
Cloned firms and boiler rooms
Some of these are cloned firms, a common type of fraud in which a firm usurps the identity of an existing authorized entity in order to give the appearance of trustworthiness or legitimacy, thereby convincing investors of its legitimacy.
The Belgium watchdog defines boiler rooms as a type of fraud that involves contacting customers unsolicited, often by telephone, offering to sell them little-known shares or exotic financial products. Although the boiler rooms often claim to be authorized service providers with professional websites and forms to fill out, they are in reality swindlers that offer fictitious or worthless shares or products.
The aforementioned companies are not authorized investment firms in Belgium. They are therefore not allowed to provide investment services in or from within the country.
Based on this, the FSMA strongly advises against responding to any offers of financial or recovery services made by the companies listed above and against transferring money to any account number they might mention.