The administrators of SVS Securities today warned clients of the UK failed broker about persons that approach them, claiming that they can help them refund their investments. Liquidators from Leonard Curtis said investors should not be lulled into false communications trying to usurp its identity to defraud them in a recovery scam, in which individuals are asked to pay a fee upfront before they receive any proceeds.
The uptick in scammers activities comes shortly after a plan for distributing the assets of SVS Securities was submitted to win court approval, opening the way for payments to investors later this year.
Clients of SVS Securities are expected to access their fund starting from mid-July 2020, pending the court approval. The administrator said in March that other than a very small number of exceptions, the SVS clients are expected to get a ‘full return’ of their cash after they secured around £25 million of client money.
The administrators’ notice further states that some clients received “unauthorised and fraudulent correspondence,” including telephone calls and emails, from parties claiming to be representatives of the company. The fraudsters also tried to gain information from clients, including account details and the identity of their SIPP provider, promising to secure the early transfer of their money from another provider.
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A common type of fraud
“The appropriate authorities have been contacted and further action is being taken in respect of any parties identified as sending fraudulent communications to clients of the Company,” they added.
This type of activity is typical of the fraud mechanism known as a ‘recovery room.’ Although the regulators could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.
While there are many variations of these tactics, the refunding scams are simply defrauding the victims one more time.
They use a variety of lies to add credibility to their pitch, and once the victim shows interest, a series of official-looking documents are sent to assure the investor that money is waiting in an account and can be recovered for a fee.
In addition, SVS administrator Leonard Curtis Recovery gives official consultations via phone, fax, online form, or by post with the publicly announced contact details on its website.