FSMA Issues Warning Against Eight Firms Involved in Boiler Room Scams

The companies don't have legal authorisation to offer financial services to investors within the country.

The Financial Services And Markets Authority (FSMA), the Belgian financial regulator, has sounded a new warning against fraud in the country. The latest warning involves the addition of eight new companies to the list of companies involved in this boiler room scam.

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In its release, the regulator has listed the names of the companies involved:

  • Akanagi Group
  • Ashton Whiteley
  • ATB Holdings
  • Fairway Capital Investments
  • Nagaharu Global
  • Novature Group
  • Onex Busan Financial
  • Pacific Chiba Trust

Boiler room scams involve contacting members of the public, unsolicited, usually by telephone, to sell shares or other financial products. The customers are lured into making initially small investments that are designed to appear profitable. Gradually, they are forced to increase the investment amounts.

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When the customer asks for his money to be returned, he will find that this is impossible without making additional payments, and then the investments start to lose money. Operators typically target individuals who are not well-versed with the financial markets and have a high probability of falling into the fraudsters’ nets.

The FSMA has also recommended steps to be followed by investors to mitigate the risk of falling victim to boiler room operators. Investors are advised to verify the identity of the company offering the financial services, including its place of incorporation and registration details. Companies offering financial services to investors have to hold authorisation with the regulator of that country. Companies registered in foreign lands are difficult to pursue in the event of any disputes.

 

 

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