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Crime Solicitors

Fraud victims urge others to contact FCA to prevent boiler room scams (3 March 2014)

Date: 03/03/2014
Duncan Lewis, Crime Solicitors, Fraud victims urge others to contact FCA to prevent boiler room scams

People who have fallen victim to so called “boiler room” scams are urging others to check the website of the Financial Conduct Authority (FCA) for advice before parting with any money to cold callers who offer investment opportunities.

Boiler room scams often target the elderly who may have substantial savings or equity in their homes.

The fraudsters often operate from offices which are not traceable in the UK – or may even be based overseas and outside UK jurisdiction.

A recent collaboration between UK police in London and Manchester and police forces in Spain, Serbia and Florida has resulted in dozens of boiler room scammers being arrested for fraud.

Some of the victims – mainly pensioners – have lost more than £20,000 in the frauds, which promised get-rich quick investment opportunities.

Pensioners who have seen the value of their pensions and their savings dwindle as a result of the ongoing low interest rates in the UK may have been tempted to invest in the schemes in the hope of boosting their income and maintaining their wealth.

Boiler room scams can not only involve financial investment schemes which are fraudulent – but may also involve land being offered for sale with a guarantee of being able to resell it as development land for profit.

In many cases, investors have discovered that land they purchased was fraudulently sold – or was land which would never have been granted planning permission, such as contaminated land or greenbelt land.

Last week, police raided the homes of 110 suspects thought to have swindled £15 million out of pensioners in boiler room scams involving fraudulent share investments. The network was thought to have been masterminded by fraudsters operating out of the UK.

City of London police swooped at addresses in London and Manchester, while police in Marbella, Barcelona and Madrid raided homes believed to be owned by fraudsters living on the proceeds of crime from boiler room scams.

It is reported that 850 pensioners in Britain have lost between £2,000 and £500,000 in boiler room scams – and many are now urging people who receive cold calls from people offering investments opportunities to check with the FCA before handing over any cash or re-mortgaging their homes to release investment cash.

The fraudsters appeared credible, say some of the victims – and after cold calling, sent brochures offering investments in a range of products including carbon credits, gold, rare metals and pharmaceuticals.

Police who carried out the raids last Tuesday (25/02/14) said that those arrested for fraud were found to be living millionaire lifestyles in destinations such as Marbella. Police suspect some of those arrested are also connected to serious crime such as drug dealing and gun crime.

A total of 84 arrests for boiler room scams were made in Spain, as well as 20 arrests in London, four arrests in Serbia and two in Florida.

Duncan Lewis Fraud Lawyers

Duncan Lewis fraud lawyers can advise at any stage of a fraud charge – and our crime team is available 24/7, including public holidays.

Duncan Lewis fraud lawyers can advise on charges of serious fraud and financial fraud, as well as charges of company fraud, identity fraud, visa fraud and benefit fraud.

For expert legal advice on fraud charges or representation, contact Duncan Lewis fraud lawyers on 020 7923 4020 – or dial the Duncan Lewis Emergency Hotline on 0203 7275 2036.

For urgent or out-of-hours legal advice or representation for fraud charges, contact the Duncan Lewis out-of-hours helpline on 07920 077057.


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