A fraud which targets people who owns shares in public companies ranging from major football clubs to relatively obscure IT firms is far more rampant than I feared.
Last week I told how a shareholder in a UK oil and gas company was conned out of £142,000 by crooks posing as brokers wanting to buy his holding, you can read that story here .
It has prompted more of you to get in touch with tales of the same fraud.
Vinny Maloney, of Rochdale, Gtr Manchester, asked for my advice after being offered £17 per share for his holding in IT company Network Technology.
“I had a phone call from a company wanting to buy some shares that I own,” he told me. “I think it might be a scam. Please could you advise?”
He was told that there’s a secret buyer trying to increase his stake to 51% as part of a hostile takeover, a standard lie used by crooks pushing this scam.
Equally standard is the non-disclosure agreement Vinny was sent – he did the right thing by disclosing it to me. These agreements are designed from stopping intending victims from getting independent advice.
If Vinny had proceeded he would have been hit with a series of demands for fees to cover made-up costs such as insurance and taxes and wouldn’t get a penny for his shares.
The supposed brokers who phoned him call themselves Baxter Ford Associates of New York.
Their website, with wonky stock pictures, is barely a month old but boasts they have “forty-five years of defining perfection in every merger and acquisition transaction”.
I phoned them but they refused to give basic details such as their company registration number.
Another reader tells me he’s been called by a broker acting for someone trying to acquire 51% of Tottenham Hotspur in another supposed secret hostile takeover.
He’s been offered up to £15 per share – a ludicrous price since they’re currently worth around 39p.
“Maybe I am completely wrong and the whole thing is genuine,” said the fan, Peter Souber.
Your instinct is spot on Peter, it’s a scam.
A chap in a care home was approached by some out-of-date shysters claiming to want to buy his shares in Cable and Wireless plc, which delisted from the stock exchange in 2010.
He was promised £53,000, but first had to pay a 10% fee. His brother, who has power of attorney, thankfully told the fraudsters to “get lost”.
Reader Clive Brown was contacted by supposed New York broker McIntyre Capital Group, wanting to buy his shares in Reach plc, the Mirror’s owner.
The Financial Conduct Authority has issued a warning about McIntyre Capital: "This firm is not authorised by us and is targeting people in the UK. We strongly advise you to only deal with financial firms that are authorised by us."
“They told me it was a hostile takeover,” said Clive, who was offered £8 per share despite the price being around 77p.
“That would make me about £24,000 but in the next call they asked me to pay £2,700 to an insurance company. I declined and didn't pay anything.”
Good decision.
