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Zoey_JD, Criminal attorney
Category: Fraud Examiner
Satisfied Customers: 23584
Experience:  Active member of the NYS bar since 1989
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I am in contact with Miss Zoey. I got contact with an

Customer Question

I am in contact with Miss Zoey.
I got contact with an investment company that looks serious: World capital group Marunouchi Trust tower 1-8-3 Marunouchi Chiyoda-ku Tokyo Japan tel 0081 345 795 605. I have nearly worthless shares of an US company TLAG. The precited company proposes to buy these shares for a client in order to lower the taxes to pay on their benefit. Do you find a negative thing about this Japan based company ? They ask to become a client by acquiring shares for 5000 $ via a certified broker.
I am in holiday for 2 weeks from now on - so the answer is not urgent - I am back begin August.regards
Submitted: 4 months ago.
Category: Fraud Examiner
Expert:  Zoey_JD replied 4 months ago.

Hello agaiin.

ANY TIME you get an unsolicited offer from a foreign broker alerting you to a so-called lucrative investment it is a boiler room investment fraud. This is NOT what legitimate brokers do. It is unlawful for them to make unsolicited contact in foreign countries except under very special circumstances.

The boiler room scam comes in two versions:

I know that you probably experienced the first version already. This is when are told about a time-sensitive investment opportunity and pressured to make a very quick decision. So you buy shares, wire the firm your money and by the time you realize a year or so later you've been taken advantage of your foreign "broker" has disappeared into thin air and your money along with him. You end up either with worthless shares or with nothiing at all.

It's the second version for which you've been approached now. Here, a foreign investment company claims to be looking to buy up your old worthless stock at a tremendous profit. The figures the agent bounces around are impressive and they claim that the offer will quickly disappear. You don't get much time to dwell on this if you want to make this deal which promises to be very lucrative for you. They are hoping you will be so motivated to recoup your previous losses that you will jump at the opportunity, even though it will cost you a large up front fee to complete the deal, because they tell you that there is money you must pay out first from your own pocket before your shares can be released for sale.

The fact is that you never have to pay money out of pocket in order to sell your shares. Any up front fee, no matter how logical the reason may seem to you, is just a lie that sounds good enough to fool the uninitiated, but it simply isn't true.

All international trading is government regulated and for a Hong Kong broker to be able to make you an offering in Belgium, it must be registered with the Japan's financial regulatory authority and authorized to trade in Belgium by yours. Without that, it's operating outside of the law, and you'd be walking right into an investment fraud.

Pay them and you will lose a great deal of money and get nothing.

The Japanese financial regulatory authority warns about these cold callers and has World Capital on their list of companies to avoid because they are NOT approved to trade in Japan. That means they can't trade anywhere else either.

Cease all contact with these and any other foreign firms that make unsolicited calls or send unsolicited letters and emails to seek your business. They are all frauds. Send no money. You will lose it

Enjoy your holiday!

Expert:  Zoey_JD replied 4 months ago.

Just checking in to see if you need more help or any clarification of my answer. If so, please reply here on this question thread.