EX-CORUS SHAREHOLDERS BEWARE OF INVESTMENT SCAMS
I didn’t actually make a stock market killing when Corus was sold. As an ex-employee my shares were worth £360 at the time of sale. Nor did I think the odd phone calls from people trying to sell me land, or financial services were connected to the sale. But then I got a letter offering a free report on Corus.As I threw it in the bin I was kind of half listening to a Radio 4 programme on ‘boiler room’ scams. These are basically fraudulent outfits that sell dodgy investments, operating from a post box and phone lines. What really got my attention was that the firm being mentioned was on the letterhead I had just binned! One way they try and get their foot through the door is by offering ‘free’ reports, which then seemingly gives them the right to contact you direct for the hard sell. Typically these are overseas based, who target UK shareholders, offering to sell what often turns out to be worthless or high risk shares, such as ‘penny shares’. It seems they had got my name from the Corus shareholders list.
A 2006 survey by the Financial Services Authority (FSA) has reported that the average amount lost by investors is £20,000.It was not just novice investors who had been duped: many of the victims had been successfully investing for years. These salespeople can be very persistent and persuavive.To be honest I was momentarily tempted to send for the ‘free’ report on Corus-and where might that have led? Has any ex-shareholder had similar correspondence?
If you do receive any unsolicited investment advice:
1.If it’s a phone call get the correct name of the individual speaking and the organisation and make a record of any other information they give you,e.g telephone number,address,ect.If you are registered not to receive sales calls, then it may well be from outside the European Union ( not covered by the Data Protection Act)
Personally I just say I’m not interested and put the phone down. Again, sending away for a ‘free’ report may be seen as soliciting their advice and open you up to their hard sell.
2. Check that they are properly authorised by the FSA before getting involved. You can check at www.fsa.gov.uk/register
3. The FSA also maintain on its website a list of unauthorised overseas firms that have targeted UK investors. If you deal with an unauthorised firm you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FSA can be contacted via an online form at
www.fsa.gov/uk/pages/doing/regulated/law/alerts/overseas.shtml
If you don’t have access to the internet their phone number is 0845 606 1234
More detailed information on the above can be found on the FSA website www.fsa.gov.uk/consumer/