Post by soonerlew on Nov 1, 2007 6:56:01 GMT -5
sandi66
Global Moderator
Boiler room rings up the wrong target
« Thread Started on Today at 5:26am »
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November 1, 2007
A salesman working for an alleged boiler room scam based in Atlanta picked the wrong potential customer when he dialled a residential phone number in Canada and reached the head of enforcement for the New Brunswick Securities Commission.
When Jake van der Laan picked up the phone earlier this summer, he was offered a chance to invest in unleaded gasoline options that would earn him a 300-per-cent return within three months.
He was also told he could expect to make a profit of $75,000 on a $10,000 initial investment.
Skeptical about the pitch, Mr. van der Laan feigned interest and collected evidence for an investigation, recording details about his purported opportunity to control 42,000 gallons of unleaded gasoline and earn $420 per option for each 1-cent increase in gasoline prices.
"It was a surprise, but he played along," said his boss, Rick Hancox, who is executive director of the provincial regulator.
The evidence was critical not only for a case launched by the New Brunswick regulator, but also for an investigation by the U.S. Commodity Futures Trading Commission (CFTC), which announced yesterday it has filed a case in a Georgia court against the company.
"He got the call at home and played along and continued to do so," Mr. Hancox said. "That helped our case with the first-hand exposure of what was going on."
And what happened when the salesman learned who his customer really was? Mr. Hancox said they never found out.
"Once we sent them the notice of hearing, the calls stopped," he said.
The CFTC said yesterday that it has charged Saxon Financial Services Inc. - which is unrelated to a similarly named Canadian company - with luring Canadians and Europeans to invest in fraudulent oil, gas and foreign currency option contracts, including unleaded gasoline options.
"Contrary to Saxon Financial's repeated claims of huge profit potential and limited risks, the vast majority of Saxon Financial customers typically lose most if not all of their investment," the CFTC alleged in its court filing.
None of the allegations in the filing have been proved.
The CFTC court filing does not identify Mr. van der Laan by name, but outlines in detail the list of allegedly fraudulent claims that were made to a Canadian regulator who was posing as a customer.
Saxon Financial is unrelated to Canadian mutual fund company Saxon Financial Inc. of Toronto, which has posted a warning on its website after receiving numerous inquiries from victims. Chief financial officer Mel Gabel said yesterday that the salespeople have not claimed to be from his company, but have chosen a name so similar that customers would think it was his firm.
"Clearly in trying to make inroads with the clients, they were playing on the goodwill associated with our good name," he said.
New Brunswick is one of five provincial securities commissions that issued cease-trade orders against the Atlanta-based company over the summer to try to stop sales of the securities in Canada.
The Saskatchewan Financial Services Commission took the lead in launching the initial Canadian investigation after receiving complaints from Saskatchewan residents that salespeople were aggressively selling gasoline and currency contracts using telephone and e-mail pitches, said enforcement head Ed Rodonets.
The CFTC alleges at least 100 victims in Canada and Europe were targeted, although Mr. Rodonets says most of the victims appear to be Canadian. The complaint alleges the fraud began in July, 2006, and is continuing.
He said his commission is unaware of new victims being targeted in the case, but he knows former victims have continued to get phone calls.
Mr. Rodonets said investors receiving any sort of telephone solicitations for investment should contact their provincial securities regulator to check whether the deal is legitimate before sending money.
The CFTC, meanwhile, has asked the court in Georgia to impose a permanent injunction on Saxon, order restitution to defrauded customers, and to impose a monetary penalty on the company.
www.theglobeandmail.com/servlet/story/LAC.20071101.RSAXON01/TPStory/Business
Love it!!!!!
camrhon.proboards102.com/index.cgi?board=safe&action=display&thread=1193912790
Global Moderator
Boiler room rings up the wrong target
« Thread Started on Today at 5:26am »
--------------------------------------------------------------------------------
November 1, 2007
A salesman working for an alleged boiler room scam based in Atlanta picked the wrong potential customer when he dialled a residential phone number in Canada and reached the head of enforcement for the New Brunswick Securities Commission.
When Jake van der Laan picked up the phone earlier this summer, he was offered a chance to invest in unleaded gasoline options that would earn him a 300-per-cent return within three months.
He was also told he could expect to make a profit of $75,000 on a $10,000 initial investment.
Skeptical about the pitch, Mr. van der Laan feigned interest and collected evidence for an investigation, recording details about his purported opportunity to control 42,000 gallons of unleaded gasoline and earn $420 per option for each 1-cent increase in gasoline prices.
"It was a surprise, but he played along," said his boss, Rick Hancox, who is executive director of the provincial regulator.
The evidence was critical not only for a case launched by the New Brunswick regulator, but also for an investigation by the U.S. Commodity Futures Trading Commission (CFTC), which announced yesterday it has filed a case in a Georgia court against the company.
"He got the call at home and played along and continued to do so," Mr. Hancox said. "That helped our case with the first-hand exposure of what was going on."
And what happened when the salesman learned who his customer really was? Mr. Hancox said they never found out.
"Once we sent them the notice of hearing, the calls stopped," he said.
The CFTC said yesterday that it has charged Saxon Financial Services Inc. - which is unrelated to a similarly named Canadian company - with luring Canadians and Europeans to invest in fraudulent oil, gas and foreign currency option contracts, including unleaded gasoline options.
"Contrary to Saxon Financial's repeated claims of huge profit potential and limited risks, the vast majority of Saxon Financial customers typically lose most if not all of their investment," the CFTC alleged in its court filing.
None of the allegations in the filing have been proved.
The CFTC court filing does not identify Mr. van der Laan by name, but outlines in detail the list of allegedly fraudulent claims that were made to a Canadian regulator who was posing as a customer.
Saxon Financial is unrelated to Canadian mutual fund company Saxon Financial Inc. of Toronto, which has posted a warning on its website after receiving numerous inquiries from victims. Chief financial officer Mel Gabel said yesterday that the salespeople have not claimed to be from his company, but have chosen a name so similar that customers would think it was his firm.
"Clearly in trying to make inroads with the clients, they were playing on the goodwill associated with our good name," he said.
New Brunswick is one of five provincial securities commissions that issued cease-trade orders against the Atlanta-based company over the summer to try to stop sales of the securities in Canada.
The Saskatchewan Financial Services Commission took the lead in launching the initial Canadian investigation after receiving complaints from Saskatchewan residents that salespeople were aggressively selling gasoline and currency contracts using telephone and e-mail pitches, said enforcement head Ed Rodonets.
The CFTC alleges at least 100 victims in Canada and Europe were targeted, although Mr. Rodonets says most of the victims appear to be Canadian. The complaint alleges the fraud began in July, 2006, and is continuing.
He said his commission is unaware of new victims being targeted in the case, but he knows former victims have continued to get phone calls.
Mr. Rodonets said investors receiving any sort of telephone solicitations for investment should contact their provincial securities regulator to check whether the deal is legitimate before sending money.
The CFTC, meanwhile, has asked the court in Georgia to impose a permanent injunction on Saxon, order restitution to defrauded customers, and to impose a monetary penalty on the company.
www.theglobeandmail.com/servlet/story/LAC.20071101.RSAXON01/TPStory/Business
Love it!!!!!
camrhon.proboards102.com/index.cgi?board=safe&action=display&thread=1193912790