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Issue 752
14 - 20 march 2014
Slick ‘City’ scam alarm by Jack Troughton
John with his medals
Tonic for the troops By Jack Troughton Youngsters in Year Six at the Laude Lady Elizabeth School heard from a former fighter pilot John McMullen, a veteran of the Second World War, and how he flew the legendary Spitfire. Read the full story on page 8.
EXPERIENCED INVESTOR Frank Roberts is warning people of a “sophisticated” fraud gang who swindled him out of a fortune in an elaborate financial sting. The businessman – who quit the rat race for a new life in Spain with his family – believed he was investing for long term security with a highly reputable City of London finance house. However, he was dealing with a ghost ‘mirror’ fraudulent company, complete with copied genuine paperwork and the stolen identities of real brokers and fund managers, including their trading registration numbers. Speaking at his home in Ontinyent, he said British and Spanish police were now hunting criminals that apparently have links to Malaga after the scam was discovered last week. And the married father-of-three told RTN: “We are down many tens of thousands of pounds. What money we have has to last us – it is very painful when it goes missing.” Ironically, as the con was unearthed, Spanish and UK police were making over 110 arrests on a £15 million international shares scam that defrauded around 1,000 people. A so-called ‘boiler-room’ fraud involves selling worthless or non-existent shares.
Conmen target people who have already invested in the stock market and bombard them with a high-pressure sales pitch offering high returns. It is thought such stings cost victims, many of them elderly, more than £240 million a year. But Frank said far from being pressured, he spoke at length with bogus fund manager ‘Mark’ and boss ‘David’. He added: “It was not hard sell because he was selling to a knowledgeable audience, someone who had capital, someone into stocks and shares. Almost all his work was done. “But he was still putting a hook out there and waiting for you to bite – and if you do it enough, you get enough fish. If I am just one victim, there must be hundreds more that he has hooked in the same way.” Frank, who took early retirement from the information technology industry, said the family were looking to find better returns on capital and he put out some “feelers” on the internet, giving some basic details. He was first contacted by a company who already look after an investment portfolio for the family and some months later by Mark – who claimed to be working for the world-renowned City firm. Continued on page 3