Seven arrests in FSA operation on boiler rooms
FSA/PN/059/2009
6 May 2009
The Financial Services Authority (FSA), in close cooperation with the City of London Police Economic Crime Directorate and with assistance from Hertfordshire Constabulary Fraud Squad, earlier today conducted a major operation to search a number of premises in Surrey, West Sussex, London and Hertfordshire.
The investigation, which is being conducted with assistance from Eurojust, Europol, the anti-money laundering unit of the Malta Police, and several European law enforcement agencies, focuses on share fraud and boiler room activity in the United Kingdom and Europe which has taken approximately £28 million of victims' funds. Six males and one female have been arrested in the south of England.
The FSA is working in conjunction with the Crown Prosecution Service Fraud Prosecution Service.
The FSA urges consumers to hang up on any unsolicited cold calls from parties attempting to sell shares. For more information about share scams (including boiler rooms), tips on how consumers can protect themselves and warning lists of firms the FSA know operate in this way see the Moneymadeclear website. The website also has an online reporting form for people who believe they have been the victim of share fraud and boiler room activity. The FSA also operates a consumer contact centre which can be reached on 0300 500 5000. The City of London police website also has valuable information on boiler room and share fraud activity.
Notes for editors
- The FSA has been involved in cracking down on boiler rooms for a number of years. More information.
- Margaret Cole, FSA enforcement director, described the FSA’s work to combat financial crime including share frauds and scams in her speech to the FSA Financial Conference on 27 April 2009.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.