(October 15 – 14:20 ET) —
The North American Securities
Administrators Association is
singling out Canada as one of
several hotbeds of telemarketing
securities fraud.
Canada, along with Florida and
California, are leading the way as
operation centres for sleazy stock
touts, with the Caribbean emerging
as a new home base.
While the old-style boiler
rooms are largely a thing of the
past, NASAA says that tele-
marketers are using “rip and tear”
operations, working from home,
hotels or with cell phones in
small, hard-to-track find outlets.
They are also diversifying their
methods onto the Internet, with
direct mail and “infomercials.”
The deals are still typically
closed over the phone.
NASAA warns that senior
citizens are still most
susceptible to these schemes
because they are home to receive
calls, have money and will tolerate
cold calls. The NASAA recommends
that seniors use answering machines
and/or voice mail to screen their
calls and avoid telemarketing
touts.
Regulators are trying to crack
down on these sorts of crimes.
For example, the California
Department of Corporations is
working with a task force of
federal and local law enforcement
agencies to create a database of
investigative information on the
operations. They are planning
coordinated raids and prosecutions,
and will setup “reverse boiler
rooms” to call and warn potential
victims.
IE Staff
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