Boiler room fraud defence - share dealing

Boiler room fraud requires expert legal advice from a serious fraud lawyer. Boiler room fraud offences are often under scrutiny by the Financial Conduct Authority. This can lead to prosecutions being brought to ensure that justice is being seen to be done. At Stephensons we find that this scrutiny often taints legitimate professionals and that ordinary stockbrokers, bankers and others involved in financial services can find themselves embroiled in such accusations. We are experienced in representing professionals in this area and understand the devastation such investigations can cause. Your reputation can be destroyed even if you are ultimately acquitted. 

Speak to a member of our experienced team of serious fraud lawyers on 0203 816 1098 or complete our online enquiry form and we will contact you directly to discuss your requirements.

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What is boiler room fraud?

A boiler room fraud is essentially a serious form of unlicensed share dealing. Share dealing is a regulated activity under the Financial Services and Markets Act 2000. The term boiler room refers to a busy centre of activity. This would usually be a room of salesmen using telephone cold calling to commit fraud by selling worthless or non-existent shares. The salesmen will often pretend they are stockbrokers and persuade investors to part with their money to buy shares in non-existent, worthless or near bankrupt companies. Often tactics are employed to try and intimidate those changing their minds by claiming they have made a binding verbal contract. Legal action is often threatened. 

Often people can be accused of this type of fraud when they themselves have simply been recruited by the real fraudsters without knowing about the fraud that is being perpetrated. The sales team sometimes have no idea of the scam.

The most common charge used for this fraud is conspiracy to defraud. A conspiracy is simply an agreement and here it means an agreement to defraud someone. The important thing for us to remember is that it is for the prosecution to show dishonesty. If the prosecution cannot prove that then you cannot be convicted.

Often these large scale investment frauds have international elements. It is common to have links to Spain and the USA in these cases. The proceeds of crime can often be traced overseas. Increasingly the Financial Conduct Authority (FCA) and City of London Police are using their powers to freeze assets at an early stage with restraint orders. This can be devastating on a business or an individual and you will need assistance to challenge this if you become the subject of one. 

Our experienced team of serious fraud lawyers has the expertise and knowledge to look at the required level of detail to defend you. Contact our expert fraud solicitors on 0203 816 1098 or complete our online enquiry form.

Acquittal for man accused of boiler room fraud

Our business crime team secured the acquittal of a man who was facing serious boiler room fraud charges, which would have incurred a lengthy prison sentence if convicted.

The man, who was one of three defendants, was charged with conspiracy to defraud. The prosecution alleged the complainant had been defrauded over several years as part of a highly sophisticated ‘boiler room’ fraud operation. In boiler room frauds, a broker, usually operating from an overseas firm, will cold call a potential investor and propose they buy shares in a particular company.

The complainant in this case had been persuaded to invest in shares. The complainant did not receive any share certificates and later found out that the company he had purportedly purchased shares in did not exist. The prosecution alleged the defendants conspired together to defraud the complainant of £350,000.

Throughout the case, our client denied his involvement in the conspiracy to defraud.

The case recently went to trial at Shrewsbury Crown Court and our client, together with one other co-defendant, was found not guilty by the jury. 

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As an award-winning top 150 law firm, with over 450 staff based in offices across the country, you're never far from the advice you need.