News release

27 April 2007

New wave of telephone share scams

A new wave of telephone share scams seems to be underway.

“The Securities Commission is getting an increased number of inquiries about offers of investments from bogus overseas brokers,” Director of Market Supervision, John Mulry says.

“They target people with small businesses and are convincing and persuasive. Hanging up on them is the best response. Talking to them gives them the opportunity to persuade people to send money. Money once sent is inevitably lost.”

The fraudsters regularly change their tactics, their names, and the countries they operate from - to avoid detection and to keep the money rolling in.

Three new bogus brokers that have called New Zealanders have been listed on the Securities Commission’s website. www.sec-com.govt.nz. They are:

• Prestige Group Limited apparently from the US;
• Brown & Company Trading Inc from Japan; and
• Deacons Lasalle from London.

To check lists of these fraudsters visit the Commission’s website www.sec-com.govt.nz and Australian Securities and Investments Commission’s website www.asic.gov.au.

If a caller is not on the list it does not mean they are genuine. All unsolicited calls should be treated with suspicion.

-Ends-

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