Forum Archive Index - August 2001

["Jeremy" <jeremy@electrosilk.net>]

This is an email I just received.  It shows very clearly the problems you
will have if you get rung up and offered shares.

Check out

http://fido.asic.gov.au/insurance/index.cfm-id=3664069A-8F71-11D4-A501009027
DE39A4&Method=Full&story=yes.htm as well

> I'm contacting you after this was suggested by Adam from <elided>
> I discovered through
> internet searches that you were contacted in January by a "pump and dump"
> crowd (Berkeley Samson) offering you shares in China NetTV. You were
> sensible, I was not: I believed the person pressuring me and went ahead
and
> bought these shares. It gets worse -- I then went on and purchased more
> shares in a company allegedly called The Right Solutions. In total I sent
> them around A$22,000. Add the taxes and it all totals over $26,000.
>
> It's likely you think I'm not experienced in share trading, but I have
been
> doing this for nearly 25 years with no previous bad experiences. The
> Berkeley Samson paper work and procedures all seemed legitimate. As well,
> both companies I agreed to buy shares in were NASDAQ listed, which I
> checked before sending money. As well, they were both trading at prices
> well below their 52 week maximum, suggesting reasonable chances for
upside.
> And given that China was likely to get the Olympic Games, China NetTV
> seemed a reasonable bet, as did The Right Solutions, given its health
> product range. It all appeared so reasonable...
>
> I had heard of similar scams, but these all seemed to involve non-existent
> companies. So given the overall presentation of Berkeley Samson (nice
> brochures, full-on website, paperwork that seemed appropriate, trading in
> NASDAQ listed shares etc), I really can't feel that I was totally
gullible.
>
> Of course if I had viewed the websites of relevant security commissions, I
> would have seen that Berkeley Samson (and dozens of others) were not
> registered. Even then I might not have been concerned, given that each
> country's Security Commission is only interested if a stockbroking company
> is not registered to sell shares in that country. I was not buying
> Australian shares, so the ASIC warning would probably not have prevented
me
> going ahead.
>
> Anyway, I thought I'd share this with you. I'm working closely with
> <elided> in the belief that this way the local
> police will be informed. I have of course informed ASIC, the US SEC and
the
> Thailand SEC. But apart from that, I can't really do much to get my money
> back. An expensive lesson I guess.



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