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27 March 2007
News release
Telephone Share Fraudsters Offering Options Deals
The Securities Commission warns the public about another innovative way cold callers have been conning people with fake investment deals.
These purported "brokers" are now offering people commodity and futures options traded on an options exchange. A firm calling itself Metro Financials has been calling Australians with offers of commodities and currency traded on the American Futures and Options Exchange (AFOEX). They also claim to be regulated by the American Futures and Options Trading Commission (AFTOC) in the United States (US) and encourage people to visit the website of these organisations.
In reality neither the exchange nor the regulator exists. The Australian Securities and Investments Commission (ASIC) is investigating the matter with the Commercial Affairs Department of the Singapore Police Force and the Commodity Futures Trading Commission (CFTC) in the US.
The CFTC has also filed charges against nine entities for fraudulently soliciting investors worldwide. Their names are included in the attached release from the CFTC.
"People should not respond to unsolicited offers of investments over the phone. Hanging up immediately on these callers is the best response. Talking to them gives them more opportunity to persuade you to send money", says Securities Commission Director of Market Supervision, John Mulry.
"Futures dealers have to be authorised by the Commission to deal in futures contracts in New Zealand. Investors must make sure that the dealer is authorised before considering the investment."
Names of share fraudsters who have telephoned New Zealanders are on the Commission's website www.seccom.govt.nz. To find a list of international regulators visit www.iosco.org.
View copies of statments made by ASIC and CFTC:
- ASIC Works With Singapore and the US to Stop Cold Calling Scheme Targeting Currency and Commodity Options (PDF: 58 Kb)
- U.S. Commodity Futures Trading Commission Files Four Cases and Charges Nine Entities for Fraudulently Soliciting Investors Worldwide (PDF: 33 Kb)
- Investors Should Beware of Phony Futures and Options Websites (PDF: 23 Kb)
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Contact: Poly Banerjee 04 471 7666
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