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Pacific Continental victims target of new scam

Created:
19 August 2008
Written by:
Jonathan Eley

The Financial Services Authority has warned that 'at least ten' so-called recovery firms are targeting a scam at investors who suffered following the failure of Pacific Continental. The firms are cold-calling former PacCon customers offering to buy shares or put them in touch with buyers for a fee.

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Once the fee has been paid, of course, the firm vanishes. The FSA warns that "these so called 'recovery firms', often calling from outside the UK, are not authorised by the FSA and are not permitted to approach UK consumers to promote financial services."

Pacific Continental went into liquidation in June 2007, amid complaints of mis-selling and high-pressure sales tactics. Investors who lost money in the collapse are still waiting for details of what compensation they may be entitled to.

WHAT TO DO?

Have you been cold-called by someone offering to buy or sell shares?

Chances are they are operating from an unregulated 'boiler room' outside the UK - even if there appears to be a UK phone number and/or website.

The FSA maintains lists of unauthorised firms and individuals attempting to target UK investors. See the List of unauthorised firms on the FSA Share scams page (opens in new window).

Or you can call the FSA direct on 0845 606 1234.

For more on the dangers of boiler rooms, see Boiler room threat hotting up

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