Bought shares through a Swiss company - Mistake??
Discussion
Hi, I am after a bit of advice. I was approached over the phone by a copmpany apparently based in Switzerland called Swiss Management Consulting. I have bought shares on their recommendation through an agent in the US into a company on the US stockmarket. I have received a share certificate but it is stamped with a Regulation S legend, meaninng they can't be sold to anyone in the US. I was informed that there was a restriction on the shares and that they would assist me selling them on as you had to hang on to them for 12 months. However There is nothing on this certificate that indicates this restriction is removed after 12 months. I have been told I have been scammed and that it will be very difficult to shift these shares and not to go back to this company. I am going to go to the company direct who the shares are with but I am unsure of the best route to go down here?
Anybody else had any similar dealings or stories? Thanks!
Anybody else had any similar dealings or stories? Thanks!
Retard said:
Sounds like a boiler room scam to me, long and short of it is that you're 
ed, although it may be worth reporting it to the FSA who will be able to give advice if nothing else. I suppose Gary can always do this if he can't find another trading job...
Who's Gary? And is there no way of dealing with this through the actual company who have the shares?ed, although it may be worth reporting it to the FSA who will be able to give advice if nothing else. I suppose Gary can always do this if he can't find another trading job...I am not familiar with regulation S restrictions but I have a little experience of US restricted stock.
A one year restriction after which shares can be 'cleaned' of their restrictive legend sounds plausable. I would ask the US broker who bought the shares for you to explain the nature of the restriction. If this is fruitless call the underlying company that you have invested in, it may be worth asking them for the name of their legal counsel.
Also note that it is not uncommon for legal counsels to charge opinion fees to consider applications to clean stock. In my experience there is generally no charge, but where there is a fee it is $1000 !!!
Good luck.
Stu
A one year restriction after which shares can be 'cleaned' of their restrictive legend sounds plausable. I would ask the US broker who bought the shares for you to explain the nature of the restriction. If this is fruitless call the underlying company that you have invested in, it may be worth asking them for the name of their legal counsel.
Also note that it is not uncommon for legal counsels to charge opinion fees to consider applications to clean stock. In my experience there is generally no charge, but where there is a fee it is $1000 !!!
Good luck.
Stu
Retard said:
Sounds like a boiler room scam to me, long and short of it is that you're ed,
That immediately sprang to mind. ed, 
They will probably call you in a year to buy it off you at a silly price, and you'll think they are being really customer-focused by buying a stock off you that you can't sell. (I think this is how they operate.)You may find this helpful: http://www.moneymadeclear.fsa.gov.uk/news/share_Sc...
Gary is someone who is going to be a salesmen in a boiler room next year.
Gary is someone who is going to be a salesmen in a boiler room next year.
Hmmm. Would boiler rooms have a registration on the swiss chamber of commerce (registered in 1989 according to this - thats if the web address of the one they gave me is the right one) and would they use Escrow agents to solicit the transfer? Also would they use a large well known bank and telegraphic transfer to this bank as this is all tracable (I have spoken to the bank and they know the agent personally - whether this is good or bad!!)? There have been alarm bells ringing with me, but they don't seem to the small time scammer and the company I have bought with is on bloomberg etc, not just the otccb bulletin board for small companies in trouble.
Suppose I'll will have to wait and see
Suppose I'll will have to wait and see
Retard said:
You may find this helpful: http://www.moneymadeclear.fsa.gov.uk/news/share_Sc...
Gary is someone who is going to be a salesmen in a boiler room next year.
Gary is someone who is going to be a salesmen in a boiler room next year.
nice, where do I turn up?I wouldn't sink that low, there's more than one way to skin a cat.
davy9449 said:
Hmmm. Would boiler rooms have a registration on the swiss chamber of commerce (registered in 1989 according to this - thats if the web address of the one they gave me is the right one)
Possiblydavy9449 said:
and would they use Escrow agents to solicit the transfer?
Probablydavy9449 said:
Also would they use a large well known bank and telegraphic transfer to this bank as this is all tracable (I have spoken to the bank and they know the agent personally - whether this is good or bad!!)?
I'd look into this more carefully... If nothing else if this bank is "well known" you might be able to get some hush money. Then again, UBS is well known for dealing with Nazis...davy9449 said:
There have been alarm bells ringing with me, but they don't seem to the small time scammer and the company I have bought with is on bloomberg etc, not just the otccb bulletin board for small companies in trouble.
Bloomberg has all sorts of crapdavy9449 said:
Suppose I'll will have to wait and see
The more information you post here, the more others can help you...Well these guys seem a bit more legit than that one - maybe they got smarter! The company in question is a growing company with a half decent website and is a developer and producer of IPTV. They have broken into the Chinese market and have some big contracts that have just happened, or are just happening. I have no real quarms with the company, and I have only invested £1500 although the 'background noise activity' from a possible tape sounds familiar!!
I appreciate the help. I am waiting for a call back, where I will be politely declining his offer for more shares. I will be getting in touch with the actual company I bought the shares with tomorrow. Wish me luck!!
I appreciate the help. I am waiting for a call back, where I will be politely declining his offer for more shares. I will be getting in touch with the actual company I bought the shares with tomorrow. Wish me luck!!
Retard said:
I definitely wish you good luck and that you've been dealing with decent people, but as you probably haven't, what company have you invested in?
Itonis Inc! Share price has come down a bit apparently due to them buying half the shares available and somebody else (forget who) buying the rest then they will be sold back on the market within the next few weeks or so!He called me again about 20 mins ago. Said he was going to give me a phone number to call to verify my shares are on the share register! How do I know if it's a legitimate one!
Oh, and he is pushing me to buy some more!
HI mate, I don't intend to don't worry. I have contacted the FSA to see if they can suggest anything, but probably fruitless. I will try and string them on a bit in case I need them to get rid of the shares (in vain hope).
Have contacted the transfer agent - I await their verdict. But apparently there is a 2 YEAR restriction! I hope the company takes off and doesn't go bust!
Have contacted the transfer agent - I await their verdict. But apparently there is a 2 YEAR restriction! I hope the company takes off and doesn't go bust!
Edited by davy9449 on Tuesday 13th November 16:36
Hi there i am at the beginning of a similar experience and have been very cautious thus far I am almost at the point of buying but havnt done so yet. Itonis do seem a fair gamble and as with all share dealing it is exactly that. the company profile looks to be in order. The company I'm dealing with again in Switzerland is called Von Bismark, they have a professional looking website but that dosnt mean they are a professional concern. Has anybody heard of Von Bismark, any advice would be appreciated. I assume If i reallly wanted to take a risk with Itonis I should/could purchase shares over here through a bank or dealer?
Edited by johnny1760 on Wednesday 28th November 11:56
johnny1760 said:
Hi there i am at the beginning of a similar experience and have been very causious thus far I am almost at the point of buying but havnt done so yet. Itonis do seem a fair gamble and as with all share dealing it is exactly that. the company profile seems to be in order. the company im dealing with again in swuitzerland is call Von Bismark, they have a professional looking website but thats dosnt mean they are a professional concern has anybody heard of von bismark, any advice would be appreciated. I assume If i reallly eanted to take a risk with Itonis I could purchase shares over here through a bank or dealer?
Give me half of what you are going to invest.Keep the rest.
You still be better off.
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