Don't get roped in by the offshore cowboys


The Financial Services Authority this week issued its biggest blacklist yet of firms that investors need to be extremely cautious of before handing over any cash.
The list - which has tripled in size in a year - is an attempt by the watchdog to alert investors to potential cowboy firms that operate scams using heavy handed sales ploys to convince them to buy worthless shares. The watchdog has also warned of a new scam that means some people are being stung twice.

Commonly known as "boiler rooms", these unregulated firms often exist only on paper as a front for flogging shares with the promise of extraordinarily high returns when in reality they may be nearly worthless.

The reps will often tell investors they stand to make as much as 100% return on their investment. Sometimes they rely on jargon to pull the wool over people's eyes and the shares being sold often sound obscure and hi-tech or are quoted on little-known markets.
The FSA hit list

Below is a list of unauthorised investment firms that the Financial Services Authority believes are targeting UK investors. The FSA regularly adds names to the list and warns that there are many other illegal firms operating without authorisation and usually from outside Britain which are not yet on its list.
K P Allen

Berkshire Tax Consultants

Cambridge Global Inc

Carter James SL

Chamberlin Management Inc

Chapman Foster Group SL

Condor Research

Fielding Clifford

First Chartered Capital Corp/First Colonial Trust

Globeshare

Hamilton Asset Management

Hoffman Philips SL

Hopkins, Pierce & Co Limited

Hyda Florsbanc

Jefferson Management

Kline Management Group

Livingstone Asset Management

Mercantilbanc Securities Inc

Millennium Financial Ltd

Morgan Young Financial Consultants

Morrison Cross Financial Investments

Norwich Capital Mutual Funds Limited

Pacific Federal SA

Phoenix Asset Management SA

Phoenix Partners SL

Premier Equities Limited

Reichman Advisory SL

Smith Fairchild

Stanley Riebeck Corporation

Stein Banc Commerce

Sukomo Group

Thibault Capital Markets

Trident Market Advisors

Union Partners SL (formerly Goldberg Kravitz SL)

Walker Stone

Waterhouse Scott Ltd

Webster, Cohen & Galombik Inc

West Shore Ventures Limited

Willmont Financial SL

Windsor Asset Management

World Trade Financial Corporation