FSA warns of fresh 'boiler room' scam

The regulator defines boiler rooms as using high pressure sales techniques to persuade UK investors to purchase shares in companies that are usually based overseas. It says such firms are acting illegally as they are not regulated and are selling and promoting the sale of shares in the UK. In the majority of cases the shares being sold are worthless and the boiler room vanishes leaving the investor out of pocket The FSA says it has become aware of a new trend in which a boiler room would approach a small UK company and propose to raise capital by selling £100,000 worth of shares in tha...