Boiler Rooms & Cold Calling
Often, an unsophisticated person or senior citizen with limited savings will receive a telephone call from a high pressure salesman working for a small brokerage firm in New York or Florida. Misrepresentations will be made that the person calling is a very experienced stock broker who will give quality personal service to the customer. Misrepresentations are also often made that the broker has information on relatively unknown stocks, telling the customer that if they invest in the stocks, they will make a lot of money in a short period of time. Sometimes, “bait and switch” is used, which is when the investment increases in value a small amount at the beginning, which results in the customer being encouraged to invest their entire savings with the broker. What usually follows is a long spiral of losses in the investments that were solicited by the broker.
If you have lost money from a “boiler room” scam or in connection with “cold calls” from an investment advisor, contact the securities fraud attorneys at Rosenberger + Kawabata.
