FSA warns investors off 'recovery firms'

Philip Scott, This is Money Many investors who originally bought shares through Pacific Continental have already complained to the FSA that they are being 'cold-called' by firms offering to buy the shares, or to put them in touch with a buyer – for a fee. These so called 'recovery firms', which typically call from outside the UK, are not authorised by the FSA and are not permitted to approach UK consumers to promote financial services. Commonly known as 'recovery rooms', the tactics of such firms is to offer to buy shares at an attractive price but demand an advance fee. This, like boiler rooms, is a scam - as soon as the fee is paid, the firm disappears with the money and without purchasing the shares. The FSA is presently looking into the complaints. Pacific Continental went into administration on June 20 2007 and is now in... [read full story]