"Boiler room" victims to receive 1 million pounds

A Kenyan businessman who ran a share-selling scam from offices in London and Barcelona has been forced by a court ruling

obtained by The Financial Services Authority (FSA) to return a quarter of the 4 million pounds that his company managed to scam out of British investors.

The Kenyan businessman – Mr. Manji was the owner of Bayshore Nominees Ltd a company that cold called investors and encouraged them to buy worthless shares.

Similar “boiler room” scams have been operating in Spain for years. Analysts estimate hundreds of them to be in operation in Spain. In most cases “boiler room” scam victims are unable to recover any money lost given that most of these companies are not registered, so victims cannot claim compensation from the Financial Compensation Scheme or complain to the Financial Ombudsman Service.

Investors who have dealt with Bayshore should contact the FSA consumer contact centre on 0845 606 1234 (referring to “Bayshore”) with their details so they can be contacted in connection with any possible compensation.

Image by zerospin under Creative Commons.