The background is that Financial Plus contacts members of the public with an offer that they can buy shares in blue-chip companies at a bargain price. They proceed to issue an invoice for the purchase. It looks and feels genuine.
The money for the shares is to be paid to a Hong Kong company the investor has never heard of e.g Hongkong Vast Dream Ltd. This should be an instant red flag for investors. NEVER pay money to a company you have never heard of, especially one in Hong Kong or Dubai or another non-mainstream country. NEVER believe a company when it says the money will be held in escrow.
Quite often the investor is enticed by news that the company is about to float and the share price will then rocket. The promise of a quick profit proves too much for some people and they don’t stop and think about what they are doing.
The investor is continually approached to buy more and more shares. Eventually a new company e.g Everett Capital Partners or another professional sounding name approaches the investor to say that they are holding the shares for them and will sell them at a profit if the investor pays a fee. This is the second part of the scam. This is a fake company which does not exist. The investor is still dealing with the original scammers but does not realise it.
The investor pays the fee and is then told that the shares have been sold and have made a huge profit. They are being held until the investor pays the tax which is normally around 10%. This is the third part of the scam. If the investor queries things they bring in a third “official sounding” organisation called something like “The Department of Financial Regulators” to explain to the investor that everything is above board and they should pay the tax. This is another fake organisation which does not exist. The investor is once more still dealing with the original scammers but does not realise it.
If you have made an investment with Financial Plus or Martel Bronfman or any other questionable organisation, or you have made any other investment which you are concerned about, or you are interested in working with Safe Or Scam, please contact us through our website here