Category: Money tips Release Date: 2007-02-12
MLM model use
Friends and relatives who used to sell each other to promote direct sales model, is more easy access to investor confidence, compared to telephone marketing and media promotions, which are more hidden.
Ms. Han had encountered this scam told reporters, has been a very good relationship with her cousin, once a day for several phone calls from her to sell the "initial" and said that he has spent thousands of dollars to buy this stock. In the cousin's repeated persuasion, Ms. Han because of the sensibilities, while his cousin out of the trust, and eventually agreed to buy 10 million of the "initial."
Fun through the fraudster is able to sell "shares of overseas listed companies to be" overnight riches "myth", there is simply good at using the Investors in its own weaknesses, so that investors willing to put "Zhenzhu Shan."
But the hoax after all, it is inevitable that flaws, as long as the more cautious investors in identifying, must be able to find Dan Liuqun exposed outside in the gorgeous tail.
Listed overseas bait
Almost all of the illegal distribution of both travel to the overseas listing as bait, but actually impossible for most of the overseas listing, even if a small number of overseas companies listed on the final, but also mostly in the OTCBB or the "Pink Sheets" and other non-main board market.
In fact in the United States, OTCBB, "Pink Sheets" market and the Nasdaq market, such as the motherboard is completely two concepts. OTCBB, "Pink Sheets" market-level low, usually confined to the individual states, with a very limited release, the price is very low. Many companies listed, almost no trading volume.
The reason why the company's listing fraudster site selection in the OTCBB or the "Pink Sheets", mainly due to market very convenient to operate. Domestic companies only need to contact the specialized agency, you can relatively easily be obtained cheaply in the market shell company into its own assets. If the operation goes well, half a month you can complete the IPO.
Illegal intermediary agencies took advantage of domestic investors in overseas markets limited knowledge to defraud.
Option to prove specious
In order for investors to believe that "to be overseas listed companies," there are established legal status of securities issued, fraudster will usually issued by the local government approval of the relevant stock company set up legal documents, or property rights exchange of the shares managed to prove their .
Experts pointed out that the local government approved the establishment of the company's documents, can only prove the existence of the company. The property rights trading center of the shares issued by the host to prove, but the agreement is carried out based on civil registration, hosting and have no legal effect, the above two are not adequate to identify its establishment, issuance of securities legitimacy.
Shares of the Company to sell off-site
In this type of scam, the fraudster to sell shares in companies and the investors are basically off-site location. Experts to explain the benefits of doing so, because investors and companies the two sub-offices, and far apart, it is difficult to grasp the actual situation of the company, which for the peddlers of hype have been facilitated.
