From The Drinks Business, “City of London police officers arrested the men on 3 August at a business address in Fleet Street after uncovering the scam, which is estimated to have conned victims out of more than £1 million.
The term “boiler room” refers to an outbound call centre selling investments by telephone, typically using dishonest tactics to ensnare their victims.
In this case, victims were cold called by salespeople claiming that they would be able to get between eight and 40% profit by investing in bogus cases of fine wine.
In order to get more money, victims were told that investors were ready to buy their wine but that to make it more attractive they would need to purchase more wine first.
“Fraudsters will do everything they can to manipulate potential victims and convince them that they are making genuine investments. “I would urge anyone who is cold called and offered investment opportunities to put the phone down and always do your research before making financial decisions.”