Sharechat Logo

Investors warned against over-the-phone schemes

Friday 4th August 2000

Text too small?

About 35 New Zealand investors have been stung by a phone fraud futures contract scheme run from the US.

The US Commodity Futures Trading Commission has taken court action against the scheme which involved illegal futures contracts for precious metals and other commodities.

Investors were signed up by phone.

The New Zealand Securities Commission said virtually all customers had lost most of the money they invested. Most of the money had gone on commissions and fees.

The principals of the scheme, which purported to operate from the Bahamas but was actually based in North Carolina, were Alan Stein, Joseph Finateri and Michael Temple.

The contracts were illegal under US law.

"The case shows how important it is for people to be very cautious when approached with overseas investment propositions over the phone," Securities Commission senior executive of operations Norman Miller said.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

US earnings season starts amid glimmers of hope on trade, Brexit
Class action suit against CBL Corp about to launch
NZ dollar benefits from possible US-China trade deal
MARKET CLOSE: NZ shares rise; Sky TV recovers on rugby rights rumour
NZ dollar firms: Trump says China trade talks are
Kiwis spend more than expected in September
Red tape and levies cut in first phase of major Building Act overhaul
More dairy needed to achieve sustainable global diet - Fonterra
New Zealand manufacturers still struggling
Walmart US boss flies home as incoming Air NZ CEO

IRG See IRG research reports