Boiler room fraud
Boiler room fraud

The following Corporate Crime practice note provides comprehensive and up to date legal information covering:

  • Boiler room fraud
  • What is a boiler room fraud?
  • How does a boiler room operate?
  • What types of investment are being sold?
  • What do investigators look for?
  • How is a boiler room prosecuted?
  • Sentencing boiler room frauds
  • Cases considering sentences for boiler room fraud
  • Confiscation

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for corporate crime?

What is a boiler room fraud?

Boiler rooms are the names ascribed to high pressure sales environments. The idea is that the sales environment creates the pressure of a boiler room, with sales people deploying high pressure sales tactics to incite, cajole and pressurise investors into parting with their money in exchange for investments.

The terms 'boiler room fraud' or 'boiler room scam' are used to describe a particular type of fraud perpetrated using boiler rooms. In other words, a fraud carried on by means of distance selling, telemarketing and telesales, by which, victims are pressurised into buying products or investments on a false premise. The goods or investments purchased are usually worthless or worth substantially less than the consideration given. The sales people operating within the boiler room often use dishonesty and/or deception to make the sales and the victims are

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