The ‘boiler room’ refers to a room within a company where high-pressure sales calls are made. Sometimes these call centres are declared by a company and sometimes they are not. It is called a ‘boiler room’ because the intense sales tactics make the environment feel hot but also because a boiler room is a part of a building usually hidden from view.
Typically, boiler room frauds are prosecuted under the Fraud Act 2006, where the individual is alleged to have dishonestly misrepresented a sales opportunity.
The individual is alleged to:
The offence is triggered as soon as the false representation is made. It does not matter whether the rest of any potential fraud is carried out.
High-pressure sales tactics are not by themselves criminal. There must be a false representation within these tactics for fraud under this heading.
‘Boiler room’ frauds involve telesales operators misrepresenting stock value to encourage new investors to buy in. As the investors join, the value of the stock appears to rise, allowing original investors to sell at a profit. If the boiler room workers get a commission from each sale, this can raise the incentive to sell.
The more complicated boiler room operation will run through multiple countries. For example, a company in Asia might route through a call centre in Africa before calling those in the UK. The differing levels of financial regulation in each country can offer opportunities for a defence.
This is not to suggest that boiler room frauds happen in one continuous phone call. Boiler room operators can have separate roles to encourage the potential investor. The ‘opener’, ‘loader’ and ‘closer’ within a team repeatedly call the investor, each playing a different part in the scheme.
The closer, for example, may produce documents to calm any investor anxieties. If these are artificial, the prosecution may try to charge the creator for the production of false documentation.
Fraud proceedings can be brought by many authorities including:
Sales of stocks on a professional basis is regulated by the Financial Conduct Authority, making them a key prosecutor.
If you are arrested for this offence, you will be taken to a police station for the purpose of being interviewed under caution. Among other rights you have the right to be represented at this interview by a solicitor free of charge. This is usually a duty solicitor nominated by the police. You also have however the right to nominate a solicitor of your choice. The solicitor will be able to obtain some information from the investigators about why you have been arrested and will be able to discuss this with you and provide you with advice prior to the interview.
ABV Solicitors have expert boiler room fraud solicitors able to attend the police station on short notice nationwide.
Upon receipt of such a letter it is critical that you seek the assistance of a solicitor immediately. ABV Solicitors will allocate a specialist boiler room fraud solicitor for you and make arrangements on your behalf to liaise with the investigators and facilitate an interview at your convenience.
This will allow sufficient time for you to arrange a face-to-face meeting with a specialist solicitor in advance of any interview so you can be advised, and fully prepared on what to expect.
We are here to fully support you and those concerned during this difficult time. Obtaining immediate legal advice can make all the difference to the outcome of the investigation.
This can be an extremely stressful time for you, your family and your business.
You may have already been interviewed and released on bail or released under investigation. You may have not used a solicitor at all during your interview or are not confident with the solicitor who represented you and require a specialist solicitor with experience in this area.
Whatever the situation, ABV Solicitors have a dedicated team of experts who are experienced in this field and who are able to provide you with sound advice and assistance.
If you have been charged with boiler room fraud you must seek the assistance of a defence specialist immediately. ABV Solicitors have a dedicated Fraud and Financial Crime department consisting of experienced solicitors who are specialist in this field.
ABV Solicitors can provide immediate advice and assistance and assist you and your business during this stressful time.
Law enforcement agencies such as the police, HMRC, FCA or SFO often use ancillary powers in addition to making arrests and search warrants. These include applying for Restraint Orders or Account Freezing Orders under the Proceeds of Crime Act 2002.
The purpose of this is to prevent those under suspicion to dissipate assets which may have been acquired through the commission of committing offences.
These Orders are draconian and can cause severe disruption to the lives of individuals and those connected to them including their businesses.
ABV Solicitors have a dedicated team of experts within their Fraud and Financial Crime Department who specialise in tackling these Orders.
If any of the above circumstances apply to you or someone you know contact ABV Solicitors Fraud and Financial Crime Department immediately on 0344 587 9996 or visit our website at www.abvsolicitors.co.uk
ABV Solicitors are available 24/7 and offer their professional expertise and assistance nationwide.
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