boiler room

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boiler room

n. a telephone bank operation in which fast-talking telemarketers or campaigners attempt to sell stock, services, goods, or candidates and act as if they are calling from an established company or brokerage. Often they are totally fraudulent and in violation of security laws.

boiler room

a type of fraud on investors by dishonest brokers who fill a room with high pressure telephone salespeople to push dubious stocks and shares. It is governed by FINANCIAL SERVICES LAW in the UK.
References in periodicals archive ?
The SEC also details the level of deceit and harassment from these boiler room salesmen.
A few years ago no one had heard of carbon credits, but they've become a favourite vehicle of boiler room scammers.
The regulator is writing to everyone whose details appear on the list, explaining the steps they can take to protect themselves from boiler room fraud, and telling them what they should do if they think they may already be a victim.
One such name change was needed after an article ran in the British media about Blossom Hill Investments, a fake firm the boiler room sold shares in.
Tomorrow DI Geoff Smith will take a behind-the-scenes look at how a boiler room fraud works at an event hosted by the North East Fraud Forum.
To help protect investors, the Financial Services Authority (FSA) and the Institute of Chartered Secretaries and Administrators (ICSA) have produced an updated version of a free leaflet with warnings about boiler rooms for listed companies to send to their shareholders.
Jonathan Phelan, head of the FSA's enforcement division, said: "This is a rare bit of good news for investors who have been persuaded to hand over money to boiler rooms as usually the money disappears without a trace.
Gary Lacey, who will run the Boiler Room with his wife, fellow SA officer Dawn, said: "The final decision has not been made.
Visits to boiler rooms only need to happen once a month.
Now their battle against illegal boiler rooms is gaining steam.
Most boiler rooms operate in six stages - solicitation, sales, verification, collection, shipping, and customer service.
Though Washington has helped some states in their efforts to put boiler rooms out of business, few investigators think they have made more than a dent in the problem.