boiler room

(redirected from Boiler rooms)
Also found in: Dictionary, Financial, Encyclopedia.

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 ?
A few years ago no one had heard of carbon credits, but they've become a favourite vehicle of boiler room scammers.
Boiler room scams involve fraudsters using high pressure sales tactics to con investors into buying non-tradable, overpriced or even non-existent shares.
"My advice is don't take any cold calls, and if it looks too good to be true, it is." Speaking after the hearing, DC Rob Inkster of Dyfed-Powys Police said: "We did some intelligent checks which lead us to the City of London Police who were also looking at the same boiler room. "We just followed the money trail - where the money had gone to different parts of the world, to different bank accounts, which eventually led us to this guy, Mr Knudsen.
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.
The boiler rooms then often vanish, leaving the investor out of pocket.
Boiler rooms utilise publicly available data from company share registers to establish lists of potential targets.
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.
There even have been cases in which boiler rooms awarded victims vacation packages that consisted of nothing more than travel certificates the boiler room bought in bulk for pennies apiece.(1)
Boiler rooms date back to the 1920s, when the purveyors of worthless penny stocks first discovered that a few dozen phones set up in a basement gave them the power to cheat and deceive on a national scale.
"Intelligence suggests that this list of people from across the UK is currently being shared among boiler rooms."