Five men were arrested and held last week after an investigation was launched into a suspected boiler room racket which reportedly sold overpriced commodity investments.
The men, according to City of London police, are believed to have been cold-calling people across the UK, and in particular targeting the vulnerable as victims.
Operated by a group of men calling themselves the ‘Wolfs of Liverpool Street’, a reference to the film ‘The Wolf of Wall Street’, and set up around offices in the Square Mile, the boiler room tactic was used to sell overvalued commodity investments and was raking in the money.
They were arrested “on suspicion of conspiracy to commit fraud by false representation and money laundering”. All five were held and interviewed at a City of London police station while the investigation into the scam continues.
However, it may be too late for some, as Action Fraud has reported that a number of investors have potentially lost five digit sums of money through the nefarious scam.
Boiler rooms are named as such because they use high-pressure tricks and tactics in order to make sales, including repeat calls with the overall aim to persuade people to put their money and confidence in overpriced or completely worthless investments, where they will never see a return on their money.
Leading the investigation was Detective Inspector Dave Manley, who warned that this type of scam is on the rise. He said: “In recent months we are finding evidence of boiler rooms creeping back into the City.
“This could be partly a result of the success we’ve had in shutting down these types of operations overseas and partly down to the fact that having a fancy office in the Square Mile makes it easier for the gangs to recruit.
The detective went on to say that regardless of the reason, local London police will not tolerate these crimes and are dedicated to eliminating them and limiting any harm they can cause to UK elderly and vulnerable investors, who are often the targets.
The arrests came as part of the City of London Police’s crackdown, ‘Operation Broadway’, which is targeting boiler room fraud.