Wealth Alliance's James Adams Tackling the Fraudsters: New Campaign to Raise Awareness

CENTRAL DISTRICT, Hong Kong - Sept. 25, 2016 - PRLog -- These are increasingly offering investments in gems, land, art and wine that unfortunately on paper have little or no value at all.

"This fire is being fuelled by amendments that have been made globally to retirement provisions. In the United Kingdom, these rules were relaxed last year, In Australia the change in the tax threshold has recently been amended however no matter where you are in the world clients are looking at securing a brighter financial future. I recently attended a meeting at the FCA in London and the figures that were presented were astounding; approximately £1.2 billion is stolen form Briton's life savings through alternative investment scams who sell nothing but dreams, lies and fiction."

"The process start with a contact with absolutely no substance behind how they got the prospects details, almost always on the individuals residential or work landline. This is because only accredited companies can have access to bonded lists that contain personally information such as mobile numbers and accurate residential details which are derived from individuals that have expressed an interest in financial products and/or services in some form or another over the last 12-18 months."

He added, "From both a personal and professional point of view the actions of these individuals makes me sick to the pit of my stomach. Hundreds of thousands of people are affected globally each year by this kind of fraudulent activity although this figure is probably higher because most people do not report the crime because they are too embarrassed. The average loss is in the region of £20,000 or $29,000 although in some case this runs into the millions with many victims left bankrupt facing their golden years with nothing in the bank."

Renewed warnings are being sounded globally by the various regulators such as the City regulator, the Financial Conduct Authority (FCA), Securities and Exchange Commission (SEC) and the Australian Securities & Investments Commission (ASIC) to name but a few through initiatives such as the UK's ScamSmart Campaign.

Underhand Techniques

Prospective victims are not necessarily swindled in one call, they may well speak to numerous people before any money is handed over. Several calls will be made and on some occasion's glossy promotional paperwork, birthday and Christmas cards, chocolates, bottles or wine and flowers are sent to grease the cogs. They generally brush over the risk and least not forget investing through definition always carries risk and they apply pressure by placing a limited time window on said investments and confuse their target with confusing technical jargon. As a rule of thumb if I company cannot prove its company registration details then they should be avoided.

Unregulated Investments

Misunderstanding arises since not all unregulated investments are a scam, although they do tend to have a higher level of risk. However increasing numbers of people are falling victim and in between the cracks due to lack of regulation.

James Lucas, Lead Wealth Advisor for Asia Pacific at Wealth Alliance said, "I have recently been sorting out the mess that was caused by one of my Australian clients Mr. Donovan*, a retired 71-year-old from Sydney who invested in two blue diamonds for $55,000. He was contacted on his residential number out of the blue from a company that was based in the gold souk in Dubai. Fast forward 6 months and after not being able to contact the fraudsters, he then got an email from someone working in the City of London's Jewelry district, Hatton Garden whom asked for another payment of $8000 upfront for the repatriation and storage of the gems with a further $8000 being due at a later stage."

He added, "After an extended period of no contact and in the misguided and vain attempt to get his investment back Mr. Donovan paid the amount and then after no contact for months was inundated with calls from a liquidator to tell him that the company had gone south and that they would do their best to find a buyer for the gems. Thankfully he came clean to me at this point and I got our legal team on it, reported the company and nothing has been heard since. They have simply vanished into thin air."

Staying in Safe Hands

Paul Edwards, U.S Equities Specialist, Wealth Alliance, advises individuals always remain suspicious, skeptical and vigilant; to always ask questions. He said, "Check the relevant jurisdictional warning lists to establish if the company that is asking you to part with your hard earned money have been flagged as fraudulent and are the real deal."

He added, "At the end of the day we apply the old, tried and tested adage of never putting all your eggs in one basket; diversification is key for the long-term success of a meaningful investment portfolio. Cash, property, equities, fixed income, funds and securities offsets the negative impact of the turbulence that any market presents. In my opinion if you do not know about something just ask. If you have a problem with your car, who do you call? Obviously a mechanic. If you have any questions regarding the sobriety of an investment, then sensibility dictates that you call a trusted advisory service such as Wealth Alliance. Something that all our clients can bear testament to since our foundation in 2006."

If you have any further questions regarding this article or would simply like to establish how Wealth Alliance can assist you, your family and/or business in securing your financial future then simply contact us to arrange a convenient time when you can speak to one of our Private Wealth Advisors.

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