Just like the film Boiler Room, a British brokerage was recently shut down for making high-pressure sales of risky stocks to unknowing buyers.
Pacific Continental Securities employed dozens of young salesmen with no investing experience to spend all day on the phone fishing for suckers who would buy their scam stocks. Essentially, a boiler room operation. The scary part is that one former broker came forward revealing all their duplicitous tactics. He's heard some of his former co-workers might be at it again with new firms. Maybe he's just pissed he isn't a part of the new scam?
Tony Levene, a financial writer for The Guardian Newspaper, wrote about some of the details the now-anonymous former broker gave. STORY