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Stock scammers rampant in Sweden as more are scammed in ghost stock investments

Wednesday, 30 November 2011
The Swedish financial services authority, Finansinspektionens (FI) warning list of fake shares and stock brokerage firms are growing at record speed. But the reduction of share scams is not responsive.

More and more people are loosing money to fake stock brokers who promise them lucrative returns to ghost investments. But the question is how do they do it?

Sweden is a place where people are thought to be bright and tend to trust a lot but how do they turn to allow  themselves to be easily beaten by scammers this way remain a puzzle to us.

One man who lost Skr1million is very upset. He says that it would be nice if politicians could wake up to this situation as it is a serious crime that destroys lives.

According to the Swedish daily, Dagens Nyheter, Small business owner, Lennart (a fictitious name) was duped by Morgan Investment Management Group, who’s earnest and trustworthy advisors attracted him to invest in foreign companies in the energy industry. Once he was about to pick up his gains, the stock brokerage firm had gone up in smoke.

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Police report led nowhere. So Lennart notified the Parliamentary Ombudsman (JO), who left the case without action. And when he tried to deduct the loss in his tax declaration, that was turned down by the hawkish Swedish Tax authority.

“It's really tough. One million, one can do more fun things, but it is tragic.”
Morgan Investment Management Group is one of many companies named on the warning list that Finansinspektionen (FI) compiles. It includes companies that provide financial services without a license, and is believed to engage in that type of investment fraud suffered by Lennart.

The number of new companies on the warning list has this year hit all previous records, almost 800 companies have come so far in 2011, and it now includes a total of almost 3400 alerts. At least 1000 of the companies on the list are or have been active in Sweden, according to police identification.

But the scam companies may be much more than that, according to Jan Green who is FI's expert in the area.
“We do not know all. All victims have not reported the matter to us and some do not even know if they've been duped,” he says.

This issue has been reported over on this network earlier this year - Swedish officials likely don’t read English but other Swedish groups have earlier complained about this issue. There has also been increased criticism of how authorities are combating such share scams.

This is why according to some sources, people have stopped reporting. But one other pain is if the companies are coming from abroad, out of the EU, it is almost impossible to be traced.
By Scancomark.se Team




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