Stock scam lures investors with unsolicited phone call - WMC Action News 5 - Memphis, Tennessee

Stock scam lures investors with unsolicited phone call

(WMC-TV) - It's a stock scam that starts just like a lots of scams do, with an unsolicited phone call.

"This company told victims that one day it would be larger than Home Depot," said  U.S. Postal Inspector Al Herzog.

That was the hook that lured investigators to give more than half a million dollars to a home maintenance business.

"They would sign a contract with you and promise to do all of your home maintenance throughout the year," said Herzog.

The company lured investors in with lies and half-truths.

"In fact, the company was losing money on a daily basis," said Herzog.

The company kept stringing investors along.
 
It sent its victims stock certificates that were all fake. They never registered with the Securities Exchange Commission.

Postal inspectors say none of the victims would have been suckered if they had just spent three minutes on the Internet.

"If they would have done an internet research on one of the defendants they would have learned that he served a prison sentence in the 1990's for doing the exact same thing," said Herzog.

Don't accept an unsolicited stock tip over the phone at its word.  

Make sure to get a company name, get a physical address and check its credentials with state regulators.

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