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Boiler Room Fraud Solicitors




Boiler Room Fraud essentially are were non-existent or worthless shares are sold using high pressure sales techniques.


There are 2 types of charges that you could face in relation to this.


For the most serious charges you could be charged with conspiracy to defraud or fraud by misrepresentation. The misrepresentation would relate to the likely value of the shares, or an anticipated activity, such as the shares were about to be listed on a stock exchange. If the shares did not exist then the misrepresentation would be that they existed.


The second type of charge you could face is a breach of a regulation. Share dealing is regulated under the Financial Services and Markets Act 2000.

Section 19 –

The general prohibition.

(1) No person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is—

(a) An authorised person; or

(b) An exempt person.

(2) The prohibition is referred to in this Act as the general prohibition.


Dealing with investments is defined as a regulated activity under s22 –


The classes of activity and categories of investment.

(1) An activity is a regulated activity for the purposes of this Act if it is an activity of a specified kind which is carried on by way of business and—(a) relates to an investment of a specified kind; or(b) in the case of an activity of a kind which is also specified for the purposes of this paragraph, is carried on in relation to property of any kind.

(2) Schedule 2 makes provision supplementing this section.(3) Nothing in Schedule 2 limits the powers conferred by subsection (1).(4) “Investment” includes any asset, right or interest.(5) “Specified” means specified in an order made by the Treasury.





It is further defined under The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.


Article 14 –


Dealing in investments as principal


  1. Buying, selling, subscribing for or underwriting securities or contractually based investments (other than investments of the kind specified by article 87, or article 89 so far as relevant to that article) as principal is a specified kind of activity.


Article 21


Dealing in investments as agent


  1. Buying, selling, subscribing for or underwriting securities or contractually based investments (other than investments of the kind specified by article 87, or article 89 so far as relevant to that article) as agent is a specified kind of activity.


There are however a number of exclusions. It is important to check that the activity is covered under this order. The common exclusions are Funeral plans, Pensions and the issuing by a company of its own shares.


A further regulation that is used to charge in these type of situations is the restriction on financial promotion. This is covered in section 21 of the Financial Services and Markets Act 2000.


Restrictions on financial promotion.


(1) A person (“A”) must not, in the course of business, communicate an invitation or inducement to engage in investment activity.

(2) But subsection (1) does not apply if—

(a) A is an authorised person; or

(b) the content of the communication is approved for the purposes of this section by an authorised person.

(3) In the case of a communication originating outside the United Kingdom, subsection (1) applies only if the communication is capable of having an effect in the United Kingdom.


In short you cannot promote investment activities unless you are authorised or it has been approved by someone who is authorised.




In any allegation of Conspiracy to defraud it is a defence to show that you were not dishonest.

In relation to any regulatory offences it is important to make sure that the activity complained of is a regulated activity.




These types of matters will almost inevitably result in a prison sentence unless you can show a very small amount was involved and that you had a minor role in the offence.




We understand that people facing these charges are under a considerable amount of stress. We will review your file thoroughly to see whether there are any defences and if not we will prepare a full and comprehensive mitigation statement. If you are pleading guilty we will ensure that the court sees you as an individual rather than simply concentrating on the numbers. We will ensure that all of your valid mitigation is put forward and obtain the best outcome for you.


We will guide and support you and your family through every stage of the proceedings. We are proud of our award winning customer service and we aim to ensure that this is as stress free as possible.


For Free Initial Advice call us on 01623 397200