Share Scams and Fraud
Boiler Room Scam
We have recently been made aware of a boiler room scam, this means that an organisation is making unsolicited phone calls and sending out unsolicited correspondence to shareholders. As a result of this scam some of our shareholders have been approached by an organisation to sell their shares in Premier Foods at inflated share prices upon the payment of an “indemnity bond” or similar. This organisation justifies their increased share price by confirming that they are in possession of inside information on Premier Foods. There is no truth in their claims and as you will be aware as a London Stock Exchange regulated company Premier are legally obligation to disclose information to the market as soon as practicable.
What is being done to stop boiler room scams?
The current organisation in question is known to the Financial Services Authority (FSA) and is on their watch list. Unsolicited phone calls or correspondence concerning investment matters with shareholders are a growing issue and everyone must remain vigilant to prevent possible financial loss. To check whether an organisation is properly authorised by the FSA please visit www.fsa.gov.uk/register/.
How would they get my Premier Foods share details?
Details of a company’s shareholders and their addresses were required to be disclosed on a company’s annual filing to the Registrar of Companies up until October 2011. Changes in legislation brought in on 1 October 2011 no longer require companies to provide this information and therefore the last disclosed information Premier provided to the Registrar was that correct as at 15 October 2010.
What should I do if I receive a call from an organisation wishing to purchase my shares?
In the event that you are contacted by an organisation or individual wishing to purchase your Premier Foods shares you are strongly advised to follow the FSA’s guidelines;
• Make sure you get the correct name of the person and organisation;
• Check that they are properly authorised by the FSA before getting involved by visiting www.fsa.gov.uk/register/ and contacting the organisation using the details on the register;
• Report the matter to the FSA either by calling 0845 606 1234 or visiting www.fsa.gov.uk/pages/consumerinformation; and
• If the calls persist, hang up.
It is important to note that if you deal with an unauthorised organisation, you will not be eligible to receive payment under the Financial Services Compensation Scheme.
You can report any suspicions directly to the FSA through their Consumer Helpline +44 (0)845 606 1234 (typetalk 18001 0845 606 1234) or by completing their online form at http://www.fsa.gov.uk/pages/doing/Regulated/Law/Alerts/form.shtml.