IAG share-buying scam
13-Dec-2007I just got a letter offering to buy all of my IAG shares, currently trading at $4.39, for $2.11 each.
I’m not sure it fits the dictionary definition of scam. It’s not criminal, just evil.
The information that they’re looking to buy to buy your shares at less than 50% of their value is hidden in plain view. The buyer, Shareholder Sales Group Pty Ltd (ACN 128638308), clearly states in the first paragraph that they’re offering $2.11 and that the market value of IAG shares on December 11th was $4.61.
Included is a form to sign giving them power of attorney to transfer ownership of all of your shares to them.
They recommend getting independent financial advice. They also have a FAQ explaining that there won’t be brokerage fees and when the offer closes. They’re making it plain what they intend to do, they’re relying on people signing the document and sending it back without understanding what its all about.
It’s very similar to the ploy in this recent news story.
I wonder if I should mail them a similar-looking form to sign with wording that gives me the authority to return any shares they buy to their previous owners.
RE evil way of buying shares at half price -
chris | 14-Dec-2007RE evil way of buying shares at half price - I’m with you -its disgusting - I’m trying to find their phone number to ring them and tell them so
We got one too. As the Age article you linked
Alan Green | 15-Dec-2007We got one too. As the Age article you linked points out, it’s the work of David Tweed - a man famous enough to have his exploits detailed on a Wikipedia page - http://en.wikipedia.org/wiki/David_Tweed.
That's quite a Wikipedia page! I would have thought
Chris | 16-Dec-2007That’s quite a Wikipedia page! I would have thought these were hit and run scams, but he has quite a bit of form.