Anti-money laundering news 17 October 2008 Money laundering arrests for boiler room suspects

Police in Birmingham arrested a man and woman last week on suspicion of money laundering, related to an alleged share-dealing boiler room fraud.

Boiler room schemes involve high-pressure telephone sales of overpriced or invented shares. In this case, the fraud is believed to have resulted in proceeds of crime worth more than £3million. More than £700,000 of this has been traced, but the force is keen to trace anyone who may have bought worthless shares in fictitious companies through H&S Consulting, Crystalix Consulting, Anderson Consulting or TDR Consulting. All of these firms operated through Birmingham post office boxes, and did so without registered offices or company numbers.

Detective Inspector Mark Salt, from the Economic Crime Team, warned that We believe that this fraud could have affected people across the country, and maybe even people abroad. It is important that we find out who has been affected by this crime so that we can bring the offenders to justice.

Both of the suspects arrested under money laundering law have been released on bail while police make further enquiries into the suspected fraud. Anyone who may be a victim of the boiler room scheme is invited to telephone Birmingham police on 0845 113 5000.

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