Demystifying the three tactics of original stock fraud

2021-08-11

Original stocks are highly sought after by investors due to the wealth effect of doubling after listing. However, for most people, the original stock is so hopeless. Under this contradiction, various scams around original stocks frequently appeared. Nowadays, with the acceleration of IPO expansion, especially when new stocks on the ChiNext and small and medium-sized boards are coming in, the original stock fraud has come back with updated methods and various tricks.


Trick one: use currency as the original stock


It is estimated that many investors have seen foreign currencies such as the US dollar, Canadian dollar and Japanese yen, but the Indian rupee, South African currency, Peruvian currency... these rare currencies in circulation are rarely known. Some scammers use this loophole to use rare currencies as overseas original stocks to defraud money.


Recently, a fraud case involving the use of Peruvian currency as the original shares of Hong Kong stocks was solved in Zhejiang. It is reported that the four suspects conspired to defraud more than 500,000 yuan in just one month. The informant, Ms. He, stated in the presentation of the deception that at first, the two criminal suspects invited her to dinner in the name of making friends. During the dinner, one of them said that the other was a Hong Kong boss with original shares in his hand. They met this time for the purpose of trading. Afterwards, the "Hong Kong boss" took out a stack of seemingly regular tickets, and another person immediately picked up his mobile phone and called another suspect who was posing as a major purchaser. After a few words, it seemed that he was relaxed. Earned a price difference of 4000 yuan. Ms. Chen was also excited and bought 20,000 shares for 100,000 yuan. However, when she went to buy a big deal, she found that people went to the building and the contact information was interrupted. It was later verified that these "original shares" were Peruvian coins with a very low exchange value.


Trick 2: Casting the net in the name of private equity


In the past two years, private equity has gradually gained the trust of investors due to its significantly better performance than public equity. More investors believe that private equity has more "wild" paths or insider information, and private equity investment has more "rich ways". Therefore, some scammers simply advance funds to set up a "private placement", and then purchase the contact information of shareholders to spread the sales network.


A few days ago, investor Mr. Yao talked about his experience of being deceived. In May of this year, he received a call from a private equity investment company claiming to be a private equity investment company in Shenzhen, saying that there was a sale of the original shares of a Beijing company that was about to land on the ChiNext, asking him if he was interested, and claiming that the company would be before the end of July. Listed. Originally, he was just chatting casually curiously, but after asking some questions about the source of the original stock, how to buy it, and so on, the answer that sounded like a seamless answer made him a little moved. And when the other party sent him the web pages of his company and the original stock company, especially after he called the company in Beijing according to the above contact information and learned that the listing was underway, he began to believe that it was really a "pie." Fell on his head. Subsequently, Mr. Yao did not hesitate to buy 45,000 original shares at a price of 4.8 yuan and 6.8 yuan respectively, and remitted a total of more than 260,000 yuan.


As the date of the company’s listing approached, Mr. Yao called the company again to find out the progress, only to find that the other party had shut down.


Trick 3: Clearly clarify and secretly seductive


After the "old-fashioned" original stock scam became a rat crossing the street and escaped from the world, the scammers came up with a new method. Simply setting up website marketing can no longer deceive people, but with a clarifying statement that matters, the effect is extraordinary.


In May of this year, Ms. Xiang, an investor, saw a message about the transfer of original shares in a stock forum. She was curious and clicked on the link below. The first thing that caught her eye was the very large "Solemn Statement", saying " The company’s listing work is proceeding in an orderly manner. Recently, it was discovered that an institution fraudulently used the company’s name to transfer shares. At present, the company only transfers the shares of the third largest shareholder, Ms. Jiang, and has not transferred any other shareholders’ shares..." Ms. Xiang learns more about the company's interest. After reading the webpage, she called the company to ask how to buy the original shares. Originally it was just a simple inquiry, but when the company said that Ms. Jiang's shares had been transferred, Ms. Xiang believed that she had missed the opportunity and was disappointed. So, when the company asked her to leave a phone call and told her if there were other shareholders to transfer, she agreed without hesitation. Four days later, the company called and said that a new shareholder had sold the original shares, but the stock price was slightly higher and the number was not large. Ms. Xiang, who was eager to make money, finally bought 20,000 shares for 160,000 yuan.


After a period of time, Ms. Xiang found that the company webpage could not be opened, but the original phone number was not saved; after 3 months, the website has not been opened, and she had to believe that she had been cheated.


Reminder: Nowadays, the booming new stock market and the high returns from original stocks make investors rush, which gives fraudsters an opportunity to take advantage of. Investors must not believe in the so-called richness myth. At the same time, they should also strengthen their study of relevant securities laws and regulations to improve their ability to discriminate. The "Measures for the Banning of Illegal Financial Institutions and Illegal Financial Business Activities" promulgated by the State Council in 1998 stipulated that "the losses incurred by participating in illegal financial business activities shall be borne by the participants." Therefore, investors must not have a fluke mind, buying and selling securities should go to a stock exchange established in accordance with the law.


 Excerpt from "China Securities Journal" August 5, 2010