ing on Wall Street and elsewhere are injured from the existence of these fraudulent brokerages because it reduces the overall credibility of the investment industries. Further, boiler rooms have a direct impact on commodities, securities, futures and other investment markets because they cost consumers their investment monies that would have been directed to the legitimate market “Each year, thousands of consumers put money into investments. Of these investments, the North American Securities Administrators Association estimates that over $40 billion is lost to fraud in the U.S. Investment swindles include land sales, time-shares, securities (stocks and bonds), commodities, futures, gems, precious and strategic metals, franchises and distributorships, oil and gas leases, art, rare coins, and financial planning services” (PSVF 1).
The typical boiler room operation involves phone banks and scores of telephone solicitors who call potential investors from purchased lists of phone numbers. The typical sales pitch consists of gu
...