0:00:02 > 0:00:06Each year, almost half the population of Britain is targeted by some kind of scam
0:00:06 > 0:00:09and the brains behind these scams are quick-thinking con men
0:00:09 > 0:00:13who know every trick in the book to get you to part with your cash.
0:00:29 > 0:00:33Coming up, the scam that targets people who want to train
0:00:33 > 0:00:35for a new career.
0:00:35 > 0:00:39The hopes of obviously my career in the future of driving HGVs
0:00:39 > 0:00:41is slowly starting to vanish.
0:00:41 > 0:00:44It's a light at the end of a tunnel, it's miles away now.
0:00:44 > 0:00:46And we hear about the bogus share scheme
0:00:46 > 0:00:50that went after people's hard-earned savings.
0:00:50 > 0:00:52The sort of victims that we were seeing,
0:00:52 > 0:00:54they couldn't afford to lose the money.
0:00:54 > 0:00:58Well, I'm here to tell you what the con man doesn't want you to know -
0:00:58 > 0:01:02how to stay one step ahead of the game and not get scammed.
0:01:06 > 0:01:09Here's a question for you to ponder -
0:01:09 > 0:01:13what's the difference between a salesman and a scam artist?
0:01:13 > 0:01:14OK, time's up.
0:01:14 > 0:01:17In most cases, the only difference is
0:01:17 > 0:01:21that a scam artist sells a product that doesn't exist.
0:01:22 > 0:01:25And when the thing they're pretending to sell
0:01:25 > 0:01:30promises someone a career for life, it can be doubly devastating.
0:01:30 > 0:01:32I'm on my way to meet 23-year-old Steve
0:01:32 > 0:01:35who's recently been the target
0:01:35 > 0:01:37of a scam that played on his hopes and dreams.
0:01:37 > 0:01:42Steve's been unemployed for the last six months,
0:01:42 > 0:01:46but unlike many people his age, he knows exactly what job he wants.
0:01:46 > 0:01:48You see, since Steve was a little lad,
0:01:48 > 0:01:50he's dreamt of becoming a lorry driver.
0:01:50 > 0:01:53Why did you want to be a driver?
0:01:53 > 0:01:56It's just something I've always wanted to do since I was a child.
0:01:56 > 0:01:58I went with a friend of the family when we were young,
0:01:58 > 0:02:00on journeys up north in his truck.
0:02:00 > 0:02:02So it's just something where I've played with the idea
0:02:02 > 0:02:04and now I'm old enough to get my licence
0:02:07 > 0:02:12In late 2010, Steve decided to try and make his dream a reality,
0:02:12 > 0:02:15but sadly, that was about to make him a perfect target
0:02:15 > 0:02:16for a group of con men.
0:02:16 > 0:02:18If you want to become a lorry driver,
0:02:18 > 0:02:21you need a HGV licence and they don't come easy.
0:02:21 > 0:02:24You need to pass tests, have special training,
0:02:24 > 0:02:26and even undergo a medical.
0:02:26 > 0:02:30But there are firms of brokers who can arrange all of this for you
0:02:30 > 0:02:32for one single fee.
0:02:32 > 0:02:35Sadly, though, as industry experts have seen,
0:02:35 > 0:02:37a minority of these brokers
0:02:37 > 0:02:40have turned out to be nothing more than scam artists.
0:02:42 > 0:02:45There are some brokers out there that will just take your money
0:02:45 > 0:02:47and not deliver any training - full stop.
0:02:48 > 0:02:52And unfortunately, the con men are able to exploit the fact
0:02:52 > 0:02:54that almost anyone can set themselves up
0:02:54 > 0:02:56as an HGV training company.
0:02:56 > 0:03:00A lot of people are not aware
0:03:00 > 0:03:03that our industry is not regulated, not regulated at all.
0:03:03 > 0:03:06Which makes life a lot easier for the scammer.
0:03:06 > 0:03:08But as Steve began searching the internet
0:03:08 > 0:03:10to find a HGV training company,
0:03:10 > 0:03:13he had no idea he may end up dealing with con men.
0:03:16 > 0:03:18First of all, the scams are mainly conducted
0:03:18 > 0:03:22where they attract people initially is via their websites,
0:03:22 > 0:03:25where they give people the overwhelming impression
0:03:25 > 0:03:28that they are both a training company
0:03:28 > 0:03:30and a recruitment specialist as well.
0:03:30 > 0:03:32But it's sold as a very easy fast-track
0:03:32 > 0:03:36to making some serious money.
0:03:36 > 0:03:40They take all your details, take the money off you,
0:03:40 > 0:03:44arrange the theory test
0:03:44 > 0:03:46and arrange the medical and then send you to somebody
0:03:46 > 0:03:50who's got a fleet full of vehicles themselves.
0:03:50 > 0:03:52You're looking at a one-stop shop?
0:03:52 > 0:03:57I was looking to get it done as soon as possible, but also as efficiently as possible.
0:03:57 > 0:03:59So they could organise it all for me.
0:03:59 > 0:04:03Did you find any recommendations or endorsements from anybody else?
0:04:03 > 0:04:05They did say, on the website,
0:04:05 > 0:04:08it did have on the bottom a logo for the RHA,
0:04:08 > 0:04:10which is the Road Haulage Association.
0:04:10 > 0:04:12So I looked at it and I thought,
0:04:12 > 0:04:15you know, I've heard of the Road Haulage Association.
0:04:15 > 0:04:17Let's talk about the first conversation you had
0:04:17 > 0:04:19with the company we're talking about.
0:04:19 > 0:04:21He was quite helpful and he wasn't very pushy.
0:04:21 > 0:04:23He wasn't like, "Can you make a payment?"
0:04:23 > 0:04:26I suppose it put my mind at rest
0:04:26 > 0:04:30that I'm speaking to someone who's interested in me as a person
0:04:30 > 0:04:32rather than just how I'm going to pay for it.
0:04:32 > 0:04:35The fact that he showed an interest in you,
0:04:35 > 0:04:39that immediately gets you more engaged than you were previously.
0:04:39 > 0:04:42Now, there are several stages to becoming a HGV driver.
0:04:42 > 0:04:43First you need to have a medical,
0:04:43 > 0:04:46then you need to get a provisional licence and take a theory test.
0:04:46 > 0:04:50And finally, you must do a minimum of five days' practical training.
0:04:50 > 0:04:52The company Steve had spoken to
0:04:52 > 0:04:56said they could arrange all of this, and more.
0:04:56 > 0:05:00Everything from him filling out obviously all the forms on my behalf
0:05:00 > 0:05:02to booking my theory test, to booking my medical,
0:05:02 > 0:05:04to booking my practical lessons.
0:05:04 > 0:05:06From start to finish, he would take care of everything.
0:05:06 > 0:05:09but what Steve didn't realise was that it was all an illusion,
0:05:09 > 0:05:12designed to make him part with his cash.
0:05:14 > 0:05:16These brokers, in reality,
0:05:16 > 0:05:18they employ no instructors,
0:05:18 > 0:05:20they have no training vehicles,
0:05:20 > 0:05:23and the jobs that they advertise on their website
0:05:23 > 0:05:25are normally taken from other websites
0:05:25 > 0:05:28who are agencies, recruitment agencies,
0:05:28 > 0:05:31so they are not a recruitment specialist either.
0:05:31 > 0:05:34'The salesman had already done enough, though,
0:05:34 > 0:05:37'to convince Steve that his company was the one to go for,
0:05:37 > 0:05:39'and they began talking money.'
0:05:39 > 0:05:41And did they put a price on that at that stage?
0:05:41 > 0:05:43Yeah, it was £2,400.
0:05:43 > 0:05:49What we've got is someone who is friendly enough, he's clear.
0:05:49 > 0:05:51You've got a course which looks like it's the real deal
0:05:51 > 0:05:54and a price that's in the right bracket.
0:05:54 > 0:05:56- Yeah, that was it, yeah. - Perfectly convincing?
0:05:56 > 0:05:58Perfectly convincing, yeah.
0:05:58 > 0:06:01The company had Steve exactly where they wanted him
0:06:01 > 0:06:03and he signed up to their course.
0:06:03 > 0:06:07They didn't ask for the full £2,400 upfront,
0:06:07 > 0:06:10instead they asked Steve for a £200 deposit
0:06:10 > 0:06:14so they could go ahead and arrange his theory test and medical.
0:06:16 > 0:06:19Once the DVLA had received the results of Steve's medical,
0:06:19 > 0:06:21they sent him his provisional licence.
0:06:21 > 0:06:27Steve was now officially on the road to becoming a truck driver.
0:06:28 > 0:06:30Initially, Steve had only paid £200
0:06:30 > 0:06:34towards the £2,400 cost of his training
0:06:34 > 0:06:37and he knew he'd have to start paying off the balance.
0:06:37 > 0:06:40But the company seemed happy for him to pay in instalments,
0:06:40 > 0:06:44so before he moved on to the theory test stage of his training,
0:06:44 > 0:06:46Steve paid a further £500.
0:06:48 > 0:06:52Then you're 700 quid in,
0:06:52 > 0:06:54- absolutely no reason to think there's anything wrong.- No.
0:06:54 > 0:06:56Not at all.
0:06:56 > 0:07:01Steve spent the next few weeks revising for his theory test,
0:07:01 > 0:07:03but a few days before the exam,
0:07:03 > 0:07:05the training company were back on the phone
0:07:05 > 0:07:07and they were about to test Steve's faith in them.
0:07:07 > 0:07:10The salesman now wanted to know
0:07:10 > 0:07:14how Steve was going to pay his outstanding balance
0:07:14 > 0:07:17which was over 1,500 quid.
0:07:17 > 0:07:20I explained that me mum will borrow me the money.
0:07:20 > 0:07:22He then asked for a conversation with my mum.
0:07:22 > 0:07:24I thought he wanted to talk through
0:07:24 > 0:07:26whether she's going to set up a direct debit
0:07:26 > 0:07:28or some sort of payment.
0:07:28 > 0:07:30I went upstairs, I passed the phone to my mum,
0:07:30 > 0:07:32and I went upstairs and came back down
0:07:32 > 0:07:35and she told me that she'd paid it in full.
0:07:35 > 0:07:39'Steve felt indebted to his mum, but with the course paid up in full,
0:07:39 > 0:07:43'he could now really focus on getting his licence.'
0:07:43 > 0:07:46- So your theory test comes? - The theory test comes.- You nail it?
0:07:46 > 0:07:49- Yeah, I nail it, yeah. - Nice one.- Yeah.
0:07:49 > 0:07:51'But the feeling wasn't to last.
0:07:51 > 0:07:52'Steve was now waiting for a date
0:07:52 > 0:07:54'to start his practical driving training
0:07:54 > 0:07:58'and the salesman who he'd started to think of as a mate
0:07:58 > 0:08:00'suddenly didn't seem so keen to chat.'
0:08:00 > 0:08:03So then I was constantly ringing -
0:08:03 > 0:08:05once, two, three, four times a day,
0:08:05 > 0:08:07they wouldn't answer.
0:08:07 > 0:08:09He'd then answer and explain that,
0:08:09 > 0:08:11"I'm not in the office at the moment.
0:08:11 > 0:08:13"I'll call you back tomorrow."
0:08:13 > 0:08:15Tomorrow would come, I wouldn't have a phone call.
0:08:15 > 0:08:17I'd be sitting here, doing nothing.
0:08:17 > 0:08:20After another week of fobbing Steve off,
0:08:20 > 0:08:22someone else from the company rang
0:08:22 > 0:08:26to explain that the salesman he'd been dealing with
0:08:26 > 0:08:29had been away from the office for personal reasons.
0:08:29 > 0:08:32I said, "Can you arrange it? Can you do it on his behalf?"
0:08:32 > 0:08:35At this stage, are you also thinking,
0:08:35 > 0:08:39"Hold on, this is not my money that's been spent here"?
0:08:39 > 0:08:42How much of an effect does that have on the way you are thinking?
0:08:42 > 0:08:45When you borrow money off somebody to pay for something,
0:08:45 > 0:08:48obviously, you want to pay them back as soon as possible.
0:08:48 > 0:08:53- And it's your mum. - And it's me mum, yeah.
0:08:58 > 0:09:01But Steve was about to find out
0:09:01 > 0:09:03that the trust he and his mum had placed in the company
0:09:03 > 0:09:06had been cruelly abused.
0:09:06 > 0:09:09The new person Steve was dealing with
0:09:09 > 0:09:11would no longer answer his phone.
0:09:11 > 0:09:14Because the company's office was hundreds of miles away,
0:09:14 > 0:09:16Steve couldn't go and knock on their door.
0:09:16 > 0:09:19So he went back online to see if he could find any information.
0:09:22 > 0:09:27I come across a website with quite a bit of information.
0:09:27 > 0:09:29He'd found a forum where others were complaining
0:09:29 > 0:09:32that they'd been cheated out of thousands of pounds
0:09:32 > 0:09:35by the same company in the same way.
0:09:35 > 0:09:37They got as far as their theory test,
0:09:37 > 0:09:39but when it was time for practical training,
0:09:39 > 0:09:42the company went quiet.
0:09:42 > 0:09:44So as you're reading this website
0:09:44 > 0:09:50full of comments that match exactly your experience, pretty much,
0:09:50 > 0:09:52what's going through your mind?
0:09:52 > 0:09:54How am I going to have to go in the house
0:09:54 > 0:09:57and tell my mum about this information?
0:09:57 > 0:09:59That money you borrowed me, it's gone.
0:09:59 > 0:10:02But Steve's fears were slowly being confirmed.
0:10:02 > 0:10:04He phoned the Road Haulage Association
0:10:04 > 0:10:08who the company had claimed had given them a stamp of approval.
0:10:08 > 0:10:11But the RHA had never heard of them,
0:10:11 > 0:10:14so Steve reported the firm to Trading Standards and the police.
0:10:14 > 0:10:16He now had to come to terms with the fact
0:10:16 > 0:10:19that his dream of becoming a lorry driver
0:10:19 > 0:10:20was well and truly parked.
0:10:23 > 0:10:25It's gone.
0:10:25 > 0:10:27Tell me about the five minutes
0:10:27 > 0:10:32before you explained to your mum what had happened to her money?
0:10:33 > 0:10:38I come in and I remember she was by the back door, washing.
0:10:38 > 0:10:41I just joked and said,
0:10:41 > 0:10:45"That company, I think it's had me on."
0:10:45 > 0:10:47She's like, "What do you mean?"
0:10:47 > 0:10:50Putting things in the washing machine. I'm like, "Yeah."
0:10:50 > 0:10:53And then it wasn't until I actually showed her the information
0:10:53 > 0:10:58where she was like, "OK. Right, where do we go from here?"
0:10:58 > 0:11:02It's now up to the authorities to investigate the rogue firm,
0:11:02 > 0:11:03but it's extremely unlikely
0:11:03 > 0:11:07that Steve and his mum will get any of their money back,
0:11:07 > 0:11:09but at least Steve has had the courage
0:11:09 > 0:11:10to come forward and share his story,
0:11:10 > 0:11:14because many who are caught out by this scam wouldn't.
0:11:17 > 0:11:18Can I suggest why it happened?
0:11:18 > 0:11:24- Yeah.- Because you really wanted something,
0:11:24 > 0:11:25someone offered it to you,
0:11:25 > 0:11:30they made it look like you were going to get it,
0:11:30 > 0:11:33they conned you by getting to your mum,
0:11:33 > 0:11:39and then the thing that they were offering didn't exist.
0:11:39 > 0:11:41- That's it.- Yeah.
0:11:41 > 0:11:44- That's how they did it. - In a nutshell.
0:11:44 > 0:11:47If you want to be a lorry driver,
0:11:47 > 0:11:49how can you protect yourself against the scam artists
0:11:49 > 0:11:53and dodgy brokers who'll leave you stranded on the hard shoulder?
0:11:53 > 0:11:55The first thing is,
0:11:55 > 0:11:57be aware of companies who claim
0:11:57 > 0:12:01that they have 25, 30, 40 training centres around the UK.
0:12:01 > 0:12:03The simple fact of the matter is
0:12:03 > 0:12:06there are no national HGV training companies.
0:12:06 > 0:12:11If you can, try and see the company or training centre for yourself.
0:12:13 > 0:12:17Visit the training company. Don't part with any money over the phone.
0:12:17 > 0:12:21If it sounds too good to be true, it normally is.
0:12:21 > 0:12:23And our best piece of advice is
0:12:23 > 0:12:26if you are serious about a career as a truck driver,
0:12:26 > 0:12:29then go direct to a reputable, established training company
0:12:29 > 0:12:30in your area.
0:12:30 > 0:12:31And there are plenty of them around.
0:12:31 > 0:12:34It's just a case of doing your research
0:12:34 > 0:12:38and speaking to independent organisations who can offer advice.
0:12:38 > 0:12:41Sadly, all of this is too late for Steve.
0:12:41 > 0:12:45They've sold me an idea that I've obviously took
0:12:45 > 0:12:47and I thought, "Yeah!" and that's how they've got me.
0:12:52 > 0:12:53For most people,
0:12:53 > 0:12:57making investments isn't about trying to turn a fast buck.
0:12:57 > 0:13:00It's about making the most of your hard-earned savings
0:13:00 > 0:13:01so you can plan for the future.
0:13:01 > 0:13:05And of course, one of the oldest and best-known forms of investment
0:13:05 > 0:13:06is in the stock market.
0:13:06 > 0:13:08Here's the good news.
0:13:08 > 0:13:11You don't have to be a stockbroker to buy shares.
0:13:11 > 0:13:14You can balance risk and reward for your own profit.
0:13:14 > 0:13:18On a slightly less optimistic note,
0:13:18 > 0:13:22you can also find out later that your shares don't actually exist.
0:13:24 > 0:13:28And in 2007, a group of ordinary, hard-working people were contacted
0:13:28 > 0:13:32by a reputable-sounding firm of stockbrokers.
0:13:32 > 0:13:35and offered a golden opportunity to boost their savings.
0:13:35 > 0:13:37They were being given the rare chance
0:13:37 > 0:13:41to buy shares in a company that hadn't yet come to market.
0:13:41 > 0:13:46It was an investment into a fantastic company called EduVest
0:13:46 > 0:13:51which was supposedly a company investing in education.
0:13:51 > 0:13:54People were told that if they invested in EduVest PLC,
0:13:54 > 0:13:57they could make their money back three or four times over.
0:13:57 > 0:14:01One of the people who went ahead and bought shares is Alan.
0:14:02 > 0:14:04Alan isn't his real name,
0:14:04 > 0:14:06but because he's concerned about repercussions
0:14:06 > 0:14:09he's asked us to conceal his identity.
0:14:09 > 0:14:13Like thousands of people in the UK, Alan wanted to invest in the stock market
0:14:13 > 0:14:16so he could look forward to a comfortable retirement.
0:14:16 > 0:14:20I'd planned on retiring when I was 55
0:14:20 > 0:14:24and so, to do that, I needed to have something substantial
0:14:24 > 0:14:27to back me up until I got to my pension age.
0:14:29 > 0:14:32And from what Alan had been told, investing in EduVest PLC
0:14:32 > 0:14:36would help him boost his retirement savings no end.
0:14:36 > 0:14:39But what he and other investors didn't know,
0:14:39 > 0:14:42is that EduVest PLC was a scam.
0:14:43 > 0:14:46Share-related scams have been going on for decades
0:14:46 > 0:14:48and are often known as boiler-room frauds
0:14:48 > 0:14:51because they were run from dingy utility rooms
0:14:51 > 0:14:53in the basements of office blocks.
0:14:53 > 0:14:56Boiler-room fraud is something that's been around,
0:14:56 > 0:14:59I'm sorry to say, for as long as the stock markets have been around.
0:14:59 > 0:15:04And wherever there's an opportunity to scam money out of people,
0:15:04 > 0:15:07I think it will always exist.
0:15:07 > 0:15:11The basic principle is always the same -
0:15:11 > 0:15:13to sell shares that are either worthless or non-existent.
0:15:13 > 0:15:18It's something the FSA, the Financial Services Authority,
0:15:18 > 0:15:20are working hard to stamp out,
0:15:20 > 0:15:23and Jonathan Phelan is their head of retail enforcement.
0:15:23 > 0:15:25I run the unauthorised business department
0:15:25 > 0:15:30and our job is to look at 5,000 or so reports that we get every year
0:15:30 > 0:15:32of unauthorised business
0:15:32 > 0:15:35and we see which ones are causing most harm to society
0:15:35 > 0:15:37and we try and tackle those.
0:15:37 > 0:15:41And the FSA team would soon be tackling EduVest PLC,
0:15:41 > 0:15:45but not before the company had scammed innocent investors.
0:15:45 > 0:15:47For Alan, who'd invested in shares before,
0:15:47 > 0:15:51it all began with a cold call from a stockbroker called Ben
0:15:51 > 0:15:53who said he worked for a blue-chip investment firm
0:15:53 > 0:15:56in London's financial district.
0:15:56 > 0:15:59The absolutely crucial sign is that you will get a cold call,
0:15:59 > 0:16:01a call out of the blue.
0:16:01 > 0:16:02You won't have invited it.
0:16:02 > 0:16:03If you challenge them,
0:16:03 > 0:16:06they might try and convince you that you did invite it
0:16:06 > 0:16:10by ticking a form on a page or on a website,
0:16:10 > 0:16:13but the reality is you didn't really want that call.
0:16:13 > 0:16:16In a classic boiler-room tactic,
0:16:16 > 0:16:18Ben slowly built up Alan's trust
0:16:18 > 0:16:21by ringing every week or so, usually just for a chat.
0:16:22 > 0:16:26He'd ring up and he'd be on the phone for 20 minutes
0:16:26 > 0:16:28or half an hour sometimes,
0:16:28 > 0:16:30just general conversation.
0:16:30 > 0:16:32"How are you going on?
0:16:32 > 0:16:35"What have you been doing this week?"
0:16:35 > 0:16:38They will try to get an idea of what sort of investor you are.
0:16:38 > 0:16:42We did talk about different stocks and shares.
0:16:42 > 0:16:47He asked me about my portfolio, what I'd got in where.
0:16:47 > 0:16:49Once they've manoeuvred you where they want you to be,
0:16:49 > 0:16:52that's when they'll try to extract the money out of you.
0:16:52 > 0:16:55And in Alan's case, that began when, one day,
0:16:55 > 0:16:58Ben told him about a fantastic opportunity
0:16:58 > 0:17:02involving a brand new company, EduVest PLC,
0:17:02 > 0:17:05and Alan was told it was an investment firm
0:17:05 > 0:17:07specialising in education.
0:17:07 > 0:17:09Ben suggested that Alan look at the EduVest website
0:17:09 > 0:17:13and he went on to explain that buying shares in the fledgling company
0:17:13 > 0:17:15was an opportunity to make serious money.
0:17:15 > 0:17:19He said when it came to market it should take off
0:17:19 > 0:17:23and I could treble my investment.
0:17:23 > 0:17:27Alan was impressed by what he saw, but more than anything,
0:17:27 > 0:17:30it was his relationship with Ben that really sealed the deal.
0:17:30 > 0:17:35I trusted him. You see, he wasn't with EduVest.
0:17:35 > 0:17:38He was like an adviser.
0:17:38 > 0:17:41The con men had Alan right where they wanted him
0:17:41 > 0:17:43and they began to talk money.
0:17:43 > 0:17:48Well, I said I'd be interested to have a bit of a punt on them.
0:17:48 > 0:17:50I said about 2,000 shares.
0:17:53 > 0:17:55In a moment he would soon come to regret,
0:17:55 > 0:18:00Alan found himself writing out a cheque for £2,000.
0:18:00 > 0:18:03And three weeks later, doubts began to set in.
0:18:03 > 0:18:06Alan had been promised paperwork to confirm the shares were his,
0:18:06 > 0:18:08but nothing had arrived.
0:18:08 > 0:18:11So he got on the phone to Ben.
0:18:11 > 0:18:15He said, "You should have received some sort of acknowledgement.
0:18:15 > 0:18:19"I'll get on to them." And about a week or so after that,
0:18:19 > 0:18:23I received a letter thanking me for my investment in their company
0:18:23 > 0:18:26and when it came to market in June,
0:18:26 > 0:18:29that's when the share certificates would be posted off.
0:18:30 > 0:18:33But June came and went and Alan heard nothing more.
0:18:33 > 0:18:35So he got back on the phone to Ben,
0:18:35 > 0:18:39the broker he thought he could trust.
0:18:39 > 0:18:42I was getting no reply. And then bells started ringing.
0:18:42 > 0:18:47Alan couldn't get hold of Ben or anyone to do with EduVest,
0:18:47 > 0:18:52and he was now beginning to wonder where his £2,000 had gone.
0:18:52 > 0:18:55It looked like I'd just chucked £2,000 away.
0:18:55 > 0:18:57But Alan wasn't going to take it lying down,
0:18:57 > 0:19:00and he decided to get in touch with the FSA.
0:19:03 > 0:19:05When I spoke to the FSA
0:19:05 > 0:19:09and they said there was nothing down about the company,
0:19:09 > 0:19:12that's when I realised that...
0:19:12 > 0:19:14I'd been conned.
0:19:14 > 0:19:19He'd been told it was an investment into a fantastic company called EduVest,
0:19:19 > 0:19:23which was supposedly a company investing in education.
0:19:23 > 0:19:27Actually it didn't really operate a real business.
0:19:27 > 0:19:29With a serious complaint to investigate,
0:19:29 > 0:19:34Jonathan and his team's first task was to get the full story from Alan.
0:19:35 > 0:19:38The FSA got in touch with me
0:19:38 > 0:19:43and asked for a statement about what had gone off.
0:19:43 > 0:19:45And I filled in a statement
0:19:45 > 0:19:49and then they came up and interviewed me.
0:19:49 > 0:19:51The most crucial piece of information
0:19:51 > 0:19:54Alan was able to give the FSA investigators
0:19:54 > 0:19:59was the name of the bank account into which he'd paid his money.
0:19:59 > 0:20:03The account was UK based, which meant Jonathan and his team had the authority to access it
0:20:03 > 0:20:08and when they did, the shocking scale of the scam was revealed.
0:20:08 > 0:20:11We were able to look into the bank account
0:20:11 > 0:20:15and find one account concerning EduVest
0:20:15 > 0:20:20that didn't just contain the first victim who had called us,
0:20:20 > 0:20:24it didn't just contain HIS money, but it contained £270,000.
0:20:24 > 0:20:29The 270,000 had been paid in by 32 innocent investors
0:20:29 > 0:20:31just like Alan.
0:20:33 > 0:20:36And that led us to look at where that money had gone
0:20:36 > 0:20:40and we found that it led to an individual called Mason.
0:20:40 > 0:20:44The FSA now had a prime suspect.
0:20:44 > 0:20:48A 29-year-old ex-sales adviser called David Mason.
0:20:48 > 0:20:51And it was time to pay him a little visit.
0:20:51 > 0:20:56The powers we then had were to execute search warrants
0:20:56 > 0:20:59at various properties.
0:20:59 > 0:21:01With the evidence they seized,
0:21:01 > 0:21:05Jonathan and his team uncovered some of the devious tactics Mason used
0:21:05 > 0:21:08to con 32 people out of their savings.
0:21:08 > 0:21:13Mason set up a client relations manager who didn't actually even exist,
0:21:13 > 0:21:18but this fake client relations manager wrote to the customers
0:21:18 > 0:21:21and said, "Thank you for investing in EduVest,
0:21:21 > 0:21:23"we will send you reports from time to time."
0:21:23 > 0:21:28This was part of Mason's plan to convince people that EduVest PLC
0:21:28 > 0:21:32was a serious company that they should buy shares in.
0:21:32 > 0:21:37What EduVest really was, was a shell company
0:21:37 > 0:21:41and that means what it says on the tin, as it were.
0:21:41 > 0:21:44A shell company doesn't have anything within it.
0:21:44 > 0:21:48It didn't really do anything. It was just a vehicle for a fraud.
0:21:48 > 0:21:54Mason had also managed to rope in an unsuspecting financial adviser
0:21:54 > 0:21:57who worked for a legitimate FSA-registered company.
0:21:57 > 0:22:00The adviser provided Mason with a client bank account,
0:22:00 > 0:22:03which Mason then used for EduVest PLC.
0:22:03 > 0:22:06This helped convince investors they were paying money
0:22:06 > 0:22:08to a legitimate UK business.
0:22:08 > 0:22:14If you can give them a UK bank account of a known firm that you can look up on
0:22:14 > 0:22:18the FSA register or look up on a website, then you might feel
0:22:18 > 0:22:21a little more comfortable that you are paying your money
0:22:21 > 0:22:23at least to a UK company.
0:22:23 > 0:22:26All Mason needed now was a sales team
0:22:26 > 0:22:28to flog his non-existent shares,
0:22:28 > 0:22:31and that's where the boiler rooms came in.
0:22:31 > 0:22:33Mason set up six boiler rooms
0:22:33 > 0:22:37and they were all abroad, to try to avoid UK law.
0:22:37 > 0:22:40Those six boiler rooms based abroad
0:22:40 > 0:22:43had their list of potential victims that they could call.
0:22:43 > 0:22:47Using the script that Mason set up for them about EduVest,
0:22:47 > 0:22:50they would start selling shares in EduVest.
0:22:50 > 0:22:54Alan spent months dealing with a so-called stockbroker called Ben
0:22:54 > 0:22:57who worked in one of the boiler rooms,
0:22:57 > 0:23:01but it never occurred to him that Ben might be overseas.
0:23:01 > 0:23:07I sort of envisaged him working in this office in the City of London
0:23:07 > 0:23:10and he was quite believable.
0:23:10 > 0:23:13Mason had everything in place to pull off his scam
0:23:13 > 0:23:15and it was only a matter of time
0:23:15 > 0:23:18before 32 innocent investors were drawn in.
0:23:19 > 0:23:25The victims we were seeing, they couldn't afford to lose the money.
0:23:25 > 0:23:28They were elderly, in the majority.
0:23:28 > 0:23:33We even found one who, having died, his widow had been approached
0:23:33 > 0:23:36by the boiler room, knowing that her husband had died
0:23:36 > 0:23:38and they still tried to scam her out of money.
0:23:38 > 0:23:43As long as the money kept rolling in, Mason didn't seem to care.
0:23:43 > 0:23:45With statements from the unlucky investors,
0:23:45 > 0:23:51a trail of bank statements and a series of e-mails,
0:23:51 > 0:23:53the FSA had gathered overwhelming evidence against Mason
0:23:53 > 0:23:57and in June 2011, their efforts paid off.
0:23:59 > 0:24:02The outcome of the case was a successful conviction.
0:24:02 > 0:24:07Mason pleaded guilty to 13 offences
0:24:07 > 0:24:11relating to setting up or assisting with the setting up
0:24:11 > 0:24:15of a boiler room, plus additional charges relating to money laundering
0:24:15 > 0:24:17and making false and misleading statements.
0:24:17 > 0:24:21Mason was sentenced to two years inside,
0:24:21 > 0:24:23which was a great result for Jonathan and his team
0:24:23 > 0:24:27and the FSA's first-ever criminal conviction.
0:24:27 > 0:24:30For investors like Alan, justice had been done,
0:24:30 > 0:24:34but there was even better news just around the corner.
0:24:34 > 0:24:38I got a phone call from one of the FSA guys and he said,
0:24:38 > 0:24:40"I've got some good news for you."
0:24:40 > 0:24:43He told me I would be getting my investment back
0:24:43 > 0:24:47because they had confiscated it. It was in the bank.
0:24:47 > 0:24:53So I just breathed a sigh of relief that I wasn't £2,000 out of pocket.
0:24:53 > 0:25:01For further advice on how to protect yourself against scams, go to:
0:25:07 > 0:25:09Before we go, there's just time to tell you
0:25:09 > 0:25:12about some of the latest scams out there,
0:25:12 > 0:25:16and I'm meeting an expert at the National Fraud Authority
0:25:16 > 0:25:19to get the low-down on what you should be looking out for.
0:25:21 > 0:25:23Today, we're looking at scams
0:25:23 > 0:25:26targeting people who want their 15 minutes of fame.
0:25:29 > 0:25:33These can range from those who want to set up
0:25:33 > 0:25:34as a false modelling agency,
0:25:34 > 0:25:39a false agency for singing, for acting and for dancing,
0:25:39 > 0:25:43and they are all promised that you are the person they are looking for
0:25:43 > 0:25:45and that others are looking for.
0:25:45 > 0:25:48We can take the photographs of you, take the video, charge you a couple
0:25:48 > 0:25:52of hundred quid, but it's worth it, because we'll make you a star.
0:25:52 > 0:25:55Really, the damage is done to the kids' confidence,
0:25:55 > 0:25:58once they find out it was all a bag of lies.
0:25:58 > 0:26:02Genuine talent agencies earn commission on the work
0:26:02 > 0:26:05they get for you, so if you have really got what it takes,
0:26:05 > 0:26:07they shouldn't be asking you for money upfront.
0:26:07 > 0:26:11Next up, a scam that targets a different type of fame hunter.
0:26:11 > 0:26:14Everyone's meant to have a book in them,
0:26:14 > 0:26:18so they will put adverts in or send things on the website
0:26:18 > 0:26:21and e-mails saying they can publish your work.
0:26:21 > 0:26:24You send off your manuscript, they say it's great,
0:26:24 > 0:26:26they're sure they can print it,
0:26:26 > 0:26:30but they need some fees upfront to make this happen.
0:26:30 > 0:26:33It's called vanity publishing businesses,
0:26:33 > 0:26:35these scam companies. They take your money,
0:26:35 > 0:26:38they've probably thrown your manuscript in the bin.
0:26:38 > 0:26:41If you're really serious about selling your novel,
0:26:41 > 0:26:44do some research to find the right publisher for you
0:26:44 > 0:26:49and then do background checks to make sure they are a bona fide firm.
0:26:49 > 0:26:51There you go.
0:26:51 > 0:26:54It doesn't matter how clever the scam is, if you recognise
0:26:54 > 0:26:58the warning signs, you can stay one step ahead of the con men.
0:26:58 > 0:27:00Stay safe. See you next time.
0:27:02 > 0:27:05Subtitles by Red Bee Media Ltd