Boiler Room 2010

If you would have told me a couple of years ago that a boiler room type operation could exist and prosper in this day and age I would have called you all kinds of offensive shit, but I have since seen it with my own eyes and even spent some time working as a "Broker" at one of these “firms” – just long enough to realize the place was a joke and move the hell on.

At this fine institution salesmen would make 500-1000 calls a day to strangers, open the conversation by pretending like they’ve spoken to the victim before and left him with a stock to track – one that recently spiked hard, of course. They’d proceed to spew rehearsed lines of bullshit about a stock that’s “even better than that last hot tip,” i.e. a small pharmaceutical company that’s got the cure for obesity and is set to shoot to the moon just as soon as their data is released. They lie about their methods, pretending to pick their stocks based on the exclusive research of this or that analyst when in reality all they look for in a stock is a sexy story to sell; win, lose or draw they will whack the victim with up to 5% in commissions to pull out his money once he’s had enough. They prey on the easily excitable, the compulsive gamblers, the elderly, and the various not-all-theres, and they do it without a speck of remorse or humanity. Not sure if price manipulation is part of their repertoire in 2010, seems like it’d be much more difficult to do with a NASDAQ listed company with a half billion market cap than with the penny stocks of old, but in talking with guys who have worked for similar operations it seems like the same 2-3 small cap stocks are being pushed by everyone and with collusion between a number of chop shops it's not too far fetched.

I think it’s important for people who have worked for and/or been bit by people like this to share their experience. It’s absurd that this kind of stuff still goes on. I would encourage everyone to name specific names of places you know that operate in this manner; they rely on a lack of information to a large degree and if this kind of stuff comes up when their names are googled then maybe we can help save some poor sap’s retirement money.

 

I own a business that is listed with Duns and Bradstreet , they got my # from their list and their pitch is out right ..."I got the next hottest stock and my analyst is on cnn all the time" bullshit, telling me AKS steel is in potential buy out talks and the stock will shoot %50 within the next 8 weeks... I just stay on the phone and take them for a ride lol. I was actually thinking about calling FINRA on their asses.

ohh yeah the company name is "NATIONAL SECURITIES" by the way!

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 
barboon:
I own a business that is listed with Duns and Bradstreet , they got my # from their list and their pitch is out right ..."I got the next hottest stock and my analyst is on cnn all the time" bullshit, telling me AKS steel is in potential buy out talks and the stock will shoot %50 within the next 8 weeks... I just stay on the phone and take them for a ride lol. I was actually thinking about calling FINRA on their asses.

ohh yeah the company name is "NATIONAL SECURITIES" by the way!

Haha, that is great. I would LOVE to get a call from some douchebag trying to pitch me a stock. I'd school that ass.

What did you say to the guy, and how did he respond to that?

 
Best Response
ThaVanBurenBoyz:
barboon:
I own a business that is listed with Duns and Bradstreet , they got my # from their list and their pitch is out right ..."I got the next hottest stock and my analyst is on cnn all the time" bullshit, telling me AKS steel is in potential buy out talks and the stock will shoot %50 within the next 8 weeks... I just stay on the phone and take them for a ride lol. I was actually thinking about calling FINRA on their asses.

ohh yeah the company name is "NATIONAL SECURITIES" by the way!

Haha, that is great. I would LOVE to get a call from some douchebag trying to pitch me a stock. I'd school that ass.

What did you say to the guy, and how did he respond to that?

It went something like this:

Him: Hi is .... available?

Me: speaking, how may I help you?

Him: This is... (i dont remember his name i would so call it out) from National securities.

Me: National security?!!?!?!

him: haha, No securities!

Me: how the hell did you get this number?? why didnt you call my office? (I dont have one anymore lol)

Him: we paid Duns and brandstreet for it, your number and name is listed as the principal on the business. the reason I'm calling you today is to share information on a great company that you should be following they are doing great! AKS Steel! their stock is posed to blow up withing the next 8-10 weeks! Institutions are buying it now and I heard from the grapevine that there is talks of a potential Buy out... but you didn't hear this from me haha (I'm like OK inside info). Are you an active investor? how much money do you have in the market?

Me: Around 250k, what do their balance sheet look like? how much cash in hand, how much debt and EBITDA?

Him: EBIwhaaaa??? sir that's not the point! everyone is getting on this stock RIGHT NOW institutions are buying it!!! (Im like..WTF lololol) all Im asking for you today is that you commit $10K to this investment!!

Me: Really?!!? like the big Hedge funds and the banks?!?(trying to sound naive), do you know who??

Him: The BIG WALL STREET FIRMS!! ......all I'm asking is that you jump on board today $10k! a drop in the bucket for what you have in the market!

Me: I dont know, I dont know you, you called me out of no where, I've never heard from your firm... for all I know you are an office in a stripmall in staten Island!

Him: I dont know where that is, NO. My analyst (joker #2 dont remember his name) is on CNN all the time! he is famous and he is always right on the money mr... all the indicators have the thumbs up for this one! how about you commit $8k?

Me: I'm sorry Im not liquid right now, my wife would kill me if I just send you money (I'm not married).

Him: You don't have to send in a check for a week I'll set you up with an account today and you just send me a check next week!

Me: Wait how much are you going to charge me to do this trades? my advisor currently charges me 1% a year.

Him: Well, here it will be per trade but we will make money! it will be around 5%

Me: what are you nuts?!!? 2.5% in 2.5% out?

Him: no, but really if you are making money it's nothing. Let's get you set up! Im telling you this stocks indicators are pointing to at least 40-50%!!! (He is starting to get all upset at this point)

Me: How do you know?

Him: my analyst blah blah blah (repeat from above)

Me: Ok so if I say yes right now, are you going to put me on the phone with your SENIOR ADVISOR???

him: CLICK! (hung up)

I would have loved to call him back and pull his chain a lil more but he called ... BLOCKED! is there idiots that really fall for some joker that sounds like he is reading a script and calls from a blocked number?

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 

If you had told me you didn't believe that a boiler room could exist and prosper "in this day and age" (whaever the fuck that means) I would have called you all kinds of offensive shit. If the SEC can't catch a man stealing billions from some of the wealthiest people on the planet, they are sure as hell aren't going to catch some guido calling Joe Sixpack to rip him off for $25k. They are as old as wall street and will continue to operate.

 

Well said, and pointed out. The reality is this goes on and you as a consumer(investor) have to be knowledgeable enough to know that your getting "bambuzeld". Whats the difference between being a used car sales man and selling crap cars for an overvalued price or as a contractor who gives out estimates to ill informed home owners. If you ask me, you as consumer should have a level of responsibility to be able to distinguish between a good investment/buy versus a poor one. Needless to say there should be some government regulation as to what corporations should disclose and operate within.

- Only time will tell....
 

I worked at Chicago Investment Group for 3 weeks in my sophomore year. Total chop shop. They had two guys on that show Wall Street Warriors pitching sandisk, which dropped about 60% from when they were selling it. Also Chesapeake Energy, which dropped somewhere around 80% I believe. I think it was probably illegal for a 19 year old to cold call people, but they had about 20 interns. What a shit show.

And Gold Man Sack, don't be a pussy, name the company you worked for.

 
[Comment removed by mod team]
 
whateverittakes:
furiousgeorge86:
I worked at Chicago Investment Group for 3 weeks in my sophomore year. Total chop shop. They had two guys on that show Wall Street Warriors pitching sandisk, which dropped about 60% from when they were selling it.
"These leads are all wood!" -- Big, Stupid Texan Broker

I guess he was all hat and no cattle.

Wall Street leaders now understand that they made a mistake, one born of their innocent and trusting nature. They trusted ordinary Americans to behave more responsibly than they themselves ever would, and these ordinary Americans betrayed their trust.
 
Gold Man Sack:
I would encourage everyone to name specific names of places you know that operate in this manner;

Care to lead by example? I didn't notice any names being named in your post. It's pretty despicable what these guys do but a fool and his money are soon parted one way or another.

 

I forgot the part about him telling me he has been licensed for 3 years and before national he worked at a hedgefund in california..... and he sounded like he was 16 lol

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 
ThaVanBurenBoyz:
About what I expected, haha. Man, you were pretty polite compared to what I would have done. Way to con him into a long convo though, that's hilarious.

"EBIwhaaaat?" ::facepalm::

I'm closing down the business thanks to the economy and back in school, I still use the name for weekend work and stuff.

I just had to do it, anyone ever call again I will record the call and if I get the opportunity I'll post it on here.

@ Uncle Eddie: thanks for replying to my pm.... ,' 0 /

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 

Allow me to lay the proper pitch intro on you...

"Hey Jim? Hi, John calling from So & So Financial Group, I'm hoping my voice still sounds somewhat familiar? (obviously not..) last time we spoke I asked you to jot down the ticker symbol BSFU, I'm hoping you got a chance to check it out... It's up a billion percent since we last spoke. But I'm not calling today to pour salt in an open wound, I'm calling because my analyst has identified a situation with even greater up side potential: the stock is FUBS, and what's exciting about this stock right now is...." this is where half truths, gross exaggerations, unfounded "rumors" and glaring omissions come in.

 
IronkidMS:
Question for OP - so after working at a "Firm" like the one you mentioned, how did you manage to get the next job? I'm sure it stays on your U4 and can't look too good to future employers??

I didn't stick around long enough to get my U4 marked, otherwise i imagine there would be almost no chance of getting a decent job in the industry after. In my case i was lucky enough to meet some very nice people from a reputable firm who appreciated my lack of enthusiasm for the old job and helped me get hired at their place. If you want to tell me some specifics about your situation I may have some advice for you, feel free to pm me.

 

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