CIFAS calls for increase in sentences for boiler room fraudsters

CIFAS – the UK’s Fraud Prevention Service is calling for a review of the sentences handed down to those convicted of boiler room scams, in light of the recent announcement of the latest sentencing guidelines for burglary.

Boiler Rooms are bogus stock-broking companies, often based overseas, which cold-call investors and pressure them into buying worthless, non-existent, shares. In the current economic climate, boiler rooms have started to target victims who have redundancy money or those who are not experienced investors, and are asking for smaller sums of money to invest. They also prey upon often elderly victims, and use high-pressure, harassment to fleece victims of their life savings. Some victims have even lost their homes.

The biggest individual loss to date recorded by the National Fraud Intelligence Bureau (NFIB) is £1.2 million.

CIFAS Chief Executive, Peter Hurst, comments that: “While violent or aggravated burglary and boiler room scams are completely different crimes, the impact on both types of victim can be equally devastating.

“It is quite right for violent burglaries to have sentences of up to 13 years, as outlined in the latest sentencing guidelines – but the highest sentence for boiler room fraudsters currently lies at only 8 years.

“Boiler rooms are known to target thousands of victims and con people out of millions of pounds. They also treat their victims with utter contempt; deliberately targeting the elderly or vulnerable – running off with redundancy settlements or a lifetime’s savings for their own criminal ends, while leaving the victims despondent, depressed and helpless.

“Victims of violent burglary deserve better treatment and support, and the revised sentencing guidelines are a first tentative step to try and ensure this. However, the insidious and devious world of the boiler room fraudster must also be targeted and it is time also to review the sentences handed to these criminals to ensure that the victims of boiler rooms also receive some justice.”

Notes to Editors:

1.      CIFAS is the UK's Fraud Prevention Service, a not for profit Membership organisation with over 250 cross sector Members including banking, credit cards, asset finance, retail credit, mail order, insurance and telecommunications with a number of public sector bodies preparing to join.  Members lawfully share information on frauds in the fight to prevent further fraud. 

2.      Victims central to new guideline for the sentencing of burglars (Sentencing Council – 13 October 2011)

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