Buckeye Facilitation Inc - Beware

C

c00lcarl

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Just a warning about what may be a scam - I have recently been contacted a number of times by phone by a person claiming to be called Thomas Schwartz who says he works for Fidelity Investments the sales pitch goes like this:

Thomas offers to facilitate a purchase of shares on my behalf by reserving the shares at their current price, then if the shares go up you can go ahead with the purchase or pull out of the sale. If you agree to reserve the shares a "compliance officer" then gives you a call to confirm your address and the share deal details. You then receive some documentation from a company called Buckeye Facilitation Inc (no mention of Fidelity on the paperwork) with a purchase contract and a request to wire funds for the purchase of the shares. The small print of the contract states that the purchase is governed by the laws of the British Virgin Islands with exclusive jurisdiction of this territory - I have tried to locate "Buckeye Facilities Inc" on google but there is no data whatsoever for this firm, all the contact numbers that these persons use are private numbers and the whole thing stinks of a scam, I'm fairly sure that if I wired the money I would either never see it again or else I am being sold worthless shares.

I have contacted Fidelity Investments to see if they have ever heard of Thomas Schwartz or Buckeye and I'll let you know their response in my next posting, in the meantime I would recommend anyone who is contacted by Mr Swartz or anyone offering a similar service to do a bit of research before parting with any money.
 
Carl

You should also report them to the Financial Regulator who will put an ad in the paper warning people about this. It is illegal for them to sell shares in Ireland unless they are authorised.

Brendan
 
It sounds like that they have even spelt their own name wrong. Should Buckeye not start with an 'F'.
It the OP doesn't pick this up, surely there must be some other person that has been called who may be able to five the regulator more details and to put a halt and at the very least make the public aware of this kind of irregular selling.
 
FYI

Fidelity Investments have got back to me and state that this individual does not work for or represent them and to ignore any correspondence received from him or his associates. Fidelity say they are aware that this is going on and are in contact with the "proper authorities to put a stop to it"

So this would definitely appear to be a scam.
 
I was also approached by someone from Fidelity. The person making the calls from Fidelity is an obvious fraud. Many "offshore" trading houses will use names that are similar to reputable houses. Now, the company Buckeye Facilitation is properly registered in America in the State of Ohio and banks with a reputable national bank so I doubt the company is a scam, i.e., you send your money and it disappears. Apparently, under American securities law it is legal to sell shares privately and not through an exchange per se. Many small publicly traded companies do this to raise capital. They would sell their shares directly to the public and these shares are deemed restricted from trade for a certain period of time. They appoint a receiver of funds which I would assume is this Buckeye group. Apparently, the authorities in Britain, Ireland and other European jurisditions can't regulate such activity and therefore do anything and everything to stop it as this would be a breeding ground for scams.
 
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