Restriction on shares, rule 144

Secondary Scams

The Financial Crime Unit has had experience in dealing with local victims who have bought overpriced, restricted for onward sale and have little or no realisable value. Having been the victim of an initial scam it is not uncommon for the same victim to receive further cold telephone calls some months later from a different person who may offer to take the worthless shares initially purchased, provided you pay more money for some other shares. Similar advice applies in these circumstances, don't do it. This is known as a secondary scam. The perpetrator of the original scam is likely to have sold your contact details to other person(s).
Restricted stock (Rule 144)

US firms are able to sell stocks overseas that are restricted or controlled for sale in the US because they do not meet stock listings standards. Usually you cannot sell these shares back to the US for at least a year, and even then you must pay a U.S. lawyer or broker to remove the marked legal restriction from the share certificate, before selling is possible. This could cost more than your shares are actually worth. People who have bought restricted shares through boiler rooms are frequently targeted by the secondary scammers as they are naturally anxious to recover some of their initial loss. Cold callers may contact you with an offer to get the restriction removed, only to disappear once you’ve handed over your money.[broken link removed]
Further information about Restricted stock originating in the U.S. can be found on the US Security and Exchange Commission [broken link removed]. Also, in addition to the resources offered by the Isle of Man Financial Supervision Commission and the FSA, the U.S. Financial Industry Regulatory Authority (FINRA) has a [broken link removed] to check the history of American brokers.

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