Bailey & Bennett

Bailey & Bennett, a firm claiming to be working out of New York, are approaching victims of boiler room scams with an offer to buy up some of the dead stock. The stocks involved so far have been Stem Genetics and DFRC, both of which have been the subject of SEC investigations into stock fraud.

Stem Genetics and DFRC are discussed at length at http://www.boiler-rooms.co.uk, but both were sold fraudulently by boiler rooms, at the cost of millions of pounds to defrauded investors in the UK alone. Questions should be asked as to why Bailey & Bennett should want to get involved with such worthless equities.

The deal being discussed may vary a little, but Bailey & Bennett appear to be favouring the story that this is a buyer (an Asian buyer possibly), attempting a take over of DFRC. At the last count, the buyer had acquired around 49% of the shares in DFRC (or possibly Stem Genetics), and are willing to pay a heavy premium to get 51%. Bailey and Bennett are offering $3.25 per share for worthless shares. What is likely to happen is that a fee needs to be paid in advance before the funds are released. The likelihood is that the funds never will be released of course. It has all of the hallmarks of a secondary scam, so care and due diligence should be performed.

There are claims of authenticity via sites in the US, which on the face look genuine, but which are, in all likelihood, fake in themselves. It has been know for boiler rooms to try and gain credibility by aligning themselves with sites that look like Government sites, or religious sites aligned to Churches, when the sites themselves had been created by the fraudsters. You should always treat such claims with sceptiscm.

Interestingly enough, the IP addresses used for this firm are exactly the same as some other boiler rooms that have operated in recent months. The copyright notice on their website claims to be from 1996, but the site was only created in November 2004, just a couple of months before these waves of cold calls started.

You can read an ongoing discussion on Bailey & Bennett at the boilerrooms forum. You will have to register to participate, but there is a healthy debate on this and other matters.

More information will be posted on this sites as it becomes available, but in the meantime, you are encouraged to exercise caution when dealing with any firm dealing in stock that has no perceivable value, but also in those that cold call. This is illegal in the UK.

Bailey & Bennett have hit rock bottom, even for boiler rooms standards. They have used the names of victims of the 911 atrocity as the fictitious names for their fraudulent business. These people are crooks, and prey on innocent people all around the world. They have now found a new low, even for crooks. For more on this story, please refer to this boiler room's story.