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  1. #1

    Foerster Consultants Trade scam

    Initial contact was in Feb/Mar via a very polite Chinese lady. She stated that she was ringing to see if I was interested in receiving a copy of their literature. I asked how she got my number but was told that she was simply given contact number by her superiors. One of whom would be ringing to ensure that she had done her job correctly and that I had received the information.
    A Chris Page (Senior Advisor) contacted me to see if I was happy with the literature, which I said had not arrived. He promised to chase this up. The original literature arrived the next day and a repeat delivery was also received.
    On March the 21st Chris Page followed this up with an account application form and a W8 BEN form which was stated to be very important in order to be compliant with the US tax regulations. These forms where subsequently completed and returned. (Maybe we should say here that the forms are quite comprehensive as any form of this nature would be, the down side being that this form contains a lot of information, such as passport details, which is now in the hands of scammers). Also provided was the Trade confirmation for the first trade we did, which was for the sum of $39,505.75 for shares in a company called Sun Core Energy (SU). This was a medium value share ($28.14) and the company was meant to closing a large contract which would push the price up providing us with a 10% growth. This all seemed very reasonable, the share price quoted was correct when checked against the stock exchange, the growth seemed good but not excessive and indeed when we later sold the shares to transfer the funds into another (scam) deal we made $3.26 per share which is slightly better than 11% profit.
    During the above process a man called Paul Godfrey (Allocations Officer) contact me to ensure that all paperwork was in place and confirming that all was in order. We had some problems with the initial transfer at the clearing banks and Paulís emails were courteous and even jovial as we both worked to solve the issue. (We could mention here how does a scam company get a bank account and how does a scam company not get picked up by the clearing banks. According to my bank the problem was that the funds were held in transit until the US authorities were happy that this was not a money laundering activity. The controls are obviously crap). The fact that a Shanghai based company was using a Rumanian bank should have ringed bigger alarm bells than it did with me, but it did not! I did ask Paul about this and was given a very plausible and well-structured argument that as they trade on the US and Canadian markets they want security of banking and they never know what is happening in China, whilst Rumania was within the EU and gave them the level of banking security they needed.
    On the 9th April we managed to complete the first deal and I was sent a receipt for the money and very nice email form Paul formally welcoming me to the company and adding the personal touch of thanking me for placing my trust in them bla bla bla.
    It was about mid-April that Gary Cohen (Senior vice president trading) came into the picture and became my investment manager. Gary basically followed up on Paul and provided me with his private contact details.
    On the 24th April I then received a call from a John Moore (Director of Institutional Trading). John explained that he had a good deal going down with NetFlix (NFIX) a blue chip company we have all heard of. He convinced me that this was a quick in and out buy and would again net me about 10%. He supported his argument with several web links each seemed to confirm what he was saying was correct. Here again the share price was correct and nothing looked odd, except that the bank account number was different even though the bank was the same. I questioned this and was informed that as he traded institutionally the accounts were separate to the public share (How does a scam company get more than one bank account, the controls they have are obviously none existent). I agreed to buy 100 shares at $200 per share and duly transferred $20,200 dollars.
    On the 30th April John rang whilst I was driving a large truck to Holland and so I was unable to take any action. All Johns calls were open, jolly and very friendly, talking about his family, his son in University, his wife, his cars etc. etc.. This exuberant friendliness I put down to them being American but on reflection it was maybe too much. The call was basically to say that he had a chance to get another slice of the Netflix pie and suggested that I take advantage of this situation, but as I was driving I simply was not able to react to the Trade Confirmation he sent me. Now looking back it was here that the Trade Confirmation details changed, previously they had simply been a quantity x price + commission calculation. Here for the first time it showed that I was actually only buying 10% but was actually signing for the full amount, but as I was driving I never saw this until I sat down to write this statement.
    On May the 8th John rang and said that he had a great deal going down, in that as he traded institutional shares they (Foerster) had the opportunity to sell a number of stock blocks to their clients. He convinced me that this was a simply buy and sell deal that would net us close to 25%. The shares were in Apple (APPL) and all he needed was 10% of the price, around $70,000 and the rest would be covered by his company. That is I would buy 2000 shares at $350 per share and his company would stand for the rest on a deal worth $707,000. I like a ****ing prick swallowed this; although in my defense it was a well-crafted and well-rehearsed delivery. He sent me a Trade Confirmation which I signed and returned promptly. I managed to send only a portion of the cash as miscalculation on my part as to the amount of money I had available meant that I was not able to complete the trade within the allotted time frame. Now I was on the hook, I owed them cash, they could take me to the cleaners etc. was basically the content of the plethora of subsequent phone calls.
    I had visions of losing house and home and it was at this point Gary that came riding back into the fray like a knight in shining armour and offered me a way out of owing $707,000. His tone was different, we (Foerster) donít want to destroy people, we can do some creative financial foot work etc. etc. He came up with an IPO (Initial Purchase Offer) deal with a company that would trade as PSST, he transferred all the stock I had in SU and NFLEX plus the $12,858.00 I had managed to pay into the Apple deal. It was at this point I learnt that my fictitious NFLIX and SU shares had made the numbers quoted above that is approx. 10%. Initially Gary sent me a Trade Confirmation to buy a block of 25,000 shares at $40/share. This trade was then worth some $931,504.64 which was a bigger hole than I was already in with the Apple deal, so I refused to sign. Gary then started a whole range of phone calls all sympathetic and each leading a step closure to the light. Eventually he said that he had found a loop hole and could have me approved as a Private Investor but that I would have to buy at least 4000 shares. Equally as the stock was not going to market until August then I had time to find the money. This indeed felt like a way out and I jumped at the deal and subsequently sent the money in a couple of installments. During this period Gary came back and said that his company financial control department had objected to the 4000 share purchase and that in order to become a Private Investor and get out of this problem I would need to buy 5000 shares. Yet again I had time, so having stripped all our bank accounts and savings to make the previous payments I was now forced to take money saved to pay taxes and to borrow all that I was able from my pension Trust in order to cover the additional amount. The relief felt when I managed to meet this last payment was fantastic, I was clear of the mess I had got myself into and I had a solid investment which would mature at the end of August giving back the funds needed for me to rebuild my tax debt and Trust funds, or so I thought Ė the elation was very short lived.
    As the end of August approached I was contacted again by Gary saying that there was a problem. The story line was again crafted and backed by all sorts of plausible statements taken from what is happening in the world. The bottom line was that my account had been flagged, and that the reason was because the % of shares purchase from the block was insufficient. They were initially looking for a 100% increase in my stock holding to make the problem go away, that is buy a further 5000 shares. As I already had $202,000 invested and was basically broke I had absolutely no possibility to react to this. Gary, supportive as ever promised to take my situation back to his superiors and duly retuned with a revised figure of 2500 shares, i.e. a further $101,000. If I failed to do this then my account would be blocked meaning that the shares could not be sold for 3 years. At this point I wrote to Gary requesting my shares.
    It was also at this point that we found Foester as one of the flagged scam companies, and had to take on board that I had not only lost all the money invested, I had put myself and my family through economic turmoil for months trying to meet the various payment demands, I had lost my tax money, I had lost my pension Trust, I had lost my wifeís pension Trust, I have lost my belief in my own judgment but worse than all of the above put together I have lost my wifeís faith in me. I am fortunate that I can rebuild our financial position and a few months from now things will be back on track. The money I have lost has gone forever but if one person is saved the pain these people have caused my wife and myself by reading this then I consider it money well spent.

  2. #2
    Join Date
    Nov 2010
    Posts
    33

    Re: Foerster Consultants Trade scam

    You have described a typical Boiler Room Scam Operation.
    Did you transfer funds to Raiffeisen Bank in Bucharest ?
    If so, send me a PM
    Jack

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