Police have launched an investigation into a suspected multi-million-dollar stock-trading scam amid mounting fears that criminals are exploiting a loophole in the law.
The Commercial Crime Bureau is investigating Berkeley Samson International (BSI) after evidence emerged that it has been defrauding foreign customers.
But the Sunday Morning Post has uncovered evidence that BSI and other apparent 'boiler room' operations are apparently able to flout the law by using virtual offices - provided by reputable international companies.
BSI listed its address as at the prestigious Pacific Place, in Admiralty, while it allegedly was fleecing customers using cold-calling and hard-sell techniques. This address was actually a virtual office, where calls, mail and electronic information was forwarded to its operation centre in Bangkok.
In conjunction with police in Hong Kong, Thai authorities are now investigating the company - which used a Standard Chartered Bank account - after receiving complaints about its operation.
But a Securities and Futures Commission source said: 'These offices are run by secretarial companies. We can warn them but they don't have to do anything. Effectively our hands are tied. There is very little we can do.'