Investors are warned to be on the lookout for a highly organised gang that is luring unsuspecting punters with promises of substantial returns from United States stocks.
The con-men are clearly professionals and are systematically working their way through the phone book in search of gullible targets.
Which could explain how they managed to get through to Paul Bailey, executive director of enforcement at the Securities and Futures Commission.
One Robert Tankai, representing Kearns Investments, contacted Mr Bailey last week and asked if he was interested in investing in US stocks, Business Post reported on Friday.
A couple of days later, Mr Bailey - who knows a little bit about the illegal touting of shares - was called by Maxwell Kane, a senior consultant with the Japan-based company.
Mr Kane identified a company with shares quoted on the Nasdaq over-the-counter market and said he had some inside information that the company - which is in the fire-resistant building materials business - was about to win a contract to rebuild the area around the World Trade Centre.
