Global Strategic Management scam from Hong Kong

February 27th, 2013 7 comments

Somehow, I have gotten on to the list of potential suckers to be scammed by fraudulent investment firms based in Hong Kong. I have now received offers from a few of these companies, the latest from Global Strategic Management. It usually starts with a friendly phone call from an offshore investment firm that can guarantee large (40%+) gains that are tax free. Their pitch is that since I am not an American citizen, and they are investing from Hong Kong in the US market, I would not have to pay taxes. He also claimed to have inside information about the companies they pitch to invest in.

This latest pitch from Global Strategic Management would like me to believe that Cirrus Logic (NASDAQ:CRUS) just finalized a new deal with Apple that will cause their share price to rise over the next 120 days. They also want me to believe that this would be a legal way to make a profit tax free. When asked why I would trust a random stranger that calls me up enough to invest with him $10,000, he pointed me to his ‘company’s’ website After looking up info on their domain, I asked him why his server was sitting in Panama. He told me that the in today’s internet age it doesn’t matter where their servers are. I told him that a reputable company would want to make sure that their servers were in a secure data center with as close to 100% up-time as possible. Somewhere in Panama sounds like a bad choice. What proved to me that this company was a sham was looking up their website on the internet archive (he told me they have been around with the same web address since ’95) – not according to the internet archive (wayback machine)

Please, if you are tempted to invest in a HK firm, just don’t do it.

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