Clifton Consulting Group LLC (2021-04-27)

Summary

This is a public warning notice issued by the Guernsey Financial Services Commission alerting the public to an unsolicited approach made to a Guernsey resident by Clifton Consulting Group LLC, a firm claiming to be based in New York and offering to buy shares at above-market prices. The Commission identifies this as a suspected investment fraud (a 'boiler room' style share buy-back scam) and confirms the firm is not licensed in the Bailiwick of Guernsey to conduct investment business.

• Nature of approach: Representatives offered to buy shares held by a Guernsey resident at a price far above market value, requested completion of a confidential non disclosure memorandum, and asked for payment towards a bond, with funds directed to a bank account in Indonesia.
• Outcome: The approach was recognised as an attempted fraud and no losses were incurred in this instance.
• Legal basis: Promoting a controlled investment in the Bailiwick constitutes a restricted activity under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended; Clifton Consulting Group LLC is not licensed to carry out such activity.
• Public advice: Bailiwick residents are urged to exercise extreme caution with unsolicited cold-calls offering financial services and to deal only with properly licensed businesses.

Applies to

consumers, Bailiwick of Guernsey residents