Organetix OTC share scam on UK investors

With apologies to the automation readers, this is a different style of post!

Way back in 2004, for some reason, I bought a quantity of 3000 Regulation S shares in Organetix Inc, a US start-up company. Not a good idea, they failed pretty quickly. But in 2006 I was approached by Link Mergers and Acquisitions LLC, an apparently reputable US legal company, who wanted to acquire these shares for an asset stripper, who would then close it down. The offer was for around $9.90 per share, a great deal more than I paid, but the very friendly guy said that I actually owned 12000 shares according to their register of shareholders. I was sent a legal agreement to sign and send back urgently, agreeing to sell them 12,000 shares. Dangling a possible return value of around $110,000!

They could sort out the problems of the Regulation S stamp on the back for me, very simply, for an up front fee of only $9500, refundable on completion of the deal. If I had paid up front, the deal would have failed, because I did not own 12000 shares. So I would have forfeited the $9500. I did not go there.

Fast forward to 2012, Halloween, today: we now find another apparently reputable legal guy with a US accent, but he says he is from a Japanese based company, called Reynolds Merger Solutions – but the timing of his calls does not fit. He was into November. He has the same story, but now the purchase price on offer is $9.75 each, for the 12000 shares, which he knows from his share list I own, and the agreement includes a fee up front for them much reduced, now only $6120.

So at least there is a positive side, the up-front money that I would pay him and then lose has gone down compared to six years ago.

I guess this only works with UK investors into US companies, who can be taken in by such scams, but don’t go there, just write the investment off! You could frame the share certificate, it’s quite pretty, and when you look at it, think about the money you did not waste on the follow-up scam!

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One Response

  1. I did the same stupid thing and avoided the same follow up.
    Had forgotten all about it until now. Do you know, are the shares absolutley worthless or pretty worthless?

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