Three men have been arrested on suspicion of selling phoney wine investment opportunities out of Fleet Street.
The suspected boiler room scam extended to two additional addresses in Southwark and Lewisham, with the bust taking place after 39 reports were made to Action Fraud.
Having cold called their victims, the scammers claimed that targets would realise a 40% return on their investment.
And in order to extract even more cash, victims were told that a third party was waiting in the wings to immediately purchase the stock, but that to make it more attractive investors would need to buy more wine first.
Bottles never exchanged hands, with the fake company ‘holding on to stock’ on behalf of investors.
It is estimated that losses total more than £1million.
“Boiler rooms continue to be a major threat to individuals in this country and statistics show that those who are over 60 are particularly vulnerable to this type of crime,” said City of London Police Detective Inspector Andrew Thompson.
“Fraudsters will do everything they can to manipulate potential victims and convince them that they are making genuine investments.
“I would urge anyone who is cold called and offered investment opportunities to put the phone down and always do your research before making financial decisions.”