How boiler room scams work

The pair were arrested in Florida and have been charged with multiple counts of fraud and money laundering.

Paul Gunter, 58, and daughter Zibiah, 25, from Florida, are accused of selling worthless shares to 15,000 mostly elderly British citizens.

If found guilty, they could face up to 25 years in prison and a large fine.

Investigators allege the pair sold fake shares in 50 dormant firms since 2005 in what is known as a boiler room fraud scam.

The most harrowing part of the investigation is the countless tales of woe from victims and their families Robert Wishart, City of London Police Fraud scam victims speak out

"These two criminals demonstrated a callous disregard for the hard earned money of individuals who thought that they were legitimately investing in their futures," said Robert Weber, head of the investigation for the US Immigration and Customs Enforcement (ICE) agency.

"ICE will continue working with its law enforcement partners here and abroad to hold criminals involved in stock fraud accountable for their actions," he added.

Fake company

Scott Broom, 52, from Glasgow was one victim, investing �27,000 in a company called Transglobal Oil Corporation after being contacted by telephone in July 2006.

He told the BBC that he was alerted to the possibility that it was a fraud after receiving a number of other similar share-selling calls shortly after.

But by then he had already wired the money to a Bank of America account.

"I was told the money was being held by Paul Gunter, who claimed to be an escrow agent - an independent intermediary between the investor and the company - but he refused to return my money."

He believed the operation was based in Spain.

UK investigators and the Financial Services Authority (FSA) have been working with authorities abroad to root out these illegal operations.

Widespread

Deputy chief inspector Robert Wishart, head of the money laundering unit at City of London Police, told the BBC that in this case more than 15,000 Britons were affected, with one victim losing in excess of �1m.

But he suggested that many other British citizens could be victims of similar scams, in some cases losing their life savings.

"The most harrowing part of the investigation is the countless tales of woe from victims and their families," he said.

Mr Wishart remained hopeful of recovering at least some of the money to unwitting investors.

Boiler rooms are defined as illegal share selling operations using unregulated shares.

They often operate abroad, making it difficult for national regulators such as the UK's Financial Services Watchdog (FSA) to control them.

The shares which they sell are generally "overpriced, restricted for onward sale and have little or no realisable value."