MIL-OSI Translation: EJ Investment: Illegal offer of pre-IPO shares of “Porsche AG”


MIL OSI translation. Region: Germany/Germany –

Source: Federal Financial Supervisory Authority

EJ Investment, allegedly based at Untere Hauptstraße 7, 85354 Freising, as well as Zurich (Switzerland) and Brussels (Belgium), makes unsolicited telephone contact with consumers in order to offer them alleged pre-IPO shares in “Porsche AG”. In the further course of the business initiation, interested parties receive e-mails that allegedly come from “Porsche AG”. These claim that not all employees “at Porsche” know that the shares are already being sold. This is not the case. Both the Volkswagen AG as well as the BaFin point out that pre-IPO purchase offers for these shares are unlawful and do not originate from Volkswagen AG or any of its subsidiaries.

The claim on the website that it is licensed as an asset manager by the Swiss Financial Market Supervisory Authority (FINMA) is also incorrect.

Recently there have been increasing reports of fraud attempts in which shares in well-known companies are offered for subscription. However, these shares are not delivered after payment by the buyers and the providers can no longer be reached.

Companies that offer consumers shares in other companies for sale require permission from BaFin to do so. This also applies to pre-IPO shares. Information on whether a particular company has such permission can be found in the company database.

According to Section 37 (4) of the German Banking Act (KWG), BaFin clarifies that EJ Investment does not have a license to conduct banking transactions or provide financial services.

The securities prospectus required for a public offering is also not available for the shares mentioned. You can find out in the database whether an approved prospectus has been filed with BaFin for a public offering of securities Deposited prospectuses check over.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

MIL Translation OSI