Police have arrested five men in relation to a boiler room operation run by the self-proclaimed (and misspelt) 'Wolfs of Liverpool Street'.
The group set themselves up in offices around the Square Mile, from where they are believed to have cold-called people across the country, with a particular focus on vulnerable victims, selling overvalued commodities and misrepresenting their future potential.
The five were arrested on suspicion of conspiracy to commit fraud by false representation and money laundering. They were held at a City of London Police station for interview as the investigation continues.
Action Fraud reports reveal that a number of investors may already have lost tens of thousands of pounds through the racket.
The arrests were part of the City of London Police's 'Operation Broadway' crackdown on boiler room fraud.
Detective chief inspector David Manley said in a statement: 'In recent months we are finding evidence of boiler rooms creeping back into the City. This could be partly a result of the success we’ve had in shutting down these types of operations overseas and partly down to the fact that having a fancy office in the Square Mile makes it easier for the gangs to recruit.
'Whatever the reason the City of London Police will not tolerate their existence and is committed to acting quickly to limit the harm they can cause to investors, especially the elderly and vulnerable, living across the UK.'