A father and daughter showed "callous disregard" for the British victims of their $70m (£34m) share scam, US investigators say.
The pair will appear in a Florida court later after they were arrested on charges 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.
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" The most harrowing part of the investigation is the countless tales of woe from victims and their families "
Peter Wishart,
City of London Police
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"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 Peter 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."
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BBC helps find out how a boiler room scam worksQ&A: Boiler room scams
Would-be investors are under continual threat from fraudsters who run so-called "boiler rooms". BBC News explains what they are and how to avoid being conned.
So what is a boiler room exactly?
Typically it involves a few people sitting in an office, often somewhere abroad, who call you on the phone and try to persuade you to buy shares in a company. A Hollywood firm called Boiler Room was released in 2000 featuring just such an operation.
What is wrong with them?
Just about everything. They are not authorised by the Financial Services Authority (FSA) or other national regulators to sell shares or give investment advice. The shares they sell may not exist or else eventually turn out to be worthless. And they use high pressure sales techniques to get their victims to part with their money. They are a complete fraud.
Are there many of them around?
You will not find them under "B" in the Yellow Pages. But the FSA knows of many targeting UK investors. They operate from places like Spain, the USA, Switzerland, Eastern Europe and even Japan. With a large and wealthy population and well-established culture of share ownership, the fraudsters clearly think that people in the UK are an ideal target. And the tough British laws about share dealing make them reluctant to chance their luck within the UK.
Hang on, people cannot be that gullible, surely?
Oh yes they can. In June 2006 the FSA surveyed people who called it for advice on boiler rooms. The authorities discovered that victims were losing on average £20,000 each to the con men. Most of the victims were men, over 50 and living in London and the South East. Intriguingly, a majority claimed to be experienced investors.
So how do the conmen do it?
Sheer persistence and a persuasive line in patter appear to be the key ingredients. Many of the victims contacted by the FSA said they had been subjected to repeated calls from the boiler rooms until they gave in and finally agreed to hand over their money. Persistence does pay off if you are a fraudster.
Why do the authorities not close down the boiler rooms?
The conmen usually operate abroad where the FSA simply has no powers. If they do operate in the UK though they can be prosecuted if caught. Two men were arrested in the UK in November 2007 because of their suspected involvement in a boiler room.
What should I do if someone calls me offering cheap share investments?
Do not believe a word of it. Just put the phone down and then give the FSA a call at its contact centre on 0845 606 1234. The authorities are always keen to know of the latest scams.
Copyright BBC MMVIII
