The order was made against the company as a result of a winding-up petition presented by the Financial Services Authority (FSA); Inertia was found to have arranged at least GBP1 million worth of investment deals without authorisation under the Financial Services & Markets Act 2000.

The Judge, Jonathan Crow QC, observed that Inertia had played a significant role in the operations of these boiler rooms, and its participation was calculated to provide comfort and reassurance to consumers.

He found that consumers were charged 'exorbitant' commissions - up to 200% of the actual price received by the share issuing company.

The FSA investigation found that investors were cold-called by boiler rooms, including Integra Advisory Group, AIM Management and Standford Long, who misled investors. Inertia acted as an 'escrow' agent and made arrangements for the purchase of shares in a number of UK companies.

Investigations also revealed that Inertia had dealings with Porterland Associates, based in the Seychelles, which is not authorised by the FSA and is believed to be involved in boiler room activity.

Jonathan Phelan, head of retail enforcement at the FSA, explained that:

"Investors were encouraged to take comfort in the fact that Inertia was based in the UK so their investment was supposedly safe, when in fact it was transferring substantial sums of investors' money to an unauthorised overseas organisation. Because Inertia was not authorised, investors do not have protection for the money they have paid over, such as access to the Financial Services Compensation Scheme or the Financial Ombudsman Service."

"Investors should always be cautious when they are cold called by any firm promoting or offering to sell shares and should first check to ensure that the firm is authorised by the FSA."

He concluded:

"UK companies who are seeking to raise finance for their business should also be aware of the dangers of dealing with unauthorised firms and individuals. Even where UK companies do not realise they have become involved with boiler rooms, they are likely to suffer adverse consequences to their business if the FSA has to intervene in order to protect investors."