Boiler Room

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What does Boiler Room mean in American Law?

The definition of Boiler Room in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

Common slang in the securities industry for an operation in which securities of doubtful value are sold over the telephone to targets on a mark list by a crew of dangerously persuasive high-powered salesmen, all gathered in a room with many telephones and no other assets or accoutrements. Cf. bucket shop.

The term may also be used to describe telephonic money-raising efforts by “charitable” organizations of doubtful benevolence.