Warning on Scams

The intermediary asks for up-front fees (in a real situation no one will ask for up-front fees to the client).

  • You are asked to transfer the money into an escrow account not in full control of the client.
  • The internet is now full of different money-making opportunities that promise to return a high yield on the small client’s money. In most cases such programs are Ponzi schemes (pyramid schemes).
  • First there is the problem with pooling a €100M minimum. In many countries, it is illegal to pool money with promises of a high return. Factor in the problems with high numbers of participants being managed, the trust factor, and clearance issues, trading may never begin.
  • However, the main scams are usually made or attempted with small clients that never will qualify as PPP clients. Usually, it is very rare that an honest client with €100M can fall into this kind of trap. Larger clients are investment savvy and can utilize the knowledge of other financial experts to drive the deal on a “safety road”.
  • The scam, fraud reports in question could have been written by the SEC, FBI, ICC or any other regulatory authority. You should be aware that official documents like the “Commercial Crime Services’ Special Report on Prime Bank Instruments Frauds” by the ICC Commercial Crime Bureau are widely spread and used as a reference by banks, accountant firms, lawyers, SEC, FBI, ICC and other authorities around the world.

Lawyers for Advice and Guidance

It is the writer’s opinion that lawyers and accountants are engaged to serve as people who execute agreements or financial reports between the principals in support of the client’s business decision made between two parties. In most general cases, their advice is solicited; however, it is rare to find an attorney who is intimately familiar with Private Placement Programs. As a result, almost always, the client is poorly advised by practicing attorneys who are not sufficiently educated in this arena.

Clients Failure

  • They don’t have enough money or workable assets.
  • They don’t have the money in an acceptable bank.
  • They don’t have full control of the money (or of the bank instruments).
  • They don’t have a good explanation of the origin of the money.
  • They do not follow the required procedure.
  • They do not collaborate enough with the Trading Group.
  • They delay the delivery of documents or send fake or non-confirmed documents.
  • Their identity cannot be confirmed.
  • They are blacklisted or under investigation

How Banks and Brokers can Profit

Banks are not allowed to act as clients in such programs. However, they are able to profit indirectly in different ways. This fact permits some private brokers, trading groups, and clients to take part in this process that otherwise would be a banking matter only. The assets coming from private clients are necessary to start the process. These private, large funds are the mandatory requirement for the buy/sell transactions of banking debt instruments. Brokers are necessary to introduce the clients to the trading groups. Thus, each of the involved parties takes their part in the sharing of the benefits, commissions for banks and brokers and proceeds for trading groups and clients).