Private Placement Programs Scam or Re...

Since: Jul 11

Location hidden

#697 Oct 22, 2012
Christina wrote:
I came across this forum looking for information about the so called private placement program. I think a colleague of my father is being conned out of his money but I'm still trying to gather some proof.
The colleague was approached by some people who say they are brokers with direct contact to a trader. They then asked for his POF, copy of passport and one more document, I believe. A week later, they asked him to sign a JV agreement (this is where I learned of the term private placement program) and a Power of Attorney letter. Up to this point, no money has exchanged hands, but the more I'm digging into this , the more I'm feeling like this might be a con.
Does anyone have some insight on this?
Best regards,
Christina
Christina: "Charles" is indeed correct. I too would be concerned about signing a JVA and POA with a bunch of "email forwarders" who call themselves "Brokers". These people are like parasites, living off the financial fortune of others. Real trades consist of the following:(1) An entity with money plus (2) an entity with a knowledge and license to trade with the money belonging to others. Internet joker brokers do not trade. They simply forward emails to another party who everyone hopes this other party is the real thing. In most cases, 99.99% of the time, it is not.
Christina

Indonesia

#698 Oct 22, 2012
Thank you sulevss and Charles for your responses!

sulevss,
Yes, the JV and POA are definitely my biggest concern. I have read somewhere that stealing money with just those alone is possible, but I'm still not understanding how it works; do they forge his signature on documents, and such?

Charles,
Is requesting a POA a common practice in some programs? Because so far I've only found that the brokers would ask for an Authorization to Verify, but no mention of POAs, at least I think not this early in the process.
If I'm not mistaken this program's duration is 1 year+1 day.

Unfortunately, have I known what they were getting into from the beginning, I would've done all the research necessary - but at this point it's almost too late. The papers have been sent in, but from the broker's side, there's not even a progress report. Is this common?

If, the brokers really are trying to run a con - at this point, what, if any, can we do to stop things?

Thank you again!
Christina
Christina

Indonesia

#699 Oct 22, 2012
David Cheever wrote:
<quoted text>
Christina: "Charles" is indeed correct. I too would be concerned about signing a JVA and POA with a bunch of "email forwarders" who call themselves "Brokers". These people are like parasites, living off the financial fortune of others. Real trades consist of the following:(1) An entity with money plus (2) an entity with a knowledge and license to trade with the money belonging to others. Internet joker brokers do not trade. They simply forward emails to another party who everyone hopes this other party is the real thing. In most cases, 99.99% of the time, it is not.
David, thank you for your response!
Yes, the JVA and POA are big concerns - I guess the only thing that we're relieved about is the fact that no money has exchanged hands yet. But, I don't want to wait till that happens.
As I asked in the previous post, do you have any suggestions on what can be done at this point to stop things, and prevent any possible future damage?

Best,
Christina

Since: Jul 11

Location hidden

#700 Oct 22, 2012
Christina wrote:
<quoted text>
David, thank you for your response!
Yes, the JVA and POA are big concerns - I guess the only thing that we're relieved about is the fact that no money has exchanged hands yet. But, I don't want to wait till that happens.
As I asked in the previous post, do you have any suggestions on what can be done at this point to stop things, and prevent any possible future damage?
Best,
Christina
Suggestions:

1) Make sure you contact your bank and confirm NO funds can be moved without your own personal (read; be at the bank in person) authorization. No one can conduct the movement of your funds, except you.

2) No money is moved to the broker's bank account to pay for banking or attorney services. This is a very common tactic used by criminals. They will ask for fees to be paid, to allow the transaction to move forward. Escrow accounts is a term used by scammers where the escrow account belong to one of the thieves.

3) If possible, hire a private investigator to conduct due diligence on the brokers and alleged trading group. Professional investigators have the proper tools to conduct due diligence and they do not solely rely on "Google".

4) Last, but not least: Be careful whose advice you are following. Most people have no clue of what they are talking about. Excluding me :-)

Good luck.
CHARLES

London, UK

#701 Oct 22, 2012
Christina wrote:
Thank you sulevss and Charles for your responses!
sulevss,
Yes, the JV and POA are definitely my biggest concern. I have read somewhere that stealing money with just those alone is possible, but I'm still not understanding how it works; do they forge his signature on documents, and such?
Charles,
Is requesting a POA a common practice in some programs? Because so far I've only found that the brokers would ask for an Authorization to Verify, but no mention of POAs, at least I think not this early in the process.
If I'm not mistaken this program's duration is 1 year+1 day.
Unfortunately, have I known what they were getting into from the beginning, I would've done all the research necessary - but at this point it's almost too late. The papers have been sent in, but from the broker's side, there's not even a progress report. Is this common?
If, the brokers really are trying to run a con - at this point, what, if any, can we do to stop things?
Thank you again!
Christina
A typical procedure is:

You get the information which program (depending on funds) is available and the basic procedure an investor has to follow.

If you do not understand exactly the procedure please contact the people by phone (land line not mobile) who claim that they have the direct access and ask them to explain in detail. The real people do have good education and shall be able to answer most of your questions.

Now the investor must decide if he is ready, willing and able to follow. Up to now no confidential information needs to be exchanged.

If the client accepts and wants to proceed a proof of funds and a passport copy is required. Depending on the relationship a client has additional a client information sheet must be send.

If the client passes now due diligence he will receive the private placement contract with all details and on demand of the investor a meeting will be arranged where questions will be answered and additional information will be exchanged.

During the meeting or after the meeting the investor can freely decide if he wants to proceed.

If the client wants to go on he can sign the contract and has to follow the procedure as per contract.

I hope the information is helpful !

Since: Jul 11

Location hidden

#702 Oct 22, 2012
COMMENTS USING CAPS.

A typical procedure is:

You get the information which program (depending on funds) is available and the basic procedure an investor has to follow. AN EXPERIENCED "BIRD" (A QUALIFIED AGENT) WILL PRE-QUALIFY THE POTENTIAL CLIENT BEFORE AN INTRODUCTION IS MADE TO THE LICENSED TRADING DESK. A QUALIFIED AGENT WILL NEVER ADVERTISE ITS SERVICES IN THE INTERNET. THAT IS A BIG 'NO-NO'. THAT IS CONSIDERED "SOLICITATION" AND IT IS AGAINST THE LAW. AN INTERESTED CLIENT WILL BE INVITED TO PARTICIPATE VIA: PRIVATE BANKERS, CERTIFIED PUBLIC ACCOUNTANTS, LICENSED AND REGISTERED FINANCE ADVISOR, ETC.(NO INTERNET CONCRETE BROKERS).

If you do not understand exactly the procedure please contact the people by phone (land line not mobile) who claim that they have the direct access and ask them to explain in detail. The real people do have good education and shall be able to answer most of your questions. IF YOU DO NOT UNDERSTAND THE TRADING PROCEDURES, THAT MEANS; YOU ARE NOT AN EXPERIENCED INVESTOR AND THEREFORE, YOU DO NOT QUALIFY. THE TYPE OF TRANSACTION SUGGESTED BY MOST INTERNET BROKERS IS CONSIDERED "HIGH RISK" (REGARDLESS WHAT THE JOKER TELL YOU, IN REAL TRANSACTIONS THAT PAY HUGE PROFITS, IT INVOLVES HIGH RISK. THE HIGHER THE RISK, THE HIGHER THE PROFIT).

Now the investor must decide if he is ready, willing and able to follow. Up to now no confidential information needs to be exchanged. IN THIS CASE, NO TIRE KICKERS ARE ALLOWED TO APPLY. TRADING DESK DO NOT HAVE TIME TO "EDUCATE" UNQUALIFIED INDIVIDUALS.

If the client accepts and wants to proceed a proof of funds and a passport copy is required. Depending on the relationship a client has additional a client information sheet must be send. KYC IS A MUST.I AGREE. AND AML DECLARATIONS MUST BE FILED AS WELL.(IN OTHER WORDS, WHAT WOULD YOU DO OR USE THE PROFITS EARNED FROM THIS TRANSACTION?)

If the client passes now due diligence he will receive the private placement contract with all details and on demand of the investor a meeting will be arranged where questions will be answered and additional information will be exchanged. THE 'BIRD'S job is to pre-qualify the client. A financial advisor better not introduce an individual wanted by the INTERPOL or FBI or ____.

During the meeting or after the meeting the investor can freely decide if he wants to proceed. NO TIRE KICKERS ARE ALLOWED TO APPLY. THIS TYPE OF TRANSACTION IS NOT FOR EVERYONE AND QUALIFIED INVESTORS KNOW WHAT THEY WANT.

If the client wants to go on he can sign the contract and has to follow the procedure as per contract. HERE, I DO AGREE. IF THE ULTRA-HNWI DECIDES NOT TO PROCEED, HE OR SHE, CAN STOP AND REMOVE HIM/HERSELF FROM ANY FURTHER PROCEDURE. THE CLIENT'S ATTORNEY WILL DRAFT A VERY NICE LETTER AND EXPLAIN WHY THE DEAL CAME TO A STOP.

I hope the information is helpful !

Since: Jul 11

Location hidden

#703 Oct 22, 2012
WEST PALM BEACH - A 25-year old man ran an audacious $10 million investment fraud out of Boca Raton, using the money to finance his jet-set, lavish lifestyle and gamble big at Las Vegas casinos, according to federal court documents.
Donald R. French Jr. launched what the FBI has described as "a classic Ponzi scheme" when he was just 21 years old, allegedly convincing clients he could get them returns as high as 50 percent by investing in such things as emeralds. He spent the past five years living in Rome, visiting about 30 countries and gambling away at least $565,000, records show.
His jaunts around the world ended this summer when he was detained in South Africa and shipped back to Las Vegas to face charges he passed $750,000 in bad checks at casinos, court records show. After he pleaded guilty to a felony charge there, federal authorities took him into custody. He arrived in South Florida in handcuffs last week to face a wire fraud charge that could carry up to 20 years in prison.
French, wearing a blue jail jumpsuit, was ordered held without bond Thursday while he awaits trial. Besides his extensive travels, French had obtained permanent resident status in Rome where he lived with his fiance and their 3-year-old daughter, wrote U.S. Magistrate Judge Dave Lee Brannon.
French has freely admitted to duping investors who entrusted their money with him and his purported hedge fund, D3 Capital Management LLC, court records show.
When an FBI agent sat down with him in July, French came clean that he invested only a small percentage of the millions he solicited from about 20 clients, according to court documents.
"French said he was able to induce investors to invest because of his ability to lie and manipulate people through his 'gift of gab,' " wrote FBI Special Agent Daniel Szczepanski.
French had dabbled in acting with his resume on an Italian casting agency website comparing the Michigan native's All-American looks to Brad Pitt. He lists residences in Boca Raton and Rome with his one screen credit coming in a 2007 Italian movie "Matrimonio alle Bahamas."
French incorporated the hedge fund in March 2008 with his last office address in the heart of the upscale Mizner Park shopping area in Boca Raton. D3 Capital Management had billed itself as "a premier provider of global investment management" with clients around the world and offices in Hong Kong and Rome.
The hedge fund's website offered investors a chance to access their portfolios to check out their robust investments in foreign currencies, emeralds and a solar-energy project in Italy, court records show.
It turns out that the office in Mizner Park with nothing more than a phone number and mailing address. The investors' portfolios were mirages with French and co-conspirators cooking up the numbers, court records show.
Investors' money flowed into French's pockets with him racking up $1.48 million in debit card purchases, withdrawing $1.28 million in cash and paying $62,000 to drive high-end vehicles, records show.
French convinced one investor to entrust nearly $2 million with him, Szczepanski wrote. He had promised her she would earn an annual return of 50 percent, records show.
She initially invested $954,000, but French came to her in February 2011 to tell her that the money had become tied up and she needed to put in an additional $1 million to get it out, records show. French allegedly accompanied her to a bank in Boston as she made the $1 million transfer to an account in Broward County.
When questioned by the FBI agent, French admitted he used the investor's money to pay a $450,000 gambling debt at The Cosmopolitan of Las Vegas casino, records show.
Records from his Las Vegas criminal case show that from April 2011 to June 2011, French was back at The Cosmopolitan, passing about $600,000 in bad checks there.

Since: Jun 10

Tallinn, Estonia

#704 Oct 23, 2012
Christina wrote:
Thank you sulevss and Charles for your responses!
sulevss,
Yes, the JV and POA are definitely my biggest concern. I have read somewhere that stealing money with just those alone is possible, but I'm still not understanding how it works; do they forge his signature on documents, and such?
Christina
To steal Your money with POA and JV papers is very easy.Maybe the process is already started? You must talk to Your bank explaining what papers You have given to others people ant ask bank how to stop it.For bank it is easy and fast.But You must act NOW!Hope it is not late.
Best
DOMOYOSR

AOL

#706 Oct 26, 2012
NO JV/NO POS...show funds, pass compliance.block the funds (or admin hold for transaction )and do
not give up control of funds. Good Trader can get
a contract with 10M or more with that. Under 10M.
the circumstances subject to significant scrutiny.
Easier to lose $ than to earn $. DON
Gustav

Europe

#708 Nov 29, 2012
I have a friend of mine who has been introduced to a platform, but I don't know if what the platform is asking for is the normal practice.
They are asking for full banking rights. They have asked my friend to swift funds to USA and from the the funds will go to a Nigerian bank, where they will be swifted to the platform with full banking rights.
Does one need to give the platform full banking rights?
OneHopefulWorld

Commack, NY

#709 Nov 29, 2012
Gustav wrote:
I have a friend of mine who has been introduced to a platform, but I don't know if what the platform is asking for is the normal practice.
They are asking for full banking rights. They have asked my friend to swift funds to USA and from the the funds will go to a Nigerian bank, where they will be swifted to the platform with full banking rights.
Does one need to give the platform full banking rights?
DO NOT, under any circumstances, send this money. It will be lost! Most of the legit platforms operate out of western Europe, and given a choice none of them will ask for funds to be brought into the USA, due to all of the various banking restrictions. And absolutely NONE operate anywhere in Africa!!!!

Also, legit platforms allow the client to keep their funds in their own account in a Top World Bank. If they are not already in a Top World Bank, they will usually have the Correspondent Bank in Europe that deals with the client's bank issue a guarantee on the funds. In certain circumstances the platform will ask the client to move their funds to a Top World Bank if the Correspondent Bank won't sign off, but the client then transfers the money from one of his accounts to another one that he has set up in the Top World Bank.

The client blocks the funds (usually by MT760, but there are a few different ways to block, depending on the details of the file), and the funds never leave the client's control.

Since: Jun 10

Tallinn, Estonia

#710 Nov 30, 2012
Gustav wrote:
I have a friend of mine who has been introduced to a platform, but I don't know if what the platform is asking for is the normal practice.
They are asking for full banking rights. They have asked my friend to swift funds to USA and from the the funds will go to a Nigerian bank, where they will be swifted to the platform with full banking rights.
Does one need to give the platform full banking rights?
In real PPP(only in EU) client do not give any rights to ANYBODY!
And now there is no PPP under 10M+.Hope it helps.Best.
Gustav

Europe

#711 Nov 30, 2012
Thanks Sulvess

Has anyone delt with a company called Royal Ridge in the states.
nathen

Bangalore, India

#722 Feb 3, 2013
If all the above said is true...why do corporates go out of funds. Y do they show deficit, loss ... all of them shud be making hell a lot of money and we shud have alleviated poverty from the face of the earth by now. no somalia's at all......

What i've come to learn is there are banking procedures that help big corporates make money in such profit sharing investments and the money is used up for charity (off course not in reality).

There is so much information but how do u do a reality check....everyone is the nearest to the program manager...or the trading programmer.....the story will keep on going....believe in achieving simple things ....
Atul Shah-Mumbai-Indi a

Mumbai, India

#727 Feb 9, 2013
Any one can guide me that this (PPP) type ot trading can be done from / through India or Indian banker??
OneHopefulWorld

Commack, NY

#728 Feb 9, 2013
Atul Shah-Mumbai-India wrote:
Any one can guide me that this (PPP) type ot trading can be done from / through India or Indian banker??
Atul - Please provide your email address and I will send you information on a platform that will accept funds in a few of the major banks in India.$100M USD minimum (about 540 Crore)

Since: Jun 10

Tallinn, Estonia

#729 Feb 10, 2013
Atul Shah-Mumbai-India wrote:
Any one can guide me that this (PPP) type ot trading can be done from / through India or Indian banker??
PPP works ONLY with EU accounts(not less than 10M+.
Question

Beacon, NY

#730 Feb 11, 2013
I spoke to someone who was helping me clean my credit. He did a great job and i have a perfect credit now. I was able to get my hands on some credit cards with very high limits. Now, this same person has a private placement platform opportunity in his arsenal. He says that $120k will return me $100k per month for 10 months. It sounds too good to be true. I was reading through the details and it says that i can put the $120k in any account i want and then an "administrative hold" will be placed on the funds so that they cannot be used until the 10 month period is up. I am new to this. Does this makes sense? He said the average return is about 20% per week. I realize that nothing is guaranteed but is it real? Is my $120k safe? Any help here would be appreciated.
OneHopefulWorld

Commack, NY

#731 Feb 11, 2013
Question wrote:
I spoke to someone who was helping me clean my credit. He did a great job and i have a perfect credit now. I was able to get my hands on some credit cards with very high limits. Now, this same person has a private placement platform opportunity in his arsenal. He says that $120k will return me $100k per month for 10 months. It sounds too good to be true. I was reading through the details and it says that i can put the $120k in any account i want and then an "administrative hold" will be placed on the funds so that they cannot be used until the 10 month period is up. I am new to this. Does this makes sense? He said the average return is about 20% per week. I realize that nothing is guaranteed but is it real? Is my $120k safe? Any help here would be appreciated.
They are not referring to managed buy/sells of MTNs or anything similar, as those do not operate at such a low level. If you get more information you will probably find out that this has something to do with a managed Forex account or something of that sort, and therefore your funds are at risk.(This assumes the people you are dealing with are not a total scam. Whatever you do, do NOT transfer your funds to anywhere where you can't call the bank or brokerage house directly and confirm you have opened a legitimate account that is in your name only. Usually on those accounts you do have to sign off that the trader is allowed trading access only. That means that they can't remove funds from your account, BUT they can have trading losses that would reduce your account accordingly.)

If that's the case and you are OK with the risk and who you are dealing with, that's fine as long as you are going in with your eyes wide open. Just don't confuse this with what (uneducated) brokers (and scammers) call "PPP", which are actually managed buy/sells of bank instruments.
Tom

Palm Desert, CA

#732 Feb 11, 2013
Shannon:

I am searching for an attorney who handles these types of investments. I saw your inquiry in 2009 and wondered if you were successful with a placement or happen to have an attorney?
Thank you!

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