Trader:

A trader is a person who buys and sells securities, financial instruments, loans, commodities or other assets either from his own account or on behalf of others or both.  A trader may be a broker, a dealer, or a speculator.  Depending on the type of trading being done, a license may be required even if the trader is using only his own funds; however, if other people's money is at stake a license to trade is definitely required.

The Scam: In a fraudulent investment scheme, the Trader allegedly possesses incredible financial power, agreements with internationally recognized banks, contracts with private investment trusts and and investment houses, and the ability to make enormous profits from modest investments.  The investor is never, ever allowed to see the Trader's contracts as it would "compromise" the Trader.

    Additionally, during the persuasion phase of a fraudulent investment scheme the victim is distracted from asking to see any authorizations whatsoever.  Financial con-artists (grifters) wrap their scheme with an aura of such secrecy, mystery, and exclusivity that the victim feels he has been granted a rare privilege by having been invited to join the investment pool.  He will not do anything to rock the boat.  If the victim is willing to invest extremely large amounts of cash or securities and insists on seeing a license, a phony one may be produced but again the victim is distracted from following up with outside verification.

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