The Dictionary of Financial Scam Terms: The truth vs. the scam

 

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Underground Network / joker broker network

A network of people from all walks of life who are seeking to make money by acting as INTERMEDIARIES in the trade of international goods.  The products include oil, gold,  wheat, sugar, rice, frozen chicken, fertilizer (urea), gems, precious metals, precious woods, scrap ships, cigarettes (usually Marlboros), and anything else that can be bought and sold.

Eventually, the goal changes from the trade of products to the trade of money in the form of currency, infrastructure loans, Letters of Credit, corporate notes (debentures), banker's acceptances, bank guarantees, and finally, High-Yield Investment Programs of one sort or another.

The line of contacts from one intermediary to another is called a "daisy chain".  Each person in the chain must sign a NON-CIRCUMVENTION NON-DISCLOSURE AGREEMENT (NCND).  This document is supposed to legally prevent any of the intermediaries from by-passing each other in an attempt to get closer to the initiator of the transaction since those who are one-on-one with the originator make the highest commissions..

The intermediaries are never allowed direct contact with the originators of the transactions.  Originators are known by many different titles, depending on the transaction.   Buyer, Seller, Trader, Commitment Holder, Trustee, Asset Manager, Owner, Emir, Prince, Sultan, Agent, Minister, President (of a country), these are but a few of the titles bandied about.  A relationship with a Middle Eastern Prince is the most popular contact, and is usually the title of the alleged initiator in a gold or oil transaction.

People in the Underground Network put in extremely long hours, every day, seven days a week.  They spend an enormous amount of money chasing commissions.  Going broke and bankrupt is extremely common.  

Trade paper, mostly bogus or illegally copied, travels from fax machine to fax machine around the world trying to find someone who will invest funds in one way or another in the paper.  The paper can be a so-called copy of a LETTER OF CREDIT (LC), STANDBY LETTER OF CREDIT (SLC) from some bank in Russia or an island in the Pacific Chain.  The format of these Letters of Credit is completely bogus, the deals a sham.  

Sometimes an intermediary will get hold of an old bank document, white-out pertinent information, and peddle it as proof of true information.  And sometimes the documents are stolen, forged, or otherwise fraudulent.  As a matter of fact, WIRE FRAUD is so prevalent in the Underground Network that it is a normal course of business.  

Calls travel from hotels and motels to offices, back rooms, home offices, living rooms, and back again.  Usually, the people in the network are only speaking with other people trying to do the same thing, each stating they have the ultimate contact.  NCND forms fly around the world at the speed of light. 

In fact, a person can actually fax one of these bogus "deals" from the US to someone in the Middle East, and get the same deal back the next day as a great opportunity - from an unknown intermediary in Australia 

Those who have the stamina will eventually hook up with the contact.  Unfortunately, this is the contact who will steal all your money and that of your friends and family and whomever else he can persuade you to suck into the trap of a High-Yield Investment Program, Debenture Trading Scheme, International Currency Scheme, the purchase and sale of Letters of Credit scheme, or a Treasuries Trade Scheme.

Law enforcement is generally unaware of the Underground Network for the simple reason that the majority of the money lost is in the form of telephone bills.  The main victims are the members themselves, racking up thousands of dollars in telephone and travel expenses chasing deals that go nowhere.  There is no law against poor judgment.

 

 

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