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fraud recognition & prevention education, fraud victim advocacy, law enforcement support

Fraud recognition & prevention education, fraud victim advocacy, law enforcement support

                    

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Where did my money go?

If you lost your funds in an investment scam, speak to your accountant about a theft deduction.

 

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High-Yield Investment Program Fraud (Trade Programs / HYIP): truth vs. scam

From The Dictionary of Financial Scam Terms

An easy to understand guide to financial terms used by swindlers.

High-Yield Investment Program Fraud (Trade Programs):

A ruinous scheme in which con artists lure unsuspecting investors into believing that their funds can be used to purchase securities (PRIME BANK GUARANTEES, DEBENTURES, Treasuries, PROMISSORY NOTES, LETTERS OF CREDIT) at enormous DISCOUNT and sell them for equally enormous profits, typically during a forty-week turnaround.

ARBITRAGE, the purchase of FRESH-CUT SECURITIES from a CUTTING HOUSE which are then sold to the SECONDARY MARKET, FORFAITING, DISCOUNT HOUSES or DISCOUNT BANKS, Self-Liquidating Loans, or a combination of all of these terms incorrectly used with wild abandon.

The financial instruments are always issued from a TOP WORLD BANK or PRIME BANK, and a great deal of secrecy is always paramount.

New twists are sometimes heard, but the basic system is always the same -

  1. LETTERS OF CREDIT, PRIME BANK NOTES or PRIME BANK GUARANTEES, DEBENTURES, SAFEKEEPING RECEIPT, or other financial instruments are created against the CONDITIONAL SWIFT transfer of investor funds.

  2. The financial instruments are then "sold on the SECONDARY MARKET" which the swindlers call a trade.

  3. A portion of the profits from the secondary market sale goes to the investor, and the balance is set aside to purchase more financial instruments.

  4. The whole thing starts over again because there are "X" number of trades per week, month, day... and profits are "enormous"- ranging from 500% to 1700% per year, per month, per whatever.

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There are other scenarios touting involvement in INFRASTRUCTURE LOANS supposedly guaranteed by the WORLD BANK, the INTERNATIONAL MONETARY FUND, Swiss Banks, PARALLEL ACCOUNTS, FOREIGN CURRENCY EXCHANGE (FOREX), STANDBY LETTERS OF CREDIT (SBLC), and accounts over which the investor supposedly has sole control.

In every case funds disappear, which usually involves MONEY LAUNDERING.  So what happens to your money?

It goes toward paying new investors PONZI-fashion; it goes into travel, scam expenses, yachts, entertaining, jewelry, more scam expenses, houses, bribes, Mercedes-Benzes, gambling, and accounts stashed away in various countries in SHELL ACCOUNTS.

The way in which securities are used in no way allows for the kinds of profits described by these fraudsters; however, because fraudsters use half-truths and because it is difficult for you to understand the actual uses of some securities and international finance procedures, fraudsters are able to excite your imagination beyond and away from the boundaries of your normal investment precautions.

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