A Letter of Intent is written once a general agreement has
been worked out between parties such as a buyer and a seller, and outlines the
various points of the general agreement. An LOI is usually non-binding and
contains a non-binding clause.
CAUTION: If the LOI is
binding, then it should be reviewed very carefully by an attorney, and the
reasons for such a commitment need to be reviewed with extreme caution since the
Letter has now become a contract.
The
Scam: A Letter of Intent is just about always used in a High-Yield
Investment Program scam.
The
purpose of the Letter of Intent (LOI):
It
provides the swindler with a means of eliciting a commitment from you. Although the
LOI is virtually useless since it is produced with the intent to defraud,
nonetheless it is a means of forcing you to commit yourself to an
action since you don't know fraud is involved.
It
allows the swindler to use the LOI as a threat you start balking
or is not moving fast enough.
It
is used in Daisy Chains ad nauseam. A Daisy Chain is a chain of
brokers or intermediaries, especially in the UNDERGROUND
NETWORK. Each so-called broker, from the swindler on down,
passes out LOI's like candy, supposedly to protect his spot in the
commission structure. It's all hogwash, but apart from the swindler
himself, most of these people don't know that. With each LOI comes a NON-CIRCUMVENTION
NON-DISCLOSURE AGREEMENT (NCND), also as worthless as the paper it's
written on since once again, the entire purpose of all these agreements is
intent to defraud. Just as a side note, any commissions received by
one of these brokers/intermediaries are derived stolen funds.
