Quatloos! > Investment Fraud > HYIP & Bank Debentures > EXHIBIT: Omega Trust & Trading

EXHIBIT: Omega Trust & Trading Ltd.

"The Lord's Warehouse is full" proclaimed retired electrician Clyde Hood of Mattoon, Illinois,  after fleecing thousands (if not millions) of dollars from various people who invested in a bank debenture scam known as "Omega Trust & Trading". Years after this alleged 275 day program was supposed to be completed, it still has not paid a penny to investors, giving it perhaps the single worst monetary payout of any bank debenture scam (and there have been a lot of them). Even after Omega failed to meet numerous deadlines, even more fleecing went on in the guise of two new "programs' called "Alpha" and "Destiny" -- neither of which have paid a dime, either.

This page examines the Omega/Alpha/Destiny scams, and how they were perpetrated. This page is under construction as we are daily receiving more materials and information from those who have been scammed by these "programs" (And yes -- believe it or not -- some morons still believe these programs are real!). This scam is instructive because it is very similar to probably 99% of all the bank debenture scams -- the Omega "lenders" are just have been the slowest we have ever seen in coming to the realization that they have been scammed.

The Omega Program
(from our October 1999 Newsletter)

After five long years, victims of one of the longest-running bank debenture scams of the 1990s have finally realized that they have been scammed. Yes, we're talking about Omega and Destiny, two programs in which funds were pooled so that investors (called "lenders") could invest in various bank debenture programs. The problem is, as we have repeatedly chronicled, is that bank debenture programs do not exist.

The bank debenture scam is one of the best-known to law enforcement, because it became so prolific in the mid-1990s. The storyline is that there is a "secret" banking system, in which the "prime banks" and the ultra-wealthy make trades that yield 70% per week and upwards. According to the storyline, so called "little people" (small investors) don't have the money to enter into these transactions, so they must "pool" their funds together and let someone who does have a magical "in" to this system invest for them.

This is, of course, a total scam. The bank debenture scam has resulted in literally hundreds of prosecutions for securities fraud, and none of the defendants in those securities fraud cases could even introduce a shred of evidence that this "secret banking system" exists. Virtually all law enforcement agencies in all countries put out warnings that about bank debenture scams (also called HYIP and MTN scams, among other names), and it was the subject of discussion at the Financial Fraud Convention held in London this past spring.

Over the years, we have seen literally hundreds of these scams, by way of victims who have contacted us for information. No such program has yet proved to be valid, and as noted the SEC has successfully prosecuted hundreds of people for pitching this scam. Moreover, we know many of the officers of the world's real "Top Banks" and we can assure you that they laugh with the rest of us at the mere mention of the "secret banking system" - correctly pointing out that the mathematics are such that if such a system even existed, that one such bank would within a couple of weeks own all the currency in the world (which of course they do not).

Information regarding Bank Debenture / HYIP scams can be found at http://www.quatloos.com/ stkscams/ hyips.htm Listed at the bottom of that page are some examples of people who have or are being prosecuted for running a bank debenture scam. If you want to read some more, go to the SEC's website at http://www.sec.gov under the non-Edgar database and type in "prime bank" - you will see everything you need to know.

So what does this have to do with Omega? Because Omega is premised on the fact that its promoters could "pool" the funds of Omega "lenders" and enter this secret banking system (which doesn't exist).

When we first starting looking at Omega, we thought that it was just another Ponzi scheme, where successive layers of investors are paid out as an inducement to others. Turns out that Omega was not a Ponzi scheme at all - to the contrary, it was just 100% pure fraud. Nobody was paid out anything, except that apparently a dribble of money is released every now and then as "proof" that moneys exist (they don't).

There is no "secret fund" of Omega moneys waiting to pay out disappointed Omegans (as they call themselves). Instead, their moneys were scammed from them, not recently but up to five years ago when they first bought into the scheme. The Omegans are just now coming to the reality that their entire prospect of a payout was based on the bank debenture programs which have been proven time-after-time-after-time to be a total scam and without any validity in the real banking world (secret or not).

Although the investors were sold "units" which represented "loans", it is clear that these units were a security as defined by the Securities Act of 1933, and that the sale of these units without registration or prospectus amounted to securities fraud. From what we can deduce, some of the "lenders" were also told that they would not have to report what they obtained from the alleged big-payout on their income taxes, or else it would be paid in an offshore account - conduct which would clearly be tax evasion.

The amazing thing is that years after being scammed, the Omega investors continue to believe. This is probably because the Omega promoters chose to market to a group of people often preyed upon by scam artists, meaning the elderly and the poor - relatively unsophisticated people who lack both the means or knowledge to adequately investigate the fact that they have been scammed or to report it to law enforcement.

Virtually every month the Omega scam announces a new date for the alleged big payout, and exhorts its victims to "just hang in there" for a little while longer. Fortunately, some people have waited just a little too long, and we soon expect to see the Omega program as a source of interest in the major newspapers - and not for paying out.

There are a few Omegans still exhorting the other Omegans to "just hang in there" and not take their complaints to law enforcement as they should. Whether these people are linked with the promoters, or have just been hoodwinked to an enormous extent, are not known. What is known is that attempting to persuade people not to report the existence of a crime can amount to the separate crime of obstructing justice, so it is possible that even some of these otherwise innocent investors might be called on the carpet.

Unbelievably, there are still some people who are selling units in Omega; doubtless these folks also would have tried to sell berths on the Titantic after it hit the iceberg. Another scam apparently involves the sale of "refund units" in Omega - i.e., you throw good money after bad in an attempt to get your first moneys paid back. Unfortunately, law enforcement is watching this like a hawk, and there would be no way for the Omega promoters to make a substantial payout even if they had the money to (which they don't).

What if you have bought in to Omega, what do you do? The first thing to do is that you must come to the realization that you have been scammed, and that you are not going to get the big payout promised to you. The second thing you need to do is to realize that if you have any chance of getting your money back, it will be by way of a "Victim Restitution Order" against whoever sold you your interests. Thus, the third thing you need to do is contact law enforcement immediately, preferably your local office of the Federal Bureau of Investigations and State Attorney General. Fourth, you ought to talk to your attorney or accountant about sending your Omega promoter a 1099 for the amount you lost - making them liable for taxes and possibly giving you a deduction for the amount you lost.

According to e-mail we have received, a support group for those persons who have been taken by the Omega scam can be found at http://www. insidetheweb.com/ mbs.cgi/ mb824300

To contact your nearest law enforcement agency, see http://www.quatloos.com/ lawenfor/ lawenfor.htm

Omega Rolls Into 2000
(from our December 2000 Newsletter)

Speaking of bank debenture scams, after our last article on the Infamous Omega Trust & Trading, a bank-debenture scam run out of the Mattoon, Illinois, area, we received numerous telephone calls and e-mails from people insisting that this program -- which is more than a half-decade "late" in funding -- would certainly fund by Thanksgiving.

For the hard core believers, we offered a bet: If Omega funded by Thanksgiving, 1999, we would DOUBLE their money, but if Omega didn't fund they should send us $100. We are making similar offers to some for Christmas and New Years, but as we haven't seen the $100 they owe us for Omega not funding by Thanksgiving, we're doubt they will send us their $100 for Christmas or New Years, either.

Omega operated on the premise that you would pay $100 to Omega, and then it would pay out at least 50:1 but more likely some astronomic figure like $1.5 million per $100. This is typical of bank debenture scams, including many bank debenture scams where the crooks will enjoy the New Year's fireworks from their TV set in the penitentiary.

What makes Omega unique is that Omega was one of the first bank debenture scams aimed at devout Christian believers -- they kind of people who take blind faith seriously. And though the evidence is conclusive that Omega was just another scam, these people still believe that after more than five years after it missed its first payment deadline, that Omega will still pay!

Still, even after the "Final" deadline of December 31, 1999, has passed, the "lenders" continue to believe that there is some worldwide cartel of European bankers, the Federal Reserve, the Illuminati, Freemasons, the Moose Lodge, Spicegirls and New Orleans Saints, who are "conspiring" to hold up the Omega funds. Shows you just exactly how anti-government paranoia can be utilized by scam artists for monetary gain -- a disturbing trend among crooks, including the promoters of Omega.

The truth is that the Omega funds are long gone. We know of several private attorneys and private investigators who have reviewed Omega, and found that absolutely no funds exists to pay the "lenders" as they are known. Criminal complaints have been filed, and we expect to see a rash of civil lawsuits filed shortly after the New Year, to attempt to recover whatever is left in the accounts of the crooks who promoted this program. Ditto for Omega's spin-off scams: Alpha and Destiny -- absolutely no money is in those programs, either.

But for those really hard-core Omega believers, we offer a $10,000 challenge: Quatloos will pay $10,000 to the first person who can prove ANY of the following to the satisfaction of a United States District Judge:

 

• The existence of a "bank debenture roll program" with an average yield of more than 50% per annum.

• That any of the Omega money was even invested in a legitimate "bank debenture trading program".

• That any of the Omega money was legally invested for the benefits of "lenders".

• That the Omega moneys available for payment to "lenders" exceed what the "lenders" originally paid in, i.e., that "lenders" as a group will receive more back from Omega than what they put into it.

• That Omega has ever been audited, or run as a legitimate financial program.

• That the Omega program is anything other than a criminal scheme to defraud the "lenders".

After our last article, we received many e-mail messages from hardcore Omega believers that the promoters would sue us for libel & slander. We told them to "bring it on" - and we repeat this challenge today. They haven't sued us, nor have they even threatened to sue us, and in fact the last place these crooks will want to be is in a courtroom -- although hopefully they will be there soon enough courtesy of the State of Illinois, the SEC, the FBI, or other law enforcement agencies that are investigating this blatantly fraudulent scheme.

Omega Fantasy Continues
(from our February 2000 Newsletter)

For the last several months, we've been following that criminal scheme known as Omega Trust & Trading, a bank debenture program which is more than a half-decade late in paying the huge returns it promised.

We're ready to go on record as saying that the people who still believe in Omega after all this time, and who still believe that it will pay, are some of the stupidest people on the face of the Earth. You would have to be a real mental midget to believe that this scam might actually pay out something, but some of these people go on day after day, believing that there is some worldwide conspiracy which is holding up their payments, but that somehow the crooks who perpetrated this scam will somehow beat the conspiracy and pay these idiots their millions.

To get an idea of the New Age "Goo" that people believe in that makes them susceptible to scams such as this, you only need to visit one of the several internet bulletin boards for the still-believers. One of these is found at http://www.insidetheweb.com/ mbs.cgi/ mb632512 and several people have sent us (Thank you!) copies of the mentally unbalanced junk that these people engage in with the hope that Omega will pay out, such as occasional meditation sessions, as well as exchanging rumors of the "global conspiracy" that they believe is holding up alleged Trillions of dollars that have accumulated in Omega, which is nothing more than a bank debenture fraud of a type we have chronicled on too many occasions.

Want to know how gullible the "Omegans" were? Many of them sent in their "loans" in cash, wrapped in aluminum foil, and sent by an express courier service such as Federal Express or United Parcel Service, i.e., leaving no money trail which could be followed. They were told, and believed, that their money would be invested in European banks, to be traded as part of "secret" programs that would yield a huge return. But the return to-date has been zero, which of course is the average and typical return of these bank debenture programs - in fact, no bank debenture program has EVER had a higher payout than zero, and we have offered a $10,000 challenge to anybody who can prove the existence of even a single bank debenture trading program which was successfully completed from start to finish with a profit exceeding more than 50% per year.

This zero return comes more than seven years after a guy who went by the name of Clyde Hood of Illinois, started selling "units" which of course were not registered with anybody, anywhere, so that the Omega "lenders" could "pool" their funds together to invest in the secret European trading programs. Later he was joined in the program not by any international financeers, but by a couple of promoters whose financial experience was mostly in promoting multi-level marketing deals.

Now, of course, Clyde won't return the "lenders" money, and won't even return their calls! Yet, still the Omegans believe. As P.T. Barnum said "There's a sucker born every minute", and they all seem to have collected in Omega. We have no doubt that a year from now - or even 10 years from now -- the idiot Omegans will still be sitting around talking about all those millions (the "gift" from God, they call it) they will soon be receiving. As Forest Gump said: "Stupid is as stupid does." The promoters of Omega chose well in their victims, being either fundamental Christians who "keep the faith" no matter what, or New Agers who are so stupid that they will believe in anything ("Omega today, pyramid power tomorrow!).

So why hasn't the SEC taken action against this scam yet? The reason, as the SEC publicly announced a couple of weeks ago, is that the SEC is simply swamped by investigations and prosecutions of bank debenture scams like Omega. The great wealth created in the legitimate stock market has made people both hungry and greedy to "beat the Joneses" with the un-credible performances of 800% per week, or "turn $100 in millions" like Omega promised. But of course the fact that the SEC is behind in busting these scams doesn't mean that programs like Omega are real, or will pay.

The sad thing is that a few of these Omegans have traded what little money they had for "units" and now in a few cases desperately need the money for medical care, and even such basic things as housing, etc. These people are literally going from day to day - unconscionably lead on by the people who every week tell them that their long-sought packs will be delivered "next week" - and probably foregoing other, more real-world planning which could actually help them out.

In the end, more sad than funny.

From our April 2000 Newsletter

On a lighter note, perhaps the longest-running bank debenture program which has never paid a dime is still "going", at least in the minds (such as they are) of the suckers who bought in.

We're talking of course of Omega Trust & Trading, a bank debenture program which stands out solely because the investors into that program are too dumb to figure out that they have been scammed. Even years after the original 275-day cycle for the non-existent "trades" expired, the Omega "lenders" as they call themselves, still believe that their initial $100 per unit investment will yield them millions per unit.

But to get right to the humor, we have received numerous e-mails from lenders which emphatically state that Omega is "real" and that it will "definitely pay out" - as soon as the last "roadblock" is removed. So what is this roadblock? First, strap yourself in for violent laughter.

Many of the lenders now are convinced that the fictitious Omega pay day is being held up by a bunch of "shape shifting lizards" who are in charge of the U.S. government and the world banks! Honestly! They have derived this "theory" from the writing of David Icke, who widely espouses the "shape shifters" theory on his bizarre website http://www.davidicke.com (we have received no indications, however, that even David Ickes believes that the Omega program is held up by the lizard shape-shifters).

To use the term "wacko" here would be a gross understatement, but coming as it does from these Omega simpletons who have long been convinced that the Rockefeller family has colluded with the "big banks" to embezzle the Omega quadrillions, this is not surprising. Some of the theories the Omegans have come up with over the years have been gut-bustingly funny, such as that Omega has grown to where Bill Clinton and Alan Greenspan are regularly briefed about it (doubtless, neither know anything about this scam unless someone has mentioned it to them as a joke), and that Congress has passed legislation to help the "lenders" get their cash.

Amazing that people could be so stupid to believe in this program, but the Omega lenders are at the bottom of the intellectual barrel. Even after the original Omega program didn't pay off as it should, the Omega lenders then were persuaded to buy into yet an identical program (which, Surprise! Surprise!) didn't pay off either, called Destiny.

But that wasn't the end of it either. You'd think that no rational person would buy the units of a program that had failed, but it hasn't kept one of the program promoters from selling so-called "refund units" although to buy these units you have to send cash to him wrapped in aluminum foil by Fed-Ex or UPS. Of course, the promoter wasn't actually giving refunds, but such technicalities have never deterred Omegans from continuing to believe.

Can the Omega lenders even spell the word "suckers"? I doubt it. In the world of scams, these people may go down forever as the dumbest of the dumb, distinguished from other scam victims as the people who couldn't just let go and figure out that they have been had.

We have created a new Exhibit to our Cyber-Museum of Scams and Frauds, where you can hear actual audiotapes of one of the Omega promoters telling his flock that their countless millions are right around the corner - this was back in 1995, of course. Our new Exhibit is at http://www.quatloos.com/ cm-omega/ cm-omega.htm Well worth a visit, and our museum is like the rest of our site: 100% free.

Amazingly, a few Omega victims groups went in and set up support forums to help each other figure out the Omega scam, and to lend mutual assistance to one another. However, persons probably associated with the scam artists made a variety of false statements about these forums, and had them shut down (a popular modus operandi of cyber-scam-artists). Thus, we have also created a new Moderated Omega Victims Support Forum of our own at http://www.quatloos.com/ cm-omega/ fo-omega.htm

And as a final note about Omega, some months ago we issued a $10,000 challenge to anybody who could prove that Omega is a legitimate financial program. To date, nobody has even tried for the $10,000 which gives you an idea of the sheer nothingness upon which these people are stupidly basing their bizarre hopes.

From our July 2000 Newsletter

Omega Scam Gets Dumber AND DUMBEST

Since we've been writing this newsletter, we been laughing about a bank debenture scam that has been going on since 1993 - without paying a dime - and which has some of the dumbest followers of any scam in history.

That's right, we're talking about Omega Trust & Trading Ltd., a "prime bank" scam which was run out of the Mattoon, Illinois, area by somebody using the name "Clyde Hood". This program promised people that if they put up a mere $100 that they would get back $5,000 in 270 days.

But as you can imagine it somehow didn't pay off.

Still, some of the original investors still believe that this program will pay! They have in their (midget) minds that untold trillions have been accumulated by this program, but that the money is behind held by unnamed "European bankers", and of course the group which is mentioned in just about every nut conspiracy theory: the Rockefeller family.

To give you an idea how stupid these people are, we are going to reprint below an actual letter received from one of the Omegans which describes a non-existent court action which they believe is going on in federal court somewhere:

"This is not I repeat not a rumor this is for real.

"We have a emergency call to prayer for everyone. David Rockefeller of Chase Manhattan Bank and George Bush Senior are blocking the delivery of this and other programs. They are defying a Federal Judge order that is demanding this be delivered immediately. There is a Supreme Court Justice that has been in the courtroom the last 6 days advising the lady Federal Judge. This is happening in Manhattan, New York.

"We are told that if this is not funded by 9:00 AM Thursday that they all are going to jail, the bankers, Federal Express, the attorneys and anyone else that is involved blocking this program from delivery. The federal judge stated that she will make this public on national television if this is not delivered.

"The international bankers around the world are hopping mad and demanding this be finished. This is blocking many other major transaction and we are about ready to have a world wide financial crisis if this does not deliver.

"Please send this to everyone you know in the program and others to lift this up in prayer and bind David Rockefeller and George Bush and allow this program to finish.

"This is what I know at this time, lets all join in and petition our Heavenly Father to intervene and release this program now.

"Sincerely Yours

[name withheld to protect the identity of somebody who is incredibly stupid]

You have no wonder how these people are so stupid that they believe this nonsense, but the fact is that they are. These are the same people who a couple of months ago bought into the theory that the U.S. government is being run by a bunch of "shape-shifting lizards" from another planet.

From what we have seen, they are also being led on by several scam artists - particularly one from the New England area who has a criminal background whom we intend to name shortly -- which are trying to push other bogus programs on them, such as other HYIP programs, and also some network marketing programs. We have helped some of the Omegans refer these leeches (that is the only accurate description) to the appropriate law enforcement authorities, and we hope to report on the success of those criminal referrals in our next edition.

Nonetheless, blaming the government, "European bankers", or whoever is a common excuse for the scam artists who sell bank debentures and HYIP programs (which don't exist). When these programs don't pay out as promised, they blame everybody except themselves, and concoct wild conspiracy theories about why the money didn't come back, although the truth in every case is that they simply embezzled the money.

And the weird thing is that some people believe them, and continue to believe them even when faced with the truth. What happens is that when people get into these deals, they tell their family and friends what great deals they are (and often get their other family members and friends into these deals, too). Then, when the thing goes bust, instead of having to admit they were scammed, it is easier for these people to believe (and in many cases, concoct) these wild stories, so as to save face with their loved ones.

But that doesn't make these programs any more real. Plus, what happens is that this lets the scam artists get away, to go hurt other people in the next deal. Better that people should own up to the fact that they have been scammed, and at least try to give law enforcement a hand in catching the crooks, or telling others their story so that at least they don't get scammed, too.

Finally! Clyde Hood & 18 Others Indicted

U.S. Attorney's Office has several press releases, etc., as well as the copy of the actual indictment in Adobe .pdf format at http://www.usdoj.gov/ usao/ ilc/ hood/ notification.html

The Mattoon, Illinois, Journal Gazette & Times-Courier has done an excellent job reporting on the Omega scam and prosecution of Clyde and his Hoods. See http://www.jg-tc.com/ NEWS/ omega.html

Post-Indictment Rumors

We've created a new page JUST for the wackiest post-Indictment rumors. Click Here to get a good belly-laugh!

As a special treat to visitors of this Omega Scam Gallery, we bring you real audiotapes of messages given to Omegans by the main promoter of Omega, a person who holds himself out as being "Clyde Hood" of Mattoon, Illinois.

• Clyde Hood on March 28, 1995
• Clyde Hood on April 1, 1995
• Clyde Hood on April 3, 1995
• Clyde Hood on April 5, 1995
• Clyde Hood on April 10, 1995
• Clyde Hood on April 12, 1995
• Clyde Hood on April 13, 1995
• Clyde Hood on April 15, 1995

The Clyde Hood Letter of October 11, 1999

The following is a letter which Clyde Hood purportedly sent out to the Omega "lenders" advising them of the termination of the program. As far as we can determine, these letters were only sent to a very few lenders, although the intention is apparently to give the impression that all lenders were being refunded.

October 11 1999 Dear Lender, Unfortunately. I must advise you that it has become necessary to terminate the private party loan agreements with all lenders and return to each recorded lender the full outstanding amount which is recorded that he or she loaned. Enclosed with this letter for delivery to you is a check made payable to you for the amount our records reflect to be the full outstanding amount which you loaned. I regrettably report these circumstances to you, and I provide you with the following summary explanation as to the circumstances and reasons for this action. As of late 1997/ early 1993, the United States Government and the State of Illinois had initiated and been conducting over at least the previous one year period of time an investigation concerning private party loan agreements. During that period of time, they had apparently issued a number of subpoenas directed to a number of persons commanding that these individuals appear and produce various documents at proceedings which were being conducted to investigate the private party loan agreements. Becoming aware of this on-going investigation, I asked an attorney to contact the authorities on my personal behalf and attempt to communicate and discuss with them the subject matter, circumstances, and concerns which the authorities apparently had in having initiated the investigation. In response to his contacting them, he was advised that the investigation was not in an "advanced stage", and he would simply have to await a response through delivery of correspondence from the authorities to him concerning the matter. Although he was advised that such correspondence was forthcoming, no correspondence was ever received. I further then learned that the private party loan agreements were apparently the subject of investigations by multiple federal and state government entities, and it was reported to me that various administrative or judicial proceedings were being initiated or conducted in various federal and state jurisdictions throughout the country In conducting its investigation, the Federal Bureau of Investigation seized a computer, computer software, various files and other personal property, including certain checks, money orders and cash related to lenders or possible lenders and the private party loan agreements. The federal government then advised that it was forfeiting, confiscating and converting the computer, computer equipment and currency it seized to its own property and use. Following these circumstances the authorities then advised my personal attorney that their investigations would simply have to run their course without them engaging in correspondence or discussion of the matter with him. Further complicating the matter at that time, it was reported that apparently certain individuals had obtained a copy of a private party loan agreement and were circulating and obtaining loan agreements Page I of 3 With others under false representations and pretenses and "pocketing" the money received by them for their own use. Based upon the foregoing circumstances, I attempted to terminate the private party loan agreements during the early part of 1998. However, it was reported to me that the majority of the lenders did not want the agreements terminated, with many of the lenders reporting that they were upset with the actions taken and difficulties caused by the law enforcement investigations, such that they were willing to forgo return on their loans with instructions that their loans be applied and utilized towards the efforts and expenses of dealing with the law enforcement actions and investigations. Since late 1997/early 1998 and continuing to the present time, I provide you with the following summary report of problems and difficulties with which I have had to deal. Law enforcement agencies have subpoenaed various bank records. An investigation was directed towards me, among others, in the State of Hawaii. The government authorities have been conducting grand jury proceedings in the State of Illinois which has resulted in a number of my family, friends and acquaintances being subpoenaed to testify, along with apparent investigation of their own business activities. During March of this year, I was advised that a search warrant was served on a bank in Illinois and various checks and perhaps documents were seized by the law enforcement officials from bank. I have never received any accounting or report from the law enforcement agencies as to what may have been seized, or what has become of the sized materials, and the bank has advised me that it cannot discuss the matter with me in that it was informed by the law enforcement officials that it could not discuss the matter with me. I have recently received materials directed to me concerning an investigation and proceedings being conducted in the State of Missouri. Although I believe the investigation and proceedings to be misplaced, the State of Missouri advises me that it is my burden, not theirs, to prove that they are misplaced, and if I do not an "Order" will be entered against me. It has additionally been reported to me that various proceedings may be initiated in the State of Ohio. It also appears that there may be a rather extended situation of persons circulating and transacting private party loan agreements under representations that those private party loan agreements are affiliated or connected with me, when they are not. Additionally, it also appears that a large amount of misrepresentations and misinformation are being circulated, including misrepresentations and misinformation on the internet, which would be too lengthy to attempt to address. Based upon the foregoing, and what I can only anticipate and foresee as a continuation and escalation of what has transpired in the past, with accompanying fears that your loan proceeds may be seized or otherwise affected by law enforcement officials. I believe I am left with no alternative but to immediately terminate the private party loan agreements and return to you the full recorded outstanding amount which you loaned in order to as*ure that you will at least have received its return without intervention, problems or difficulties such as has been encountered in the past and/or potential future seizure, forfeiture or other loss. I would hope that you will understand and be appreciative of the enormity of the problems and difficulties which have been encountered and are anticipated or foreseen to be encountered in the future Page 2 of 3 which has resulted in the action which I am taking. To attempt to provide you with a more detailed report would be of a length which is beyond my capacity I wish to emphasize to you that I have terminated the private party loan agreement, returned your money to you with a termination of the efforts and purposes for which the loan was provided. We will not be proceeding any further. As a result of what has transpired, I feel I have no alternative, and not knowing what may be seized or forfeited by law enforcement officials in the future, I am fearful that unless I take this action you might not even receive return of the amount which you loaned I would further hope you will be understanding and appreciative that due to the enormity of the situation, I am not in a position to provide you with a more extensive report or have the time to further completely discuss this matter personally with each of you. Likewise, it would be overwhelming and impossible to receive or discuss this matter with you by telephone, whereby this communication must act as my final report to you with regard to this matter. I further wish to emphasize to you that the enclosed check is in the amount which the records at my disposal indicate is outstanding with regard to the amount which you loaned. As I mentioned above, it appears that there are certain persons circulating private party loan agreements under misrepresentations that they are affiliated or connected with me, with these individuals then "pocketing" the money received by them. If you do not believe that the enclosed check accurately returns to you the outstanding amount of what you loaned, it will be necessary for you to communicate with me by mail, and in so doing it will be necessary for you to deliver to me a reproduced copy of your private party loan agreement, plus a copy of both sides of your cancelled check or other documentation confirming the amount which you loaned. Such correspondence and documentation should be forwarded to the following address: Clyde D. Hood P 0 Box 767 Mattoon, IL 61933 I would again like to express to you my regret with regard to the unfortunate circumstances which we have encountered and the necessity of this action. Despite what we have encountered, I have been able to return to you the amount which you loaned without it being seized, forfeited, intercepted or otherwise lost, but we have not achieved and will not be further pursuing the purpose of the loan, whereby there is not and will not be any profit on the loan. Sincerely, Clyde D. Hood Page 3 of 3

The Private Party Loan Agreement

This is a copy of the document which was used to defraud the Omega lenders.

PRIVATE PARTY LOAN AGREEMENT This Private Party Loan Agreement is to be initiated between ___________ and an overseas Trust & Foundation firm in consideration of this sum of ________ to be used for the operational purposes of the project in the interest of the overseas Trust & Foundation firm. It is understood that these funds will be transferred to the overseas Trust & Foundation firm's project, whereby the loan plus profit will be repaid to the lender in an amount not less than fifty (50) times the amount loaned. Expected time of repayment is calculated to be on or around two hundred and seventy-five (275) days from the date of lending. Both parties understand that financial matters involve risk and no warranties or guarantees are expressed for an exact date of 275 days. It should be understood, this negotiable agreement is for a reasonable time frame thereof. Whenever funds are disbursed, funds will be in the form as designated by the lender. The Lender will as-ume responsibility for any and all fees and/or taxes on these funds. It is understood by the lender that he/she has no access or privy to specific details of operations and no hand in the management of proposed operations. This is a non-recourse agreement between private parties. Receipt and/or signing of this document by the recipient constitutes acceptance of the terms of this agreement. The first Private Party Loan Agreement submitted by each individual or entity is subject to acceptance by the Agent or the overseas Trust & Foundation firm, without recourse. The overseas Trust & Foundation firm, cannot cancel this loan agreement, once accepted, only the lender has the right to withdraw from this agreement after the 275 days. A full refund will be made upon receipt of a written request at the Wauconda, IL address. Receiver states that he/she does have promise of financial asets in an amount sufficient to sustain obligatory indebtedness. An acknowledgment will be mailed to you upon receipt of your loan at our offices. Unauthorized changes to this document Will void the entire agreement. PLEASE MAKE MONEY ORDER OR CASHIER'S CHECK PAYABLE TO. & SHIP TO: [Address Given] Lender: _________________ Or Entity: _______________________________ (Please Type or Print Name) Signature:_______________________________ Address:_____________________________________ City: __________________ State: _____ Zip: _________ Phone:__________________

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