Quatloos! > Advance Fee Fraud > Self-Liquidating Loans

Self-Liquidating Loans

This scam takes us into the world of international finance and arbitrage, where king-sized fortunes may be won or lost overnight. I like these promoters, at least they think BIG. But, although they have big goals, they aim at small minds. And you would have to be a small mind indeed to fall for the . . .

S E L F - L I Q U I D A T I N G
L O A N     S C A M    !

All right, enough of the dramatic build-up. What self-liquidating loans are (these are also sometimes called "Arbitrage Loans") is best explained by how they purportedly work. According to their promoters, there are five simple steps to building a huge fortune in a couple of days:

1. Borrow from $100 million to $500 million on a long-term basis, at least 20 years.

2. Take some of this money and buy collateral, such as Certificates of Deposit, which you pledge as security against the 1/2 Billion you just borrowed.

3. Take some of the other money you just borrowed, and put it into investments which produce income, which you use to make payments on the 1/2 Billion you just borrowed.

4. Take a little bit of the money you have left from the 1/2 Billion and pay broker's commissions and finder's fees.

5. Whatever is left over you keep! Hell, even if its just 10%, that's 10% of 1/2 Billion or $50,000,000 right there -- Tell the Learjet Dealership to stay open late toooo-night!

Well, this is how is supposed to work anyhow. How does it really work? It doesn't, for obviously as you can see above there are several critical flaws -- probably the most important being that nobody is going to loan you from $100 million to $500 million unless you're Bill Gates or some lesser billionaire, or a publicly-traded corporation with lots of assets to seize if you default. Don't believe me? Just walk into your local major bank and tell them you would like to take out a $100 million loan; and don't mind that jacket they give you with the long sleeves, they're just being courteous. Moreover, you don't have to have much more than a 3rd grade level of mathematics to see that the numbers just don't add up.

Where scammers make their money is on the advance fees they earn helping suckers (mostly distressed small business owners) make the applications for the loans, which applications are usually made to some phony-baloney Antigua bank which is purportedly back by an equally phoney-baloney insurance company, such as the late International Depositors Insurance Corporation (IDIC) which was lately exposed to be a massive fraud.

Well, if it doesn't work and nobody's going to give you any money, how do the promoters make any money -- after all, their not getting their commissions either, right? Yes and no. If you've been keeping your eye on the promoter's commissions you've already been suckered, because that's not the point of this particular exercise. The real scam is:

BUYING THE BOOK THEY SELL YOU FOR $99 OR MORE WHICH TELLS YOU ABOUT SELF-LIQUIDATING LOANS AND THEN SCAMMING YOU FOR THE   APPLICATION FEE FOR THE LOAN.

This is the scam, but you'd have to be a REAL sucker to think that some bank was going to give you a loan for $100 million. Unfortunately, there apparently a few of these suckers around, paying their application fee for the loan and then sitting around sometimes for years waiting for the loan to fund.

This is just flat out criminal "advance fee" fraud and you should
contact your local law enforcement authorities immediately.

But what many of these people are after is merely the cost of the book, but they want that cost from as many people as will pay it to them. After all, they probably didn't pay anything for it (you can make this crap up about as easily as you can fill out somebody else's order form so that you can get the book and scam other people), and all their doing is photocopying the book at 10 cents per page and mailing it to you book-rate in exchange for your $99 bucks.

Want to have fun with these folks? Get their ordering mailing address, and send them a letter telling them that you loved the book and that you have successfully obtained a $500 million loan, that the money is sitting in your checking account, and that you need further, more detailed instructions on what to do with it!

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THE PAPER SOURCE -- Credited With Saving “Untold Numbers” From Being Cheated In the Biggest Advance Fee Fraud In History.