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High Yield Investment Programmes almost always contain common elements that the cautious person should recognize as "Red Flags" if solicited to participate and invest in one. While a programme may not demonstrate all of the items below, the presence of one or more of them should make you very nervous.
The deal structure is gratuitously complex.
Meaningless, inapplicable, or unnecessary transaction documents are involved.
"Offshore" transactions.
A lack of references, or unverifiable references regarding prior successful deals.
Advance fees.
The underlying deal, company, or borrower is not creditworthy.
Nutty business plans, e.g. diamond mines in Siberia.
Claims of secret Vatican involvement.
Name dropping without substantiation.
Foreign language documentation.
A "proprietary" financing technique.
Websites or promotional material that look impressive, but convey no real or verifiable information about the company or promoter.
Inability to provide proof of licensing, securities registration, or a corporate registration with licensing and regulatory agencies.
Consistently ambiguous language in documents and correspondence.
"Explanatory" letters that are inconsistent with documents provided.
The promoters provide increasingly creative reasons for delays. E.g. mail, currency exchange, differences in time zones.
Numerous unsuccessful applications, usually blamed on the lender, for various reasons, e.g. miscommunication, underwriters don't understand the deal.
Repeated requests for additional information or requirements from "third parties."
"Righteous" indignation and threats to pull out when called upon to provide explanations or references.
Threats to sue for "commissions earned", libel, or slander, due to the investor's complaints of lack of performance by the promoter.
Dont forget such wonderful English phrases like "fund your project" or terms like "barrister Dr.".
Disciple of the cross and champion in suffering
Immerse yourself into the kingdom of redemption
Pardon your mind through the chains of the divine
Make way, the shepherd of fire
Rat River Trapper wrote:High Yield Investment Programmes almost always contain common elements that the cautious person should recognize as "Red Flags" if solicited to participate and invest in one. While a programme may not demonstrate all of the items below, the presence of one or more of them should make you very nervous.
The deal structure is gratuitously complex.
Meaningless, inapplicable, or unnecessary transaction documents are involved.
"Offshore" transactions.
A lack of references, or unverifiable references regarding prior successful deals.
Advance fees.
The underlying deal, company, or borrower is not creditworthy.
Nutty business plans, e.g. diamond mines in Siberia.
Claims of secret Vatican involvement.
Name dropping without substantiation.
Foreign language documentation.
A "proprietary" financing technique.
Websites or promotional material that look impressive, but convey no real or verifiable information about the company or promoter.
Inability to provide proof of licensing, securities registration, or a corporate registration with licensing and regulatory agencies.
Consistently ambiguous language in documents and correspondence.
"Explanatory" letters that are inconsistent with documents provided.
The promoters provide increasingly creative reasons for delays. E.g. mail, currency exchange, differences in time zones.
Numerous unsuccessful applications, usually blamed on the lender, for various reasons, e.g. miscommunication, underwriters don't understand the deal.
Repeated requests for additional information or requirements from "third parties."
"Righteous" indignation and threats to pull out when called upon to provide explanations or references.
Threats to sue for "commissions earned", libel, or slander, due to the investor's complaints of lack of performance by the promoter.
WOW... That's a big list...
Useful information, thanks for the heads up!
But I have to say it's impressive that somebody is reading a posting from 2011.
"Yes Burnaby49, I do in fact believe all process servers are peace officers. I've good reason to believe so." Robert Menard in his May 28, 2015 video "Process Servers".
