These properties were all listed with realtors. I had to make my offer to the realtors and they would submit them to HUD. After purchasing about 6 properties, I got tired of having to work with a new realtor so I decided to contact one of the first agents I worked with to simply my purchasing pains because this agent, new my market, knew my tolerances, new my repair limits and understood my investment module.
This agent knew what I was looking for in the properties, the conditions, size etc. So rather than working with new agents each month, I now submitted all my deals directly throught this one agent simplifying the process.
Then something very interesting happened.

After several more purchased, my agent call me one Sunday and told me that I could just tell here over the phone which properties I was interested in and she would get my bids in to HUD every morning. She only asked that I place a $500.00 earnest money deposit with her per property. A few days later, I went into her office, paid her $2,000.00 signed 4 blank bid applications and a few other documents and left.

Though I didn’t realize it, I had put in place a system for bidding on Hud and VA  properties. I went on to purchase over 20 plus properties using this method. Although I didn’t realize it, I had put a system in place that covered all the essentials in advance. Systems are essential for getting things done correctly the first time.

I’ve sense become a system fanatic.
Typically, the systems I develope are created to solve a problem or to simplify essential process that can be predicted.
Here are a few of the systems I’ve created and developed over the years:

1. Loan Broker System - Created to simplify the complicated loan brokering process. This system was created out of pure frustration.
2. Property Loacting System - This system was created after being jurked around too many times by Realtors.
3. Lender Qualifying System- This system was created after a Lender stole $8k from me and didn’t provide the service I paid for.
4.  8 Week Debt Free System- This program was developed when I decided it was time for me to get 100% debt Free.
5.  Portfolio Financing System – This system was created to maximize my investing by purchasing multiple properties at once. To my surprice, I discovered that portfolios are easier to purchase than single properties.
6.  MAP Funding System – This system was developed when I was challenged by a local radio personality to place $100 Million in commercial loans in 30 day. This system was developed due to the predictibility of the programs.
7.  LITC Prospecting System- This system was created for the ease of entry into the market for locating commercial property investors.
8.  Property Management Prospecting System – This system was created in my quest to locate highly qualified refinance clients.
9.  Home Business System- This system was created to my online business and to create predictable income streams.
10. Arbitrage Financing System – This system was created to illustrate how you really can do 1 deal ,1 time and earn $1 Million Dollars. This is by far my most treasured system. I know of no other system, or program that can generate the results that this system does. This is the system I am currently using to acquire properties and to generate a lot of tax free income. Earlier in the year I did a soft launch of this system and then canceled the launch because it was easier to actually implement the system . I may share it in it’s entirety soon.
We have been able to average a 10-15% Tax Free Rebate at closing with this system.  This system is very very powerful and requires the ability to analyze and size up a lot of different situation at once. But when it’s mastered, it is the ultimate inside secret for creating massive tax free profits and true wealth!

  Introducing My Commercial Property Financing System

This system was developed to address a problem that a lot of my students were facing. Securing financing for their acquisition or their clients acquisitions. This system took over 8 months to perfect. Granted, I’ve used portions of this system for the past 5 years. Now all of the pieces are inplace and it is a complete Commercial Property Financing System. This system is what every serious investor and financier must have.
You can see the official launch page and a demo of this system by clicking here.

Now you can see what system can do and why you need one. Especially a Commercial Property Financing System
 Check it out here Get my point!

 Check out these definitions:
Systems is defined as: “whole compounded of several parts or members, system”, literary “composition”     a set of interacting or interdependent components forming an integrated whole. A system is a set of elements and relationships which are different from relationships of the set or its elements to other elements or sets.

Definition of Implementation: Implementation is the realization of an application, or execution of a plan, idea, model, design, specification, standard, algorithm, or policy. .. notice that the word “mentation” which is a root of the word mental is a part of this word. The implication here is that there is some mental effort involved.
Mentation Means:   the process of using your mind to consider something carefully; “thinking always made him frown”; “she paused for thought”.  

Finally, A Complete Solution !

After many months and hundreds of hours, we now offering a complete commercial Financing And Investing Home Business System.
This system includes the following:

1. Commercial Underwriting Software
2. Corporate Web site
3. Membership to Private Members Training Site
4. Deal Share And JV Program
5. Assistance With Your First Underwriting Deal
6. Marketing Templates

Learn More  Here

When it’s all said and done, it all  boilds down to having the right information at the right time.
The Right property, the right price, the right seller, the right buyer the right financing at the right time.

The name of the game changes from investing to having access to Superior Information.

The REITS have it, the Investment Bankers have it, the Big Realty firms have it, the Insurance companies have it, and now you can have it also!
What is the big it!
They all have access to information that simply isn’t available to the general public. And access to this information gives them a major advantage in the market.

Now you can gain access to this same information without the expense.

This Truly Is The Ultimate Commercial Financing And Investing Game Changer.!

Listen to this Game Changing message ! 

In such instances, businesses have been advised that they can obtain a business loan at 4% interest; however, the business must supply 30% of the money required to complete the project. During the time required to assess and fund the loan, investors are asked to agree to non-disclosure.

They can issue impressive documentation in the form of an offering memorandum which is a disclosure document used in certain private placement transactions.

Frequently, they say your advance fee money has been sent by an “attorney” to a “Master Collateral Holder” on the basis of receiving a “Funding Commitment”, “Letter of Intent” or some other document that will satisfy the requirements of the agreement. Your money, which the fraudster claims is held safely in an escrow account, is actually controlled by the fraudster.

The reality for those expecting to obtain a loan through a “Prime Bank Investment” program is that they are, in fact, already victims of an advance fee fraud.

High Risk Loans

A phony loan scheme that was operated from Oklahoma City, Norman and Boulder, Colo., from May 1997 to June 2000 defrauded 1,200 people nationwide out of $1.8 million.

Randall G. Morse, 42 and Sarah N. Grantham, are accused of falsely offering to help financially distressed people and businesses in Colorado and Oklahoma obtain financing in return for an up-front fee.

Morse’s companies used the names The National Funding Source Inc., doing business as The Business Solution, U.S. Financial & Loan Co., National Capital Resources Corp. and Commercial Corporate Finance U.S.A. Inc.

The alleged victims were in several states and included a hardware store, an oil company, a mortgage company, a veterinary clinic, a landscape design firm and a health club. Many needed loans to keep operating or faced the loss of their property because they owed back taxes.

The people were required to pay advance fees ranging from $395 to $6,750. Only 20 of 1,220 individuals and companies that paid advance fees actually received financing.

Morse and his girlfriend, Grantham, allegedly spent the advance fees on themselves buying a $700,000 house, a $91,000 1998 Hummer, a $66,000 1996 Hummer, a $23,000 1998 Harley Davidson motorcycle and a $3,300 big screen TV.

In addition, they signed a lease-purchase agreement for a $259,000 yacht, leased an $80,000 2000 Porsche Cabriolet, spent $8,000 on a birthday celebration for Grantham at Aspen’s Little Nell Hotel and spent at least $12,000 at the MGM Casino in Las Vegas.

Morse is charged with 52 counts of mail fraud, wire fraud, money laundering, tax evasion, conspiracy to defraud the government, loan fraud and tampering with a witness.

Grantham, who assisted authorities, was charged separately without a grand jury indictment and faces one count of conspiracy to defraud the United States and one count of loan fraud.

“Ubupupu bwafulisha” (There is too much stealing).

In Zambia it is reported that US$6 million meant for the purchase of maize has gone missing in a deal between President Chiluba’s economic adviser Donald Chanda and Carlington Sales Company of Canada. Carlington, owned by Alexandre Legault has recently been the focus of a news show investigative inquiry on CBC’s Disclosure program.

There is was stated that Carlington is an elaborate advance fee fraud operation which presents itself as a major commodity exporter but fails to ever make shipments after payment. A former employee explained how, in one case, grocery store rice was simply emptied into an unmarked plastic bag to be sent to potential buyers as a reassuring sample of quality.

Carlington Sales Canada Corporation’s Foreign Agents

Ben-Menashe, Ari
Fraser, Herbert
Hooper, Peter

According to the media, Carlington Sales filed bankruptcy last year after the Government of Zambia and the British lawyers were getting close to seize everything.

Ever the entrepreneurs, Alex Legault and Ari Ben-Menashe immediately started another company ( Dickens & Madson, 310, avenue Victoria , Westmount, QC H3Z 2M9 , (514) 483-3344 ) .

Things got ugly very quickly with the RCMP investigating Ben-Menashe over the Tsvangirai recording. Meanwhile, Legault had his own set of troubles.

Alex Legault is wanted in Louisiana and Florida for some ponzi-scams he had set up in the past. He was sentenced to a total of 189 years of jail and the FBI has asked the RCMP to extradite him back to the US .

Legault, having claimed refugee status 13 years ago was protected by Canadian law and was never extradited. Furthermore, he fathered a huge litter of children hoping that would help his case. CBC called it “immigration by procreation” !

Then a recent court ruling changed everything. Immigration Canada issued a deportation order last June and Legault was supposed to leave the country for a destination of his choice. He failed to show up on this date and is now a full blown fugitive, both in Canada and in the US .

Several companies are suing them for non delivery of goods and refusal to refund the deposit including the case of Mr. Nigel Whitely, a Scottish businessman, owner of Merchants International (Edinburgh, Scotland ). Whitely signed a contract for rice delivery to Ghana and forwarded US$250,000 as a deposit.

With enough evidence to prove that this was outright fraud the lawyers managed to force Ben-Menashe into refunding Mr. Whitely. Others continue to fight for restitution.

To this day, he has never appeared in a Canadian court for financial fraud charges since he always settles out of court. The only time he has ever had to go to court was for criminal charges pressed by his wife and mother-in-law for assault and battery.

She evidently found out that her husband wasn’t a real successful businessman, but rather a big time crook, so she kicked him out of their $3,500,000 mansion in Westmount. He apparently didn’t appreciate the expulsion.

Loan scams targeting small businesses

By JONATHAN D. EPSTEIN
News Business Reporter – Buffalonews.com

Jody Fox had big hopes to open her gift shop, until she found Empire State Financial Services.

Responding to a classified ad, the Angola woman applied for a small business loan from the New York company, but was told she’d have to pay a security deposit as a guaranty to the lender’s insurer in Ontario.

So she wired the money via Western Union, and waited for a loan that never came.

Now, she can’t reach anyone at the company and has learned that the insurer doesn’t exist. So instead of having the money she needed to start the business, Fox is out more than $2,000.

“Everybody tells me I’ve been scammed, and good luck getting my money back,” said Fox, 39.

Fox is a victim of a lending fraud that takes aim at entrepreneurs eager to start their business but desperate for money. It’s a version of a common consumer scam known as advanced-fee loans in which victims pay upfront for a service or promised benefit – like a credit card – that they never receive. The scam is getting renewed attention from state officials in the form of a warning from the state Consumer Protection Board after Fox and another Western New York woman fell victim.

The typical advanced-fee scam often begins with a person responding to a classified ad in a newspaper, magazine, direct mail, the Internet, radio or TV, and then calling a toll-free or 900 number. The ads usually involve promised consumer loans or products, but have also targeted small businesses. Victims are told to wire or overnight several hundred or several thousand dollars to a lender or insurer to guarantee the loan, but end up losing their money and not getting anything in return.

It is illegal under federal law for a lender or broker doing business by phone to promise a loan and ask for payment before they deliver it. Legitimate lenders may require payments of application, appraisal or credit report fees, but usually not before an application is completed, according to the U.S. Federal Trade Commission. Such fees also are typically small.

Fraud saps hundreds of millions of dollars every year from victims nationwide, especially the elderly and those with bad credit. The array of scams is constantly growing as criminals come up with new methods of deception. Common scams include auction fraud, sweepstakes and foreign lottery schemes, deceptive business fraud and work-at-home scams.

Last year, the FTC’s Consumer Sentinel database recorded 517,740 complaints of fraud and identity theft – including 292 in the Buffalo area – and total losses of $437 million. Victims paid an average of $1,868 nationally and a median of $228 – meaning half paid more and half paid less.

In the cases of Fox and another local woman, they responded to newspaper ads reading: “Starting a small business? Need a consultant or capital? We can help!” The ads featured one of two toll-free numbers for a company using the name Empire State Financial Services or Crown Financial in New York City.

Fox had been seeking a loan but a bankruptcy on her credit record was hurting her until she was approved by Empire State. But the lender told her to wire $1,985, plus a $119 fee, to a person in Canada representing Oxford Insurance and Guarantors of Scarborough, Ont.

She did so, and received a contract in return stating that she would receive the loan within 48 hours. When the loan didn’t come, she called back and was told that the insurance company needed another $500 because of her credit.

Suspicious, she took the contract back to her lawyer, who told her that no legitimate lender would ask for money upfront. She contacted Scarborough police, who found that no insurer exists at the Canadian address she had.

Since then, she has submitted complaints to federal, state and Canadian provincial regulators and lawmakers, seeking action to get her money back. But the size of her loss is too small for the Federal Bureau of Investigation to get involved – the agency generally has a $5,000 threshold. And she learned that New York state law doesn’t subject business finance companies to the same regulation as consumer finance firms.

Authorities have learned that the address the lender or broker used in New York is actually the site of an elementary school and administrative office. And Fox said the Royal Canadian Mounted Police and Ontario Provincial Police have at least nine other complaints against the same company on file since mid-April.

“We know that these people are out there trying to take advantage of people,” said Jason Okamura, spokesman for the Ontario Ministry of Consumer and Business Services in Toronto, which has received a complaint about Empire State Financial and is working with U.S. authorities.

The FTC and other U.S. and Canadian law enforcement agencies have shut down and prosecuted a number of scam operators in the last decade. They have even been able to refund money to victims. But that’s only if the perpetrators are found.

Already, all the phone numbers associated with the scam that Fox fell prey to are either disconnected or lead to voicemails that are not set up. Recorded voices are in both French and English, with Canadian accents, and victims’ caller IDs have revealed Ontario phone numbers.

“The CPB is working with U.S. and Canadian agencies to find the people behind this scam,” said Consumer Protection Board chairwoman Teresa A. Santiago in a press release announcing a statewide alert. “These con artists have already changed names and phone numbers and with today’s alert, they may soon switch to another name.”

Meanwhile, the board contacted the newspapers that printed the ad – including The Buffalo News – and all agreed to stop running it.

The Buffalo News requires all new ads to be approved by a supervisor. Financial companies must provide proof of registration with the state banking department, and the paper attempts to confirm contact information via the telephone and Internet.

Santiago said the scam shows the importance of investigating a company before sending money anywhere, especially to a foreign country. “Newspapers try to spot scams, but they’re not always able to block these ads,” Santiago said in the press release. “Just because an ad appears in a newspaper or on a Web site, that doesn’t necessarily mean it’s been fully screened or its claims verified.”

Advanced-fee scams represent just 4 percent of the fraud complaints to the FTC last year, but they are getting increasing attention. The FTC in mid-April forced six New York and New Jersey telemarketing companies and their principal to pay $11.8 million and stop marketing advance-fee credit cards. Victims had paid between $219.99 and $289 for a Visa or MasterCard they never got.

While consumer scams are the most publicized, businesses also have been ripped off. Companies have charged $5,000 upfront to help register patents that they never receive or for patents that are not legal and enforceable. Or people have paid $2,000 to $3,000 to be a franchisee for a product or service, but never see results, products or assistance.

“Anything that looks that good is probably not good. You must look at it with a jaundiced eye,” said Frank Sciortino, district director of the U.S. Small Business Administration’s Buffalo office.

Your best friend, knowing you can keep a secret, introduces you to his financial advisor who agrees, after some convincing, to let you in on a special:

which deals in the high-finance world of trading in:

using one or more of the following terms

How Prime Bank Guarantee Scams Work

They offer you extremely high yields in a relatively short period of time through access to “bank guarantees” which they say they can buy at a discount and sell shortly thereafter at an enormous premium.

You are told that institutions like pension funds stand ready to buy “Prime Bank letters of credit” from large banks, with purchases of over $100 million affording the highest return, but because regulatory restrictions prevent the banks from selling directly to institutional investors a middle man is required to handle the transaction at a contractually prearranged profit.

The big banks around the world supposedly lend each other money by issuing notes with face values of $100 million or more. These notes can be resold a number of times at a discount (profit) to other lenders so that the original issuer can reap a handsome profit in a relatively short time. The term of the notes vary from 30 days to a year or more.

As an insider they are able to buy below par at, say 77 cents then sell for 79 cents on a continuous basis. For example, if $10 million worth of “bank guarantees” can be sold at about a two percent profit on ten separate occasions, or “traunches,” you will receive a 20% profit in about thirty days.

An Exclusive Club

They say that “the Rothchilds and the Rockefellers set up the process over fifty years ago during the creation of the Marshall Plan as a means of utilizing Eurodollars which were beginning to flow overseas, and to fund “off-the-balance-sheet” rebuilding projects in developing countries.”

They further explain: “The prime banks have generally dealt only with the world’s wealthiest, such as the Saudis or the top financiers on Wall Street, in London or Geneva but competition has opened it up.” “Still, only big corporations, foreign banks and ultra-wealthy investors know about the process.”

They divulge that a “Saudi oil sheik wants to invest seven billion dollars” and “the Onassis family wants to invest $250 million dollars” in this very offering which is “based on an arrangement among various governments to stabilize the Eurodollar money supply using a handful of picked traders.”

You are told not to bother seeking professional advice because the information is reserved only for those who participate in the program which is ‘by invitation only’. You are told that you are one of only a few people who will qualify in this undertaking along with “an elite group of investors with access to extremely valuable and highly confidential information.”

The Magic of Pooling

The minimum investment can be as high as $10,000,000, either from an individual, or a group of individuals who pool their smaller investments. It’s this pooling of investors’ funds which gives you the resources to purchase “prime bank” financial instruments.

Brokers get involved to help small investors pool their money to build it up to the minimum $10 to $100 million. You are also told that potential annual profits of 100% or more are possible with little risk and you could yield up to five times your money in two months, with such returns guaranteed.

For Your Eyes Only

They convince you to transfer assets or borrow the money to invest in the program after signing special non-disclosure and non-circumvention agreements which prevent you from talking about the deal with anyone, including lawyers or financial advisors because you are joining “a privileged group getting in on a very exclusive investment which relies on secrecy.”

All transactions are to be kept strictly confidential by all parties and for this reason no client references will be available. In an effort to lull you into inaction, they emphasize that the market for these instruments is so secret that the institutions involved and even regulatory agencies will deny the existence of the program if asked.

You risk being permanently expelled from participating in these transactions along with being hit with a massive bank-backed breach of contract lawsuit should you attempt to independently investigate the offering.

“Keep this information secret. If anyone finds out I am doing this for you, the deal is off.”

You are also told not to phone the bank listed on the documents because they cannot acknowledge the existence of such an arrangement unless you are the principle investor ( $10 million on deposit ) and besides, the process is so restricted that even the low level staff, such as bank managers, wouldn’t know about it even if you did ask.

He says that the returns offered are considerably higher than are available under normal market conditions and, therefore, if this activity was not kept secret it could not exist for the simple reason that it would make it very difficult for governments to fund treasury securities or for banks to offer conventional instruments such as CDs and GIC’s paying far less.

“If it was widely known about, people wouldn’t settle for much lower returns. They would seek out this instrument. So the only way it can be handled is on a very private basis where people make the application in highly structured ways and if allowed to participate they get access to a direct contract.”

Proof of Authenticity

The notes are shown to be issued and guaranteed by large, well-known international banks like Barclays, Lloyds Bank, Chase Manhattan and Deutsche Bank.

When you ask why the banks offer the paper so cheaply they note that there are several factors involved such as:

They tell you that they have no interest in stealing your money because they make enough from the deal already and want to have you participate in the next program so you can both get rich together.

Many exotic sounding banking terms are used which are confusing to all but the professional banker or investor. Soon you feel too self-conscious and ignorant to ask further questions. As the investment appears to involve overly complex loan funding mechanisms this makes even a questionable investment appear worthwhile.

When you ask for references you are shown high-quality documents emanating from institutions such as the U.S. Federal Reserve, the IMF, the World Bank, the Bank of England and even the Queen of England to win your confidence but, with the secrecy provisions, there is no way to check their authenticity.

They even question “your” integrity when they suggest you might have to have a background check done by Scotland Yard or Interpol to ensure that your funds are not from money laundering or drug sources.

They may offer the return of your investment in “a year and a day” and produce complex forms required by the International Chamber of Commerce (ICC) under the specific guidelines known as ICC 500.

The U.S. government issued its first warning about prime bank note frauds in 1993, but the publication of the book The Creature From Jekyll Island in 1994 by G. Edward Griffin continues to fuel new investor interest in prime bank notes. The book, which promoters of prime bank notes urge skeptics to read, describes a labyrinth of secret transactions that enable the Federal Reserve system, governments and international banks to control the U.S. and world economies.

As Secure As They Come

You may be told that as an investor, and not a principle (you don’t have $10 million), you either have no personal security or that there is no need to worry because every penny is fully secured by a Letter of Credit, a bank-endorsed guarantee or other guaranteed bank certificate backed by the world’s top or “prime banks.” The word prime is synonymous with the phrase “top fifty world banks” and is used to refer to financial institutions of high repute and financial soundness.

They could also say it is both risk-free and sanctioned by the International Monetary Fund, that it has an “IMF Number”, an “IMF Country Registration Number,” or an “IMF Approval Number for Projects.”

The Charity Angle

You may be told that the profits are so vast that you can’t expect to retain all the money because the Federal Reserve expects you to sponsor humanitarian projects in the Third World. They will often have set up the infrastructure and name for this benevolent organization which is simply another layer of deception to add complexity and an aura of respectability to the whole operation and to counterbalance any twinges of guilt you might have when feelings of greed pass over you.

You are then shown a full-colour glossy brochure complete with pictures of crying malnourished children, maps and graphs and are then asked to pick your favourite amongst such worthy objectives as irrigation projects, cornea transplants for the blind or Nicaraguan housing developments for the poor.

Save Taxes Too!

You are intrigued when told that it is possible for a shrewd investor to utilize a tax haven country, with their help, so that no tax need be paid on your phenomenal returns.

They encourage you to send your money to a foreign bank, where it is eventually transferred to an offshore account that is solely with in their control. Should you wish to make any trouble they will threaten to ruin your credit history with their massive, but non-existent, resources.

It Sounds Good

You are offered an investment in Global Investments Networks’ “High Yield International Private Investment Program”. The written materials state that the investment offers an excellent yield of 3% interest per month for a twelve-month period, with very little risk.

They include illustrations of the compounded return that can be achieved at this rate for an investment of $10,000 and multiples of $10,000. Your money is to be managed through a cooperative agreement between a program manager and a “licensed chartered bank.”

The funds will be deposited into a “blocked account” at the bank. The funds are secured by a guarantee issued by a “Top Money Center Bank” and are to be used for trading bank debentures which are regulated by the International Chamber of Commerce. The materials characterize these programs as “highly privileged insider opportunities.”

The materials do not identify the principals in Global Investments Network Ltd., their track record, the identity of the program manager, the bank where the funds will be deposited, the identity of the “guarantee” bank, what role or compensation Global is to receive, or what basis they have for the claim to be able to pay investors 3% per month.

The materials do include instructions on how to invest, a letter of intent and a private placement application, as well as a form to verify that you have not been convicted of a felony or involved in any white collar crimes, terrorist activities, money laundering or bank fraud.

These are to be completed by you and returned, together with proof of funds on deposit in a financial institution after which they promise to quickly relieve you of your money.

continue QuckTour

A Big One That Got Away

After a career which started as a registered rep in a small securities firm, a 69 year old MBA graduate eventually started his own firm which specialized in private placements and limited partnerships. From here he tried to get representatives at John Hancock Life Insurance Company in Boston to invest in certain “prime bank guarantees” and “standby letters of credit”.

He claimed in correspondence that through these investment vehicles John Hancock would be guaranteed unusually high returns by purchasing credit instruments issued by the worlds top 100 banks at a deep discount, and then reselling them in a secondary market at a profit.

He stated that the instruments were zero-interest Standby Letters of Credit (SLCs) issued for one  year and a day, and Prime Bank Guarantees (PBGs) issued for ten years and a day, and bearing interest at the rate of 7.5%, payable annually, in arrears.

He claimed that bankers have been attracted to the use of these off-balance sheet instruments because of regulatory pressure to improve capital ratios, and because they offer a way to improve the rate of return earned on their assets. Further, he stated that while their issuance was unregulated, the instruments are standardized under rules of the International Chamber of Commerce.

He offered investment packages, or roll programs, with various rates of return and minimum investment requirements of millions, to hundreds of millions, of dollars. After the first three letters had been received, John Hancock staff began questioning the legitimacy of the instruments offered and asked for verification from him.

He explained in subsequent correspondence that the instruments are not well known because they are not required to be registered; that transactions are private, almost entirely bank-to-bank; and there are strictures against solicitation.

He encouraged John Hancock representatives to learn about the instruments by requesting from their bank a letter confirming the company’s availability of funds to engage in such investments. In later correspondence he said he tried to contact the banks used by John Hancock, but that “because of the extreme privacy of the transactions, and the great confidentiality with which all parties treat their relationships with all other parties, it has been slow and difficult going.”

With one memorandum, he purported to attach as proof of the existence of PBGs an agent’s quote on $250 billion in PBGs issued by top 25 European banks.

Eventually John Hancock representatives contacted Morgan, Lehman Brothers, Goldman Sachs, and the London office of IBCA, John Hancock’s foreign bank rating agency, and received responses that confirmed that the investment scheme was likely a scam. They continued their investigation and received confirmation that the instruments were of a type found in an internationally recognized, fraudulent scheme.

Confronted with these facts the promoter stated that he believed that the securities were legitimate, and did not know that the securities did not exist. He also believed that he was to receive a commission, after the successful sale of prime bank securities, from the issuer or seller of the securities, rather than John Hancock.

You Don’t Even Look Japanese

Even after being advised by his employer that Certificates A-1263 and A-1266, purportedly representing Japanese Yen Bonds valued at approximately $1.6 billion, appeared to be a scam, one broker contacted officials at Prudential Securities for the purpose of depositing the certificates for eventual sale to the public, still of the opinion that his employer did not understand these instruments.

Prudential themselves established that the certificates were fraudulent but he still arranged a meeting in New York in an unlawful effort to deposit them.

Clinging to his delusion, he later even dismissed the sworn deposition testimony of a longtime deputy of the Japanese Ministry of Finance (which stated that they were counterfeit and fictitious), because he was not the “actual” Minister of Finance.

An Attorney With Power

Continental Capital Markets, Inc. who claim to be the lawyers and trustees of several large trusts, offers an investment program in which they say that your money will be used to trade in Prime Bank instruments and discounted letters of credit. They say that they have the ability to trade the instruments at the prime banks of the world, buying them at a discount, and then selling them at a guaranteed profit. They tell you that trading in such instruments will double your money in a year’s time without ever putting your money at risk.

They encourage you to travel to their intermediaries’ lavish, but temporarily rented, suite of offices in London or Switzerland where cigars and brandy are offered all around. You are excited to be a part of this mysterious and affluent world of international finance as they explain how they are successfully trading millions of dollars in such instruments.

You sign a power of attorney which provides that at all times either your money or documents evidencing the purchase of these instruments will be in your account. The powers of attorney are to give them access to the money solely for the purchase of the investment instruments. They tell you that your money is safe because the account is in your name and the money can only be withdrawn in order to purchase the Prime Bank instruments.

Despite the provisions of the powers of attorney limiting its use, they withdraw your money almost as soon as it is deposited. They also arrange to have the bank send the account statements to them, rather than to you, so as to hide from you the fact that they have taken the money out of your account.

They use some of the funds to make payments back to you as interest every week or two representing the profits from trades, in order to lull you into believing that your investments are safe while they lure others into the scheme with your enthusiastic help.

The Light Of Day

The sad part is that you may not fully appreciate your true fate until years later. The brokers will keep the dream alive by saying that the profits have been reinvested and may even attempt to lure you into another scheme before you realize what you are into.

No Poor Victims Allowed

Con artists reach investors in different ways; over the phone, in person and via the Internet. One company sought investors with a web offering which referred to Bank Debenture Trading programs under the heading: “An Introduction to the International Chamber of Commerce – How the Rich Make Money.”

Even group seminars are arranged for savvy investors at local hotels and convention centers where investors are told their minimum investment requirements of $25,000 will yield $1.9 million in two years.

Many prime bank scam victims are senior citizens. With interest rates at 30-year lows and the stock market setting record highs, many investors, especially the elderly who favour interest and dividend income, are vulnerable to bogus prime bank investments that promise “risk free” annual returns of 20% to 200% or more.

Individuals are not the only victims however. County treasurers and small town financial officers are considered easy prey. In New Mexico, the city of Clovis lost $3.5 million in a prime bank scheme. Victims of a $600 million prime bank fraud involving securities purportedly issued by Banka Bohemia A.S., a bank located in Prague, Czech Republic, included charitable organizations, municipalities, and other institutional investors.

For example, the National Council of Churches of Christ, a not-for-profit charitable organization, paid $7.98 million to purchase $13.2 million face value of “prime bank guarantees” purportedly issued by Banka Bohemia. The Chicago Housing Authority’s Benefit Plan invested at least $12.5 million in a purported “Roll Program.”

One fictitious trading program which involved the pooling of investor funds to purchase and resell deeply discounted bank instruments at a profit sold at least $6,239,000 worth of hot air to at least four groups of investors, including an Ecuadorian charity for underprivileged girls.

He lured investors into the program by saying the investments would be risk-free and would generate tremendous profits ranging from 20% to 100% at least every ten international banking days. Regardless of his “personal guarantee” they lost all of their principal.

The simple rule of investing is the higher the possible profit the higher the risk. If anyone claims that a high yield investment has no risk, don’t believe it.

There are no risk-free returns of 18%; not with 30-year Treasury bonds yielding 5% today but there will always be a group of investors who insist on believing that there are “secret investments” which pay high returns with no risk.

While foreign banks do use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

The International Chamber of Commerce makes rules for the conduct of trade, among them the uniform Customs and Practice for Documentary Credits (UCP), whose current version is known as UCP 500, but it does not issue or endorse any financial instruments that can be traded, nor does it provide guarantees for such instruments.

The IMF is an intergovernmental organization whose financial transactions and operations are carried out directly with its member countries and only through a fiscal agency designated by each member for this purpose (such as the member’s Central Bank or its Ministry of Finance). The IMF does not operate through other agents and it does not endorse the activities of any bank, financial institution, or other public or private agency.

The Office of the Comptroller of the Currency which oversees national banks sees an increasing volume of bogus investment proposals being promoted towards banks and municipalities to leverage investment portfolios through some type of secondary market activity.

These programs purport to generate high yields – up to 10% or more per month – at no risk to the original investment because they are alleged to be under management or the personal supervision of the Federal Reserve Bank and the chairman of its board.

These programs may utilize deposit, trust, or safekeeping accounts at major financial institutions and although they purport to remain under the investor’s control at all times, this is not assured because of ambiguous working, program changes, or other seemingly insignificant events that provide opportunities for access by other than the institutions authorized employees.

How Big Is Big?

According to the International Chamber of Commerce’s commercial crime bureau, this type of scam involves $10 million U.S. daily in North America alone. They believe that the millions of dollars in losses reported every year represent only 10% of the total.

It is a crime which flourishes particularly strongly in today’s global markets, with its voracious appetite for capital. The ease and speed with which documents and vast sums of money can be exchanged electronically makes vigilance all the more necessary.

There Must Be A Law

A number of prime bank securities fraud cases have been prosecuted by the SEC and federal criminal authorities. For example, one group which raised at least $10 million from a nonprofit corporation through the sale of prime bank notes were subsequently charged with wire fraud, money laundering and conspiracy, with sentences ranging from 11 to 19 years.

Prime bank fraud can currently be prosecuted under a variety of federal criminal statutes such as mail fraud (18 U.S.C. 1341), wire fraud (18 U.S.C. 1343) and conspiracy (18 U.S.C. 371).

Should you require more information on this topic the SEC has a special section devoted to Prime Bank Scams.

“Say you want to make $1 million, what you do is place about $35,000 or 3.5% in your account. That goes to The Bank of Cyprus where you are getting a corporate loan guarantee from them for $1 million with the 3.5% as security and collateral.”

“That gets presented to the Deutchse Bank from the Bank of Cyprus. Deutchse Bank then releases into your account about 85% of the money. Then what you do is trade for 6 months, move money away over that time, then go into liquidation.”

Does what I am saying make any sense. I would love to have your feedback on this.

Rueben 02/28/02

Client offers to come into the financial institution wanting to buy $500 million Medium term discount notes (issued by various institutions, including, ABN AMRO, Deutsche Bank and Anker Bank ) in lots of $100 million each at a price of 82% if face value.

The offer continues to state that the market value for these instruments is 95% of face value and therefore offers no risk to the Company purchasing the notes or to the lending institution. Transactions are to be done via a SWIFT Communication. Similar request may involve US Treasury medium term notes.

Paperwork falsely references Wachovia specifically and other prominent banks and broker-dealers.

These are posed as international deals and the names that are mentioned in the communication include:

Trijar Trading Company
Safekeeping Investment Trust
Janus LLC
Michael Cottrell (Mr. Cottrell may present an Australian passport)
Vail W. Pischke
Manchester Capital Co. LTD
John C. Bright, Q.C. (Canadian)
Robert Hryniak (Canadian)

After over 1200 submission, we closed the site and began the process of selecting the next generation of  Top Gun Students.
I was so overwhelmed with the responsed that I handed them off to several of my trusted friends to assist with making the selections.

The quality of the applicants were nothing shorter than exceptional. Awesome !
So we decided to expand the scholarship program beyond our original 4.
Quality people are priceless…..

Find out tomorrow night at this special webinar.

https://www1.gotomeeting.com/register/868472992

PS 1 .Are you Still Not A Member Of The Best Commercial Financing Program Available ?

Here’s another opportunity for you to join our private members site before our next price increase.
Visit : http://www.topgunworkshops.net/signupnow  

Or Purchase Our Home Study Course and get a Free  30 Day membership.

Visit here: http://www.financingdvds.com

If you haven’t watched the videos yet, I encourage you to
do so now before they are removed, here’s the link again.
Commercial Financing Academy

The Commercial Short Sale Videos were released as part of
a marketing promotion for our New Commercial Financing Academy.

We felt that one of the best ways to describe the training is to share
with you some of the content from the actual training agenda.

An we wanted this to be Free content that had real value. As you can see from the
Commercial Short Sale Videos, the content is extremely valuable provided you
implement what is shared.

What is the Commercial Financing Academy ?
The Academy training is a comprehensive training platform for
mastering the “Inside Secrets To Commercial Financing And Investing.

At the advance membership level, each member will be assigned a
personal coach and mentor for the purpose of assisting and guiding
the member through the process of generating at least $200k
Tax Free from their first deal.

The Goal of the Academy is for assist all of it’s members in the process of earning at least
$1,000,000.00 from no more than 2 transactions.

Upon completion of these objectives, each member will be certified by the Academy as
Certified Commercial Financier. This certification will afford the members numerous
Joint Venture opportunities and access to private financing and other opportunities.

The Members are encouraged to follow the direction and advice of their coaches and not
to lose focus of the Academy’s agenda. “To Create 20 Cash Millionaires over a 12 Month” period.

There are 3 membership levels:

1. Remote Video Training Level
2. Live Personal Group Coaching And Mentoring Level – Limited to 50
3. Joint Venture Partner Level. – Limited to 10 Members

There will be no monthly payment options.

We’ll reveal more about these options in the videos to come
so be sure to watch all the videos.

Lastly, this is an elite training program and will only be opened to
50 Enrollees.

Because we will be working very closely with inside sources and resources, all
members will be required to execute the following documents:

1. Confidentiality Agreement-Strictly Enforced

2. No-Disclosure Agreement -Strictly Enforced

3. Non- Compete Agreement-Strictly Enforced

4. Personal Interview- Mandatory

This program isn’t something you can just pay and get access to.
You must qualify and meet our Guidelines.

This means that when our shopping cart is open,
we reserve the right to refund anyone for any reason.

Be on the watch for our next email.

And be sure to post your comments about each video for a chance to receive a
full scholarship into this Academy.

Sign up now and get something that can make a real difference in your life before
I restore the price to $149.00 per month. Sign up now !.
http://www.financingdvds.com

Durante’ Parks
“Commercial Short Sale Wizard”

I’m really amazed at the response I’ve received  to the Commercial Short Sale Videos.
Actually, these are hard core “Commercial Paper Capers” on steroids….

This is the only system you need to master to get very wealthy FAST.
It contains all the key pieces…..

1. Solves a BIG problem that most investors have.
2. Doesn’t require much cash.
3. Can be done with 1 % down or even less.
4. Require no credit.
5. Big profits FAST!!!

If  you’ve watched any those video, do me a favor and tell me what you got out of the videos.

I’m having second thoughts about launching a new site.
I’m considering  scrapping the Academy and taking a year or 2 off.
What do you recommend I do?

Here’s what I need to know.

1. If you watched the Commercial Short Sale Videos, how did you like them?

2. What did you like about them?

3. How has the information effected you?

4. What other videos would you like to see or what other “problem solving products would you like”?

Be as detailed as possible….. I’m up to something….. BIG again…..

Talk back t me , I’m listening!

The Million Dollar March Was More Like A Walk!

Now For The Million Dollar Dash!

I’ve really enjoyed sharing the Commercial Short Sale System with you over the pass few weeks.
This training was a major departure for the scheduled training but I was really compelled to share with the Top Gun Members.
This program illustrates the importance of mastering the core training program in the Top Gun Workshop.

When all the pieces are in place, you now see the power of what you can achieve.
Each of you can build your own “Commercial Short Sale Machine” by simply putting the core systems in place.

It isn’t difficult to do but is does require some effort and time to set up.

The Challenges We Faced

The challenges were numerous. But there were a few principles that consistently worked. They were:

1. The “Counter Intuitive Thinking Concept” .

2. The importance of “building Solid And Strong Relationships” fast.

Although we were able to get the entire system up and running in 4 weeks, there were some challenges and hurdles that we had to overcome. These were:

A. Getting pass the gate keepers

B. Finding the right person

C. One Realtor refused to submit our property offers because it didn’t contain his 3% commission.

D. Bankers that denied they even had properties.

E. Realtor claiming to have REO properties when they didn’t have any at all.

Was It Worth It?

Let’s add it all up !

1.We have a new banking relationship with a new bank.

2. We have access to over 300 properties access to $20Million dollars in commercial properties.
 
3.We will flip 3 to our pre-qualified buyers and keep 1.

4. Total net profits will be in excess of $3.5 Million Dollars

All in all I would have say it was well worth it!

Here’s 1 of 4 deals I found at the Bank!

Property A:
176 units, 58% Occupies, Appraised Value : $5.5M  Mortgage Balance $8.5M
I desire to purchase the mortgage rather than the property.

Mortgage purchase price: $2.5M

I elected to contact the owners and to offer them new financing at 70% of the appraised value:$5.9M
The balance due me is  $8.5M Loan Balance
New First Mortgage:     $3.8M  70% Of
Pay Off My Loan :       -$1.3M
Net Profits :               $2.5M

Balance Due On My Note $8.5M – $3.8M =  $ 4.4M
I could forgive the balance but I elected to take the balance on a second mortgage at 8% on 30/60 term plus a 20% equity position plus a board seat….

I will discount the note buy 50% once the property is stabilized.

I took the equity so I can have some influence over getting the property stabilized
and to have access to see how the proceeds are being used.
Stock holders have access to the books.

I had no desire to foreclose on this property. It was easier to cut a deal with the current owner
and trigger a payoff of my note….

My last option would be to flip the property…

I have 3 such transactions from 1 bank visit.
No Big Deal to do, just good numbers!

Now I have to Train more Top gunners so I can do more JV’S

The Next Phase!

Although many of you have said that getting pass the noise in the market has been your biggest challenge…
You know, getting pass the gate keepers.

I must confess that this is where I began in this business over 20 years ago.
I was terrified of approaching any banker unless I was applying for a loan.
I understand the mental challenges you may face.
Remember, it took me 8 Months to get up the courage to go into the bank.
I simply wasn’t prepared for this task even though it was a basically a research visit.
Yes, this truly is a process…

Since this is a process, I’ve decided to use this as the foundation for build my Financing Academy.
For 9 years I’ve thought about developing a real Academy with a extensive training, testing, rating and certification.
I would like to eventually get my Academy fully accredited.

The founding members will have lifetime memberships and will be the core of the academy.
I’ve elected to have between 50 -100 founding members and to clone myself through this core group.

These members will be required to get 2 simple transaction completed with my assistance in order to get full certification.
1. Broker 1 deal of any size within 3 Months of Membership.
2. To Purchase 1 commercial property with my assistance within 6 months of joining the academy.

Once these task are completed, these Founding members will be qualified to do numerous joint venture projects with my companies.
Some will head up regional and local Financing Charters in their cities and states… etc.

The opportunities are awesome.

Since this will require a personal commitment from me, I’ve elected to open the doors of this opportunity first to our
current members before the public release.

The training Will Be Very Personal And Extensive !This will be my final contribution to the Self Development Phase of my Life.
This will be my legacy……

These members will be equipped to make major changes in their lives and the lives of other for many generations.

We will require interviews of all applicants, confidentially agreements will be required, non-compete agreements will be required.
The members will take test and be thoroughly equipped to get results like a Top Gun!
This won’t be something you can just buy into. The members will have to apply for admission .
All applicants must be “mentally fit” for the training and must be “committed to getting their certification”.

The certification will consist of passing a series of written and oral exams, oral presentations, lender interviews,
preparation of LOI and contracts, negotiating with Buyers, Sellers and Bankers.
Joint ventures will be available for qualified members.

I am no longer accepting any projects outside of my current core group. I have deals to give to away.
I am in a prime JV position. I have the properties and the financing. I don’t need any deals now!

I Had Some Help .. Some Very Good Help

I don’t want to give you the impression that I did all of this on my own because I didn’t
I had a lot of help and assistance in getting this done. So let me acknowledge the individuals that
were working behind the scenes all alone.

Doston Stanley… Malcolm Turner … Reabon Walker … Shavawn Walker …. Quentella Barton
Steve Battle

These were the people behind the scenes that made it all happen.
They all have their stories have demonstrated  their commitments to our task.
I will call them “True Top Gunners”. They built and provided the bridges I crossed.

I commend you you all for your contributions and support.

Let’s automate and duplicate the process a few more times….

Why The Academy Needed ?

We have over 400 members and have trained a few thousand people over the past 5 Years.
Many have started their own successful business and many are super successful investors and developers.
Now is the time to take my businesses and training to another level and this Academy will be my training
simulator.

I haven’t set a price on the tuition yet but that decision will be made in the next few days.

I will be inviting 8 Top Gun Members to join me in this new venture.

Now I get to move to the next Phase of commercial financing.

By the way, I am totally amazed what I achieve when I work my program rather than teach the program.
It works better every time I do it….

Is it getting easier, or am I getting better…?

Watch for my prelaunch email in the next few days.

Durante