Fraud > HYIP
& Bank Debentures > EXHIBIT:
Omega Trust & Trading
"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.
(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
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/
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
That any of the Omega money was legally invested for the benefits of
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
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
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
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
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
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/
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
"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,
"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.
[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
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/
We've created a new page JUST for the wackiest post-Indictment
rumors. Click Here
to get a good belly-laugh!
The Clyde Hood Audio Tapes
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.
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
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
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
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.
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
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
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
PLEASE MAKE MONEY ORDER OR CASHIER'S CHECK PAYABLE TO.
& SHIP TO:
Or Entity: _______________________________
(Please Type or Print Name)
City: __________________ State: _____ Zip: _________
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from the insane
Knight Report (parody)
"To the multitudes of investors who sent him
money, Clyde Hood's promises of low-risk, high-return investmensts
must have sounded like the answer to their dreams. Now Hood is headed
for prison, and the money is mostly gone." ~ Shane Trisch,
False Profit, Chicago Magazine
"False Profit" recites the bizarre story of the
retired electrician who held himself out to be one of the world's
top financeers in the process of fleecing tens of millions from
tens of thousands. A "must read" for those interested
in the Omega saga!
Financial Instrument Fraud" -- prepared by the
ICC Commercial Crime Services, the anti-crime arm
of the International Chamber of Commerce. This unique reference
guide uncovers the mysterious world of High Yield Investment Programs
(HYIP) and Financial Products such as Letters of Credit, Bank Guarantees,
CD's, Safe-Keeping Receipts and more as used by Fraudsters. By
Jon Merrett and Paul Renner
Programs - NESARA: Open discussion forum about NESARA,
Dove of Oneness, Patrick Bellringer, Truth Warrior and all the others
spinning the NESARA tale. Includes the latest rumors about the Galacticans
comings to Earth and Jennifer's blood ozonation machine.