Quatloos! > Advance
Fee Fraud > Self-Liquidating
This scam takes us into the world
of international finance and arbitrage, where king-sized fortunes
may be won or lost overnight. I like these promoters, at least they
think BIG. But, although they
have big goals, they aim at small minds. And you would have to be
a small mind indeed to fall for the . . .
S E L F - L I Q U I D A
T I N G
L O A N S C A M !
All right, enough of the dramatic build-up. What
self-liquidating loans are (these are also sometimes called "Arbitrage
Loans") is best explained by how they purportedly work. According
to their promoters, there are five simple steps to building a huge
fortune in a couple of days:
Borrow from $100 million to
$500 million on a long-term basis, at least 20 years.
Take some of this money and
buy collateral, such as Certificates of Deposit, which you
pledge as security against the 1/2 Billion you just borrowed.
Take some of the other money
you just borrowed, and put it into investments which produce
income, which you use to make payments on the 1/2 Billion
you just borrowed.
Take a little bit of the money
you have left from the 1/2 Billion and pay broker's commissions
and finder's fees.
Whatever is left over you keep!
Hell, even if its just 10%, that's 10% of 1/2 Billion or $50,000,000
right there -- Tell the Learjet Dealership to stay open late
Well, this is how is supposed to
work anyhow. How does it really work? It doesn't, for obviously
as you can see above there are several critical flaws -- probably
the most important being that nobody is going to loan you from $100
million to $500 million unless you're Bill Gates or some lesser
billionaire, or a publicly-traded corporation with lots of assets
to seize if you default. Don't believe me? Just walk into your local
major bank and tell them you would like to take out a $100 million
loan; and don't mind that jacket they give you with the long sleeves,
they're just being courteous. Moreover, you don't have to have much
more than a 3rd grade level of mathematics to see that the numbers
just don't add up.
Where scammers make their money is
on the advance fees they earn helping suckers (mostly distressed
small business owners) make the applications for the loans, which
applications are usually made to some phony-baloney Antigua bank
which is purportedly back by an equally phoney-baloney insurance
company, such as the late International Depositors Insurance Corporation
(IDIC) which was lately exposed to be a massive fraud.
Well, if it doesn't work and nobody's
going to give you any money, how do the promoters make any money
-- after all, their not getting their commissions either, right?
Yes and no. If you've been keeping your eye on the promoter's commissions
you've already been suckered, because that's not the point of this
particular exercise. The real scam is:
BUYING THE BOOK THEY SELL
YOU FOR $99 OR MORE WHICH TELLS YOU ABOUT SELF-LIQUIDATING LOANS
AND THEN SCAMMING YOU FOR THE APPLICATION FEE FOR THE LOAN.
This is the scam, but you'd have
to be a REAL sucker to think that some bank was going to give you
a loan for $100 million. Unfortunately, there apparently a few of
these suckers around, paying their application fee for the loan
and then sitting around sometimes for years waiting for the loan
This is just flat out criminal "advance
fee" fraud and you should
contact your local law enforcement authorities immediately.
But what many of these people are
after is merely the cost of the book, but they want that cost from
as many people as will pay it to them. After all, they probably
didn't pay anything for it (you can make this crap up about as easily
as you can fill out somebody else's order form so that you can get
the book and scam other people), and all their doing is photocopying
the book at 10 cents per page and mailing it to you book-rate in
exchange for your $99 bucks.
Want to have fun with these folks?
Get their ordering mailing address, and send them a letter telling
them that you loved the book and that you have successfully obtained
a $500 million loan, that the money is sitting in your checking
account, and that you need further, more detailed instructions on
what to do with it!
PAPER SOURCE -- Credited With Saving Untold Numbers
From Being Cheated In the Biggest Advance Fee Fraud In History.