Offshore Investment Seminar Frauds
Offshore investing seminars, which usually last anywhere from
a weekend to a week, are typically held in exotic, luxurious surroundings.
The well-off people, who aren't super-rich, paying $3,000, $4,000,
$5,000 or more to attend the conferences lap up the life of luxury,
and ultimately buy into the message that they can live that way
all the time if only they invest in some promoted program of wealth
generation.
Offshore Investment Seminars
Currently there are many individuals out there
trying to convince their business acquaintances and friends to
travel to certain offshore investment seminars costing approximately
$10,000, promising unbelievable monetary returns on your investment
(i.e. 30% per month) which often turn out to be through
fake 'prime bank trading programs'.
You initially pay $10,000, then can
attend subsequent seminars, plus by taking along friends
you only pay $2,000 while the friend pays $10,000.
One group of promoters claims
only to be putting you in touch with the investment
advisers and these investments and that they are
independent of any investments you may take up.
This disclaimer is likely to circumvent the need
for being a licensed investment advisor.
The Not-So-Good Doctor
Some seminars still quote a Dr Rudolf Van Lin,
also known as Rudolf Alexander Victor Linschoten of California.
In 1999, the US SEC successfully brought an action alleging that:
"…he told investors that
their funds would be used for a secret "bank trading" program
and guaranteed a 100% return within 90 "banking days" in
a "risk free" investment. In fact, there was
no bank trading program. He used investor funds to purchase
cars, guns, residential property, and to pay credit card
and hotel bills. Investor funds were also transferred to
Linschoten's Swiss bank account." (http://www.sec.gov/litigation/litreleases/lr16153.txt)
In September of 1999 he was given 60 months
in jail after pleading guilty to conspiracy and securities fraud.
He was also ordered to pay restitution of $5,712,331 to the victims
at a monthly rate of $3000 once released into probation. (SA
CR 99-34-AHS)
Wholesale Fraud
Investors International Pty Ltd. ran afoul
of the Australian Securities and Investment Commission in 1999
for offering a product which they claimed was an 'educational
program' involving video and audio material, and attendance at
an overseas seminar. The topics covered such areas as tax minimization,
offshore investment and how to set up an offshore corporation
and/or trust.
The Federal Court found that this was
in fact investment advice, and prohibited the company and
its sole director from offering this advice because neither
the company nor the director, Stuart Drummond Arthur, were
licensed.
At the time, ASIC believed that throughout
Australia there were more than 600 retailers of the product wholesaled
by Stuart Arthur and his company. As a result of the Federal
Court order, any unlicensed retailers who offered Investors International
products, or products similar to the type offered by Investors
International, may be in breach of the law.
Tax Relief May Help Recover Major Investment
Losses for Fraud Victims
165 Services -
assists qualified investors in fully deducting their entire investment
losses against ordinary income. 165 Services clients receive, on
average, $50,000 each in tax benefits.
MSS Advocacy Group,
educating and assisting injured investors through competency, compassion
and a compilation of investment fraud loss experts in an effort
to raise public awareness of securities scams while seeking to
achieve maximum tax recovery.
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