You are approached by a friend or relative who says "I have got a great way you can make money! You can earn 50% per month, compounded, on this scheme. It's how the super-rich make their money. You can start in as low as $5,000! I've been doing it for the last four months and it really works….Look, why don't you try it out and see. There's no risk anyway, because the returns are guaranteed. You can be a millionaire by the end of the year!"

What would you do?

Well, what you should do is RUN, not walk, away as quickly as possible. What most people do, however, is get out their check-book!

I have been working in this arena for 12 years and have seen plenty of scams go through the mill. In this article, I'm going to show you how the con works, how you can spot it, and why these things are always, always scams.

I am passionate about the subject, because I have known people to commit suicide over these things.

People fall for these cons because they truly believe they are being offered something that normally only the Rothschilds, the Rockerfellers and other wealthy families take part in. I'm here to tell you that none of these things are for real. Nil. Zip. Zero.

Here is why:

Scams and Scumsters Part 1.

Bank Debenture Trading Programmes, Roll-over programmes, Instant High-Return Investments, Standard Letters of Credit - Do these names ring a bell?

"Do roll-over trading programmes really exist?"

It's a question I'm often asked.

"Yes," I answer, "They do. An associate of ours was paid a high three figure sum to ascertain exactly whether they exist, and where they are operated from."

"Great! How do I get involved?"

"You don't!"

I don't mean to spoil the party here, but if you are thinking of putting your money into a high-return investment (by which I mean anything that purports to get you a return of over 20-30% per month) then think very carefully about the wisdom of doing this before sinking your hard-earned cash into a bottomless pit.

I've talked to clients who have, literally, taken out a second mortgage to join a roll-over programme. I know clients who have made a lot of money from what they believe to be a legitimate roll-over programme. I also know more people who have lost the lot, because they were too greedy to know better.

Here's the normal pitch of the fake roll-over/bank debenture programme middle-man.

For a start, it is likely to be someone that you know, or someone who knows a friend of yours. That's because he is an agent, a middleman, working for a Mr. Big who never shows his face (because, supposedly, he has such high contacts and such an inside relationship with top international bankers and financiers that he does not have time to deal with mere mortals like you and me).

The middleman tells you, in a hushed tone, that he has the investment opportunity of a lifetime for you. You are guaranteed 25% a month returns, even if you only put in $5,000! And if you leave that in the fund to compound - think of what the figures will be like in a couple of years. Of course, if you have a little bit more to put in - say, $25,000 - well, then you move up the ladder to returns of 30% per month. Not a bad little earner, though he says so himself. And then there's the killer pitch - if you have $100,000 or more to sink into the fund, for a minimum of a year, you are GUARANTEED at least 90-100% returns every month!! Amazing!

"The money will soon be pouring into your account."

All you have to do is sign a small non-disclosure form, and give the middle man a cheque for the amount you choose, and away you go - the money will soon be pouring into your account.

Isn't that wonderful?

Well, yes, is the answer, it CAN be. I have seen clients who have made great amounts of money from these fake programmes. How? By getting in early enough. Think about it. It's the classic Ponzi Scheme - a pyramid of money, where, as long as you keep the money flowing in at the bottom fast enough, there will be sufficient funds to keep interim payments on all accounts. Meanwhile Mr. Big - who operates from a hotel suite in Hong Kong, Switzerland or perhaps the Cayman Islands, is actually Mr Filch. The real money is disappearing fast into private accounts all over the world. He can't be traced to it. And he already has his new identity ready-made to disappear just BEFORE the heat gets turned on.

What happens? Eventually, the momentum of the scam slows a little. The required numbers are not investing at the lowest level of the pyramid. Some people are not paid their interest. They tell other people in the same scam. These people get nervous and withdraw their funds. Or they try to. Depending on how many of them there are, some are successful. But at a critical point - judged by Mr. Filch - all payments stop.

By this time, Mr Filch is long gone. He has moved into a new apartment in London, New York or Panama, where he has begun the same con, under a different name, with new victims.

The middleman, of course, is in a more awkward position. You feel that he is responsible, because you trusted his advice and he's sold you a pup. But, because you signed a disclaimer, you feel that you can't do anything about it. You feel a bit of an idiot, but you always knew the offshore world was a risky one, full of sharks wanting to take good money from good people. That's what the government always told you, after all!

You shake your head and feel like kicking someone's backside, but, at the end of the day, you feel too much of a victim to do anything about it. And you probably invested the money without telling the tax man, so you feel you CAN'T do anything about it.

Well, here's your wake up call! Don't put yourself in the position to be the victim. Be the victor instead. Be the smart guy or gal. Stay one step ahead!

Here are a few tips.

1. If someone comes up to you with a deal that "just has to be done today" - walk away! No programme in the world requires you to sign "Right now!" to get in on the act, unless it's a scam. The con man will spin the line "Boy have I got a good deal for you, but you gotta give me your cheque right now, or you lose the place". So, lose your place and keep your money. Don't give in to the high-pressured sales technique.





2. If someone tells you that they are in a programme that is being run by top bankers across the world, find out which bankers - names and bank addresses. If the person then can't produce this information, ask yourself why would a banker in Zurich and a banker in Vienna really be interested in a $10,000 contribution from you or anyone else? And why would they be paying a third person a commission for bringing them a measly $10,000 (or $25,000 - or even $100,000)? It just doesn't add up! If they are top bankers, they don't need the extra cash, the extra admin or the exposure that such a move would make.





3. A quick note to people who attend offshore conferences. There is no conference organiser in the world who makes it a condition of attending his or her conference that you sign up with a particular investment programme.

I say this because I spoke at an event recently where one of the delegates came to talk to me privately. She was really worried. She had been cornered by three other (male) delegates who, seeing that she was new to the offshore world, thought they would squeeze some cash out of her.

"Do I have to sign up with this investment scheme?" she asked me. "Have to? No!" I said. "The whole point about what you are doing here is to take control over your own life, not to give in to bullies."

I went on to reassure her that there was no requirement for her to do ANYthing. Full stop. She, like all of us, is a free individual, with freedom of choice over her spending/investment. Again, don't allow yourself to be the victim. Luckily, she could ask someone she trusted. As a reader of The Q Wealth Report - you can do the same.

4. Do your due diligence. When in doubt, check 'em out! So many people want to move into the offshore world, but are frightened off by stories of rip-offs and scams. Certainly, it's harder to feel as though you are in control of your funds if they're half way across the world, but don't be put off by the tales of all the bad guys. There are plenty of good guys out there too. I can't give specific investment advice, but we are happy to give you names an addresses of a number of legitimate, proven investment houses/individuals.





5. Be wary of anyone who uses terms like "Guaranteed" or "Risk-Free". Investments are hard to guarantee, and if you are not taking any risk, you'll be lucky to get much of a return.