Be Wary Of International Scams

Nov 30, 10 Be Wary Of International Scams
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by William Riley

Considering the price of doing business internationally, various time zones, and the range of foreign currencies, it was once complicated for offshore con artists to scam individuals within the USA. However, the Internet and the simplicity of moving funds around with online banking wire exchanges, PayPal, and Western Union, among others, has made it much easier for thieves to scam hapless people out of their cash.

International scams can take on numerous distinct varieties. Yet, the bulk of them involve Regulation S. This is a law that exempts US firms from enrolling securities with the SEC that are marketed exclusively outside the US to foreign investors. Scammers usually manipulate this type of offering by simply reselling Regulation S stock to US investors in breach of the guidelines.

Just last year, Texas billionaire R. Allen Stanford was charged with perpetrating an $8 billion investment scam. Mr. Stanford, as the Los Angeles Times reported, “cast himself as an offshore investment guru to the transatlantic jet set and benefactor to the Caribbean islands’ poor through multimillion-dollar promotions of their beloved sport of cricket.” He was eventually arrested by the FBI.

Eye-catching Internet sites, opulent catalogues, as well as “educational” tutorials are some techniques utilized to encourage victims to place funds in disreputable or non-existent organizations inside foreign countries. The come-on is usually in the shape of high, tax-free returns with zero associated risk. Victims fail to take into account that if they completely lose their investment, they do so without the safety of US law given that law enforcement agencies cannot easily conduct investigations outside of
America.

State-of-the-art swindles employ sophisticated terms such as “bank debentures” or “standby letters of credit,”, complicated-sounding principles such as “offshore fund leasing,” and mystical instruments like “interbank trading” and “seasoned notes.” Workshops are often held in exciting areas and cost thousands of dollars to enroll in, while promoters tout “connections” and a warranty of “no taxes” on your investment.

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