Spotting Scams Efforts

We are spotting scams for you!

Readers are sending us more and more what appear to be legitimate business deals. They are not as our spotting scams efforts Below reveals.

We have been using our spotting scams efforts to review three types of business scams:

Spotting Scams Efforts Types of Scams

1. Offshore structures (such as pure trusts) that do not work
2. Investment clubs and investments that are Ponzi schemes
3. Purported loan packages with up front fees

For example our spotting scams efforts revealed an example of a loan fee ripoff when a reader from New Zealand sent us this note.

Spotting Scams Efforts Note

“I’ve been trying for years to find Venture Capital for many viable East European projects. I did not have much success mainly owing to the fact that most of the projects did not meet the IRR (Internal Rate of Return) fund requirement to be at least 40% annually. Instead I have been looking for alternative investment and this is what offer I have received from an American financial consulting firm. What worries me is the up-front fee (US$400K) requested for the 1st program (Commercial Mortgage Bond) and US$ 125K escrowed and then refunded after the closing for the 2nd program. Could you please have a look at both procedures and advise if both are legitimate and doable or just another scam? For your information I have checked the American financial consulting firm with Dun and Bradstreet and it appeared financially strong and no litigation reported on it for the last 10 years of its operation.”

Spotting Scams Efforts Reply

This data was beyond my experience, so here was my reply.

“I may be missing something but this does not make a lot of sense to me. I am passing this onto my banking advisor Steve Rosberg who as a banker knows more than I do about this. I would be very careful about paying $400,000 up front. Also be careful of the trick one of our Canadian readers sent to us last week where a phony company incorporated in the Bahamas used the name of a reputable company in Canada so that the investor got a good D & B report when he checked, but the D & B was on the Canadian firm not the Bahamian firm.”

If you are a reader and have concerns about whether some business offer is legitimate, let us know and we will try to help.

Steve of course quickly pointed out that the offer was nonsense and there was no reason for the $400K fee.

If you are worried about some investment or business deal that someone is offering you do not hesitate to contact us.


My novel the 65th Octave looks at scam protection issues. The hero is a scam catching expert who works for big banks. The book outlines why scams work and why suckers always lose. I recommend you read the book. It has some in depth economic information but is also a fast paced, fun read.

Order the 65th Octave at

Sometimes one picture is worth a thousand words


To avoid scams balance yourself in nature like this cabin at Gary and Merri Scott’s Merrily Farm where you are welcome to visit and stay Little Horse Creek.