How to distinguish the financial swindler ofYa with an ulterior motive decided to talk on this subject. What honor at each seminar which I hold served as the reason, any of participants asks me to express opinion on this or that investment company which promises the moon to the clients. And when show me documents of these companies, the first 5 - 10 minutes I understand that these companies represent.
But why those who show me these documents are so credulous and ready to give the money practically to the first comer? In exchange for the UNFOUNDED PROMISE to earn for them there are a lot of money.
And I want to show on what it is worth paying to attention when do you the similar offer in this article.
So, about the black party of investment, i.e. about swindlers in the market.
When I hold seminars, I write on a board my so-called “ black list “ the companies which in cream a case cannot trust money. For the last year my list was truncated because three companies (read, pyramids) from this list disappeared. I was pleased that participants of our seminars were warned about danger of these companies and did not entrust them the money. I was pleased also what wash “ black list “ became much shorter. But for the last, much to my regret, I it filled up again few months.
In January, 2007 I held a seminar in one of the numerous cities of the CIS countries. During breaks usually ask me many questions (I even not always manage to drink coffee). This time two participants of a seminar approached me again and asked me: “ And you heard about such company … ….? She suggests us to invest the money in its funds, that is to give the money to them to management. Also offers very attractive percent “.
“ No, I for the first time hear about it, - I answered. - And you have some documents or prospectuses on this company? How long this company works? Where it is registered? What results of its work? “
They right there brought me the folder in which lay the draft agreement with the company and the brochure. “ Here it is written that this company also it is already a lot of years already long enough and successfully works at the market, - hunters of good luck told me.
I looked at documents. Also opened for itself absolutely new thing. More precisely, new way of marketing. In the booklet about the company the biography of some person with a foreign surname who was born in the first half of the last century was written. And the highlight consists that the company bears a name of this person. I thought and why don`t I call the " company; Warren Buffett “ and very many will decide that I have some relation to this great person. Also will incur to me money in management in hope to become billionaires as it was made by Warren Buffett.
Actually in advertizing documents there was only water - any useful information, and the advertizing of activity of the company only fulfilled and a set of photos with some the certificates. Neither term of work of the company, nor its last results.
And here in the contract there was very interesting information. The company took money in trust management and at the same time it guaranteed to the clients the minimum income in the size of 15% per annum. And at the end of the contract, in details of the parties, there was the American address of the company. That is it turns out what the company is registered in the USA? But by the legislation of the USA and any other normal the countries, management companies cannot give to the clients profitability guarantees if they take means in trust management . And how then to understand it? What the company is? Does it have a license allowing it to take money in trust management?
“ You know, looking at these documents, I had a resistant impression that it is the next pyramid, I told after superficial studying of documents. - I do not see any information which you can find in the booklet of any Russian management company - number of the license, work term in the market, profitability for the different periods of time, investment strategy etc. And in this regard I have a question to you - why you consider similar offers if in Russia and abroad there is a mass of the legal, reliable companies? “
You will never guess that I was answered by these two nice ladies.
They told me: “ But those companies about which you speak promise nothing to us and say that we can even lose part of the money during some periods. And this company yields guarantees and promises good revenue “.
My following argument was, in my opinion, unsinkable: “ But you can lose all the money if it turns out that you entrusted them to swindlers! “
But not so everything was simply - such easy way of our people will not convince. In response to my argument I heard from them: “ We understand it, but profitability high. Who else such will offer us? “
And further - even more terrible phrase: “ This company began to work for us only recently. Even if it is a pyramid, it is possible that we will manage to earn something “.
I did not know that else I can tell.
“ Perhaps, also you will be in time - in MMM too very many earned the mass of money. And maybe, you will be the last in turn which stands behind receiving the promised percent “.
I made one interesting supervision during the work in the different cities of the CIS. When at the seminars I write on a board the “ black list “ the companies which are active on our open spaces I ask whether participants of seminars know about these companies. As a rule, in Moscow and St. Petersburg nobody about them ever heard. And here in the towns of Russia and the countries, neighboring to it, about these companies heard very many. And in these towns I learn everything about new and new pyramids. This supervision says that in large capital cities of a pyramid work not really actively - they prefer to work in towns where people heard even about mutual funds a little and to collect there 1 - 2 thousand dollars.
And here too there is an obvious question - if these so successful companies and can earn big percent for the clients why they go on far regions and collect the capital by the small sums? If they worked legally and showed such outstanding results, they could collect even not millions, but billions of dollars in the large cities for very short term! But they prefer not to shine in Moscow and St. Petersburg. Probably, are afraid that in this case they will not manage to last long.
Other company in other city which is at distance of thousands of kilometers from the first city offers the clients the guaranteed profitability of 45% per annum.
So it for such “ benefactors “ and how they can earn so much money for the clients?
And, trying to protect you from hit in a network of such companies I recommend to pay the attention to some moments which will allow you to understand, whether the normal company before you or you - the next production of the next swindlers.
Here to what it is worth paying attention:
Read the contract. Sounds silly - it and is so clear that the contract needs to be read. But if it was so silly, I would not put this recommendation on the first place.
So, what it is necessary to pay attention when reading the contract to :
Subject of the contract. That suggest - to take you from you money in trust management, or in a loan, and still. All legal operating investment companies sign contracts for trust management of money of the client or for trusteeship. If suggest to give you under the contract the money to someone just on credit, be careful!!! If suggest to give you the money to trust management, pay attention to the second
point Existence of the license for attraction of financial resources in trust management. have the right to Render service of trust management on securities market only to the organization - the professional participants of securities market who obtained the license of FFMS (in Russia) or appropriate authorities of control abroad (SEC in the USA). If there is no such license, the company means is not law-abiding. And, therefore, it in the same way can not return to violation of the law to you your money - the unscrpulous companies are unscrpulous in everything.
Existence of guarantees for obtaining the income or just on preservation of the capital. If in the contract of trust management to the client guarantees obtaining the income, the company means has no license since according to legislations of the majority of the countries management companies cannot give any guarantees to the clients. If it is about big guarantees (more than 10% per annum) this company it is safely possible to carry in the category of the roguish companies.
Place of registration of the company. If the company is registered on unknown islands, it is already the reason for concern. Though for one this reason it is impossible to judge finally the company since many known companies open the divisions in the offshore to reduce taxes.
Learn about the past of the company and about her founders. How many years the company works at the market? What profitability it showed in the past? Who is founders of this company? All these questions have to be completely opened for you. We do not recommend to work with the companies which were registered less than three years ago and have no history.
It is quite enough to understand who faces you - the representative of the legal and successful company or the representative of the next pyramid.