subject: How Not To Get Scammed By Ripoff Financiers and Fraudulent Entreprenuers [print this page] How Not To Get Scammed By Ripoff Financiers and Fraudulent Entreprenuers
The most common scam in use today by fake financiers is the Upfront Fee Request and may be called "processing", "application", "first months payment" or "due diligence" fees. While legitimate lenders may require you to pay application, appraisal, or credit report fees, these fees are never required before the lender is identified and the application is completed. In addition, the fees are generally made payable to the lender, not the broker or arranger of the supposed "guaranteed" loan or extension of credit and for the most part, on a large loan can be paid into escrow with your own lawyer. In most western countries, it is against the law to ask for money up front to help obtain a loan. This is the same for either a direct loan or through a third party.
Protect yourself with some simple guidelines:
If your company is looking at some financing offer other than with a leading bank or investors you know, here are 13 simple rules to follow that will save you a great deal of grief if things go off the rails.
1. Up front fees: Demand they be placed in escrow with your lawyer. However, provide the lender or investor with a notarized letter stating the funds will stay in the escrow account for predetermined length of time (Contract date of closing) and will be released upon irrevocable proof of funding.
2. Do a Google search on the name of the lender or his / her company. There are many anti-scam websites on the net.
3. Be wary of lenders / investors talking in terms of tens or hundreds of millions of dollars and using a free Hotmail, Gmail or Yahoo account.
4. What jurisdiction is the lender / investors company incorporated in? Is the company incorporated? Do a corporate search.
5. Be wary of beautiful websites with no physical addresses or contact information.
6. Request the lender provide his / hers SIN number or drivers license number. If there is nothing to hide and it is a real deal, they will not have a problem complying.
7. Note the investors / lenders vehicles license number.
8. Do not deal with a company that has only a post office box on the company letterhead unless they agree to provide a physical address.
9. Request and follow-up on other companies who the lender has funded. Demand third party proof of such funding.
10. If the funds are coming from a trading program, you will never receive a penny. They don't exist. www.publicdebt.treas.gov/cc/ccphony9.htm
11. Document all correspondence and tape phone conversations of a contentious nature. Not necessarily legal in courts but allows you to back up your position if matters go astray.
12. At meetings, take a witness. Ask leading questions and take notes. Finally, be suspicious of delays. If provided a 90 day window to close and it extends to 120 and then 150, you are not getting your money. Rest assured of this.
Always keep in mind; a fool and his money are soon parted. Click on the following for examples. www.parasitesandthieves.ca
