An Investor Representative - is it a fraud?

Are investment subject and investment project attractive for business? Of course it is as well as for swindlers too! And both parties are equally subjects to a fraud: investors and innovators who are thirsting for investments. The more money sum the more swindlers are cunning and active.

How to find a real investor and not to be fallen into swindler's hands? Is it possible to avoid a fraud?

Certainly, it is possible. It is necessary to understand this problem more clearly.

In spite of big variety of scenarios which are very popular among swindlers, there are few basic rules how to find and unmask any swindler.

Let's consider situations when swindlers speak in the name of an investor. In these cases they act in the first person, directly as business investors itself or as their representatives. The point is to get money as much as possible and faster, with the tightest period in registration!

If we skip all details we will see that the essence of the question comes to a fact that a fake investor suggests a financed project and doesn't define a certain amount of money! An "investor" takes great responsibility and all decision of such problems as developing of a project documentation, certification, granting of an insurance sum (depends on imagination of a swindler), so a certain business plan. The only thing is to pay for these services and everything will be fine. Usually payment makes a small percent from future investments in order to embroider all evidences of a project.

A classical scheme: «you bring money in the morning, I give your stuff in the evening»! To throw dust into eyes fake investor may even ask to make an agreement of consulting services, for example. But this document will include nothing about investments! Everything will be legal and you will be fooled by a swindler.

Swindlers are not badly erudite people in most cases, they understand basic problems of economy, new trends of development in various branches, speak brand names loudly, and show their awareness in every possible way.

They suggest solving your other problems in order to gain your trust. Pay attention that swindlers operate usually not on its own behalf, but as intermediaries: they don't solve a question, they transfer something, to someone, somewhere ... And a solution of a question gets postponed for various reasons - very valid in fact ... And you pay, pay again, and pay extra ... here a little more ... Having extended their income from you as much as possible, "investor" disappears then.

Some more dangerous scheme is used quite often: having convinced one potential partner of the validity of its own intentions (about investment), swindlers arouse victim's interest and make him to involve more trusted investors into a project. This scheme is more dangerous because an offer arrives from trusted partner, vigilance sleeps as a log here! You should protect yourself against swindlers! If you are looking for an investor, first be wide-awaken! First question is: from whence have you heard about this investor? Swindlers advertise themselves in newspapers and in the Internet quite often like spam for example. Give yourself a trouble to find out more information in the Internet at least! Serious companies own homepages in anyway.

Visit a potential investor's homepage examine its quality, domain address (serious companies have top-level domains), check up date and company's registration location, get acquainted with founders (by the way whose money is offered?). The following information should be in presence: about partners, accredited insurance, auditor companies. Try find out additional info on homepages of these companies.

Second question is: who is an investor? It is the one who gives money! Inputs, Provide! Instead of a taking! If an investor ASKS money, this is the first thing that pay attention on!

The problem of fake investors disturbs professional investors all over the World, they fight with dirty investors systematically, including educational work with undertakers and businessmen.

In a summary I would like to say: Take care! You will be fooled as many times as you allow it to happen.

13 October 2011
Comments may leave only registered users. Login or register !
08 November 2016
Dear Sir, We are direct providers of Financial Instruments Bank Guarantee, Standby letter of credit, Letter of credit, Bank Draft, POF, Blocked funds from AAA / AA Rated global banks. We offer both leased and owned BG,SBLC,DLC,Blocked funds,POF and LC which can be deployed for credit enhancement, credit line,Commerce, Import and Export, Oil and Gas, Crude oil Importation, Business financing, Capital Injection, project financing, loan collateral and non recourse loans. All commissions are 100% open as we are the direct trader provider. No chain of brokers or agents are allowed. We only deal directly with clients and not through any agent, representative or broker. If you have any need for any form of financial instrument, we are the best among the service providers. Our issuing banks are Deutsche Bank AG London, Deutsche bank New York, Credit Swiss London, Hsbc London, Lloyds Bank London and Barclays Bank London. Best Regards, Mr Ronald Rajnesh Gounder Email:grounesh.advisor y1@gmail.com Skype:grounesh.ad visory