Global Sports: Investing Offshore Is Very Risky

Monday, November 15, 2010

Investing Offshore Is Very Risky

By William Riley

The expenditure of performing business around the globe, diverse time zones along with a variety of currencies once made it difficult for offshore con artists to con people in the usa however the Net and the capacity to quickly move cash around with online banking wire exchanges, paypal and western union online has opened the doors for those thief's to quite easily fraud folks out of their money.

Worldwide ripoffs can take on many distinct types but a majority of them include "Regulation S." This is a rule that exempts US organizations from registering securities with the SEC that are distributed solely outside the US to overseas investors. Con artists usually manipulate this type of offering by simply reselling Regulation S stock to US investors in violation of the rule.

In '09, Tx billionaire R. Allen Stanford was charged with perpetrating an $8 billion dollar investment fraud. Mr. Stanford, as the Los Angeles Times reported "cast himself as 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 arrested by the Fbi 4 months afterward.

Beautiful websites, opulent catalogues, as well as "educational" seminars are a number of techniques employed to convince people to place funds in disreputable or non-existent businesses inside overseas countries. The dangling carrot is typically in the form of high, tax-free returns with absolutely no associated risk. Victims don't succeed to consider that if they take a total loss of their investment, they do so without the protection of US law given that law- enforcement agencies simply cannot investigate easily outside America.

State-of-the-art swindles use intricate language such as "bank debentures" or "standby letters of credit," complicated-sounding ideas similar to "offshore fund leasing," and mysterious instruments similar to "interbank trading" along with "seasoned notes." Training seminars are typically held in fascinating areas and cost thousands of dollars to attend; promoters tout "connections" and a warranty of "no taxes" on your investment.

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