Thanks to Lakehouse @ Going Global - Good time to repost this...Please keep in mind this does not just apply to financial planners...bankers, trusts, etc.


Friday, July 22, 2011

Your Dream of a Lifetime ...

Your dream of a lifetime .. if handled correctly, could be your children's dream and their children's dream .. right on down the line ...

Everyday another site offering investment opportunities of a lifetime are popping up. It seems that anyone these days can pass themselves off as a certified financial advisor. And .. although they may claim to have credentials, it is up to you, the investor, to ask the hard questions. Don't assume because they tell you they have a series 1,2,or 3 license, that they are qualified to invest your hard earned money. Never, ever, feel like you are the ignorant one when they start throwing around terms that you never heard before. The scammer wants you to believe that they know more than you and they want you to believe that Your money will be safe in Their hands.

Don't be too sure about that. Take a look at the following pdf file. http://www.nfa.futures.org/NFA-investor-information/publication-library/scams-and-swindles.pdf

Also, if you do sit down, or correspond over the internet, with one of these fly-by-night "investment advisors", make sure you have a pen and paper handy and ask the questions that you need answered. Believe me, you do not give yourselves enough credit when it comes to trusting your own judgment. You Should! You are in the drivers seat. Remember that. This is not a popularity contest .. this is your money and hopefully your children's money and their children's money. Take your time. Do your homework and seek the advice of a professional that is close to you. It should be someone in close proximity (town, city) where you can talk face to face. The internet may be convenient but it's a dangerous place and it's hard to track someone down if things go terribly wrong. Also, Do not rely on what others have to say as far as references. Remember, references could be part of the "financial advisor's" Team .. Bernie Madoff had a "Team" .. watch/read - Link ~ More Wealth .. Means More Responsibility .. Be Smart .. Be Cautious .. Don't Let History Repeat Itself ...

good luck ... Kel ...
Scams AND Swindles
An Educational Guide to Avoiding Investment Fraud
http://www.nfa.futures.org/NFA-investor-information/publication-library/scams-and-swindles.pdf


SOURCE

FROM STRAIGHT TALKING MIKE

WARNING...BE AWARE OF THE NEW SCAM

If you know anybody who posts ads online, forward this article to them — they just might thank you for saving their bacon.


TOP STORY

March 22, 2012

New scam involves PayPal and Western Union

 By Woody Leonhard

There's a new variation on the old "Nigerian" or "419" scam, one that invokes the names of PayPal, Western Union, and the FBI — and the scammers are raking in billions.

Let me introduce you to the way these scum operate — and show you a few tricks that may keep you from adding to their booty.

"Greetings, I am writing this letter to you in good faith and I hope my contact with you will transpire into a mutual relationship now and forever. I am Mrs. Omigod Mugambi, wife of the late General Rufus Mugambi, former Director of Mines for the Dufus Diamond Dust Co. Ltd., of Central Eastern Lower Leone …"

I'm sure you're smart enough to pass over e-mail like that — at least, I hope so. It's an obvious setup for the classic 419 scam — also known as the Russian scam, the Detroit/Buffalo scam, and, of course, the Nigerian Letter, as described in a Wikipedia page. (The 419 moniker is derived from the Nigerian Criminal Code, Chapter 38, Article 419: "Obtaining property by false pretences; cheating.")

Recently I bumped into a more sophisticated version of the same kind of scam and tried to trace it all the way back to its source. I'll take you through the scam's stages and show you some of its wrinkles. Plus I'll whine about the way big companies such as PayPal and Western Union are letting us down, and I'll talk about how I rode the paperless trail to its roots. You may be able to, too.

There's a reason why everybody gets so much 419-scam e-mail. It's a huge business. The 419 Coalition says that, as early as 1996, 419 scams netted U.S. $5 billion. The subsequent rise of the Internet and e-mail has only increased the opportunities for this type of fraud. (While Nigeria does harbor its share of 419 scams, perpetrators can be found in all corners of the globe, including the U.S. But, as you'll see shortly, there are significant advantages to working out of small countries.

New wrinkle on an old ploy — the PayPal scam

It all starts when you place an online ad.

It doesn't really matter what you're selling, as long as it's physically large and valuable. It doesn't matter where you advertise — I've seen reports of this ploy being played on Craigslist advertisers and other major online sites.

I first found out about this PayPal 419 scam when a handful of advertisers in my local newspaper all got hit within just a few weeks of each other.

One of the intended victims contacted me the minute he received the first solicitation. He agreed to let me step in and act on his behalf. Here's what happened.

The scammer, PaulW (modified by this author), sends me this message from a Gmail address: "I will like to know if this item is still available for sale?" I write back and say, yes, it is, and he'd be most welcome to come and take a look at it.

PaulW writes: "Thanks for the response, how long has your friend owned this item? let me know the price in USD? I am OK with the item it looks like new in the photos I am from Liverpool UK, i am sorry i will not be able to come for the viewing, i will arrange for the pickup after payment has been made, all documentation will be done by the shipper, so you don't have to worry about that. Thanks"

Three key points: The scammer is using a Gmail address, which is nearly impossible to trace without a court order; he claims to be out of the country; and he claims that he has a shipper who will pick up the item. The plot thickens.

I write back and say that the item's practically new, I give him a price, but I express concern about the shipper.

PaulW replies: "My shipper will be coming from UK for the pickup, and pls tell your friend to prepare all the export documentations for the pickup. I'm quite satisfied with the condition and price. I will be paying the PayPal charges from my account and i will be paying directly into your PayPal account without any delay, and i hope you have a PayPal account."

I respond, giving him a dormant PayPal account and my "address" (which is, in fact, my local police station).

He quickly writes back: "I have just completed the Payment and i am sure you have received the confirmation from PayPal regarding the Payment. You can check your paypal e-mail for confirmation of payment.a total of 25,982usd was sent, 24,728usd for the item and the extra 1,200usd for my shipper's charges,which you will be sending to the address below via western union."

(I'll call the shipper William C. I've deleted the address because it actually exists in Devon, England. A different person, being scammed at about the same time, was also instructed to send money to the same Devon drop.)

Note the ploy here: I'm supposed to immediately send $1,200 to the shipper via Western Union. Of course, no PayPal payment to cover both the purchase and the shipping was ever sent.

"You should send the money soon so that the Pick Up would be scheduled and you would know when the Pick Up would commence, make sure you're home. I advice you to check both your inbox or junk/spam folder for the payment confirmation message."

I then receive a message claiming to be from "Service-Intl.PayPal.Com":

"The Transaction will appear as soon as the western union information is received from you,we have to follow this procedure due to some security reason … the Money was sent through the Service Option Secure Payment so that the transaction can be protected with adequate security measures for you to be able to receive your money. The Shipping Company only accept payment through Western Union You have nothing to doubt about, You are safe and secured doing this transaction and your account will be credited immediately the western union receipt of *1,200USD* is received from you."

From that point on, it was hard to keep a straight face — you'd think the scammers would put some effort into writing business-quality, standard-English sentences (or pay someone to edit them). But "PaulW" and "Service-Intl.PayPal" got progressively more strident when I asked questions about the PayPal Service Option Secure Payment method (which doesn't exist). The tone turned downright abusive; I eventually received a message from a different e-mail address, Service[at]Intl.PayPal[dot com], (address modified by this author) with the FBI logo at the top (shown in Figure 1).

Driver License & Identity Protection 

Thanks to Dinar Recaps Post
Post By Smee2 Dinar Vets 02/27/2012  

Someone put up a post about being asked for his driver's license while trying to purchase more dinar and he was upset and wanted to cancel his purchase. There is a legitimate reason for the request and it is actually for YOUR protection. Read on ...

All this commerce by computer is making some strange demands on us, the consumer. I read your post and thought, this must be the next "glitch" that are going to have people pulling their hair out. This used to be an area of expertise for me years ago and though things change, they don't change all that much. So, try this on for size.

Some not-so-nice people, let's call them crooks, will get hold of some of your personal information. Oh heck let's call them identity thieves, it fits. It is fairly easy to get your credit card number, they can get it without you even opening your wallet with some of the newest scanning equipment.
...
They are still getting card numbers with the old double receipt ploy and several other sneaky tricks. But those numbers do not always come with an address. Take a look at your credit cards. Do any of them have your address on them? Didn't think so.

So, these crooks, oh no, I mean these identity thieves get your credit card number. They go on line and they buy ... oh, let's say three million dinar, just as a for instance.

 First of all, if the card is declined at the end of the transaction, they will re-enter the information for the purchase of two million. See, if the card isn't authorized for the amount they are trying to charge, it will be declined.

By lowering the amount once or twice, the thieves are likely to hit on the right amount that will be accepted. If they blow it altogether and none of it is accepted and maybe their lowest amount of the three would be say $1000, then they will try again in a couple of days.

If they try more than three times and it is declined that often, an immediate red flag goes up and you may get a call from the credit card company asking if you are in possession of your card and have you been trying to use it in the past hour, or whatever.

If you have not they warn you that your card may have been compromised. That someone has the number. And then you have the chance to have them stop all transactions on that number and give you a new number and card. Didn't know any of that?

 Well, it could save you a bundle. If the crooks find out that your charging per day limit is $1000 they will charge just under that amount every day until the account limit is reached and the card declined.

Okay, lets get back to the address part of this. The identity thief will start out with your number. And they go through whatever process they have to in order to find out how much they can take at a time from your account. Then they will use it.

If they are ordering on line there is a place to put the delivery address. They can pick a vacant lot. They can specify one or two day delivery in a lot of cases. They can then take a van, wait at the address they gave, take delivery of the goods, and drive off.

In case a vacant lot seems to obvious, they will use an apartment building, and get in to the lobby area and wait there for the day. Each time someone comes to the door to come in, usually a resident, they will come and open the door for them. Why?

Because they want to meet the delivery person even before he tries to push a button for your apartment number, which may not even be on the listing, because the crook may have given a non-existent apartment.

 But he will make sure that he is there to open that door. And when it is the delivery man, he'll ask where the delivery man is going because he (the crook) is waiting for a delivery. "Oh, that's me," he says. And he scribbles a signature and takes the package.

See, if the company you are buying from does not have your real address, and use a phoney supplied by the crook, then the delivery company is delivering to the phoney address and the crook is there waiting, and when you call to complain because you were charged for something you didn't get, didn't even order, didn't even want ... you are the one stuck paying anyway.

And if the crook can give a phoney address, maybe a real building but a phoney apartment number, one that doesn't exist ... the trail ends there.

So, to combat this, companies are now beginning to ask for proof of your address for shipping purposes. Hence the request for a fax of your drivers license.

The day may come when direct mailers and on line sellers may be able to tie into department of motor vehicles, or whatever it might be called where you live, and just by asking you your drivers license number they can look up your address to make sure the address they have been given for delivery is legitimate.

And that, dear DV friends, is why you may be asked for a copy of your driver's licence. So don't go off and get angry with the company ... it is just more progress.

Source

_Going Global Post - Thank You

COMMISSION ADVISORY

BEWARE OF

FOREIGN CURRENCY TRADING FRAUDS

    Have you been solicited to trade foreign currency contracts (also known as "forex")?

    If so, you need to know how to spot foreign currency trading frauds.

The United States Commodity Futures Trading Commission (CFTC), the federal agency that regulates commodity futures and options markets in the United States, warns consumers to take special care to protect themselves from the various kinds of frauds being perpetrated in today's financial markets, including those involving so-called "foreign currency trading."

A new federal law, the Commodity Futures Modernization Act of 2000, makes clear that the CFTC has the jurisdiction and authority to investigate and take legal action to close down a wide assortment of unregulated firms offering or selling foreign currency futures and options contracts to the general public. In addition, the CFTC has jurisdiction to investigate and prosecute foreign currency fraud occurring in its registered firms and their affiliates.

The CFTC has witnessed the increasing numbers and growing complexity of financial investment opportunities in recent years, including a sharp rise in foreign currency trading scams. While much foreign currency trading is legitimate, various forms of foreign currency trading have been touted in recent years to defraud members of the public.

Currency trading scams often attract customers through advertisements in local newspapers, radio promotions or attractive Internet sites. These advertisements may tout high-return, low-risk investment opportunities in foreign currency trading, or even highly-paid currency-trading employment opportunities. The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks, or that employment as a currency trader will make you wealthy quickly.

Understanding Legitimate Foreign Currency Operations

Generally speaking, foreign currency futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC.

Even where currency trading does not occur on a Commission-approved exchange or board of trade, the trading can be conducted legally where, generally speaking, one or both parties to the trading is (or is a regulated affiliate of) a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth.

Where forex firms do not fall into the categories of regulated entities outlined above and engage in foreign currency futures and options transactions with or for retail customers who do not have high net worths, the CFTC has jurisdiction over those firms and their transactions.

Warning Signs of Fraud

If you are solicited by a company that claims to trade foreign currencies and asks you to commit funds for those purposes, you should be very careful. Watch for the warning signs listed below, and take the following precautions before placing your funds with any currency trading company.

1. Stay Away From Opportunities That Sound Too Good to Be True

Get-rich-quick schemes, including those involving foreign currency trading, tend to be frauds.

Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.

2. Avoid Any Company that Predicts or Guarantees Large Profits

Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

The following are examples of statements that either are or most likely are fraudulent:

    "Whether the market moves up or down, in the currency market you will make a profit."
    "Make $1000 per week, every week"
    "We are out-performing 90% of domestic investments."
    "The main advantage of the forex markets is that there is no bear market."
    "We guarantee you will make at least a 30-40% rate of return within two months."

3. Stay Away From Companies That Promise Little or No Financial Risk

Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.

The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies that make the following types of statements:

    "With a $10,000 deposit, the maximum you can lose is $200 to $250 per day."
    "We promise to recover any losses you have."
    "Your investment is secure."

4. Don't Trade on Margin Unless You Understand What It Means

Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.

Many currency traders ask customers to give them money, which they sometimes refer to as "margin," often sums in the range of $1,000 to $5,000. However, those amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers.

Don't trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.

5. Question Firms That Claim To Trade in the "Interbank Market"

Be wary of firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf.

Unregulated, fraudulent currency trading firms often tell retail customers that their funds are traded in the "interbank market," where good prices can be obtained. Firms that trade currencies in the interbank market, however, are most likely to be banks, investment banks and large corporations, since the term "interbank market" refers simply to a loose network of currency transactions negotiated between financial institutions and other large companies.

6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise

Be especially alert to the dangers of trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund.

It costs an Internet advertiser just pennies per day to reach a potential audience of millions of persons, and phony currency trading firms have seized upon the Internet as an inexpensive and effective way of reaching a large pool of potential customers.

Many companies offering currency trading on-line are not located within the United States and may not display an address or any other information identifying their nationality on their Web site. Be aware that if you transfer funds to those foreign firms, it may be very difficult or impossible to recover your funds.

7. Currency Scams Often Target Members of Ethnic Minorities

Some currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television "infomercials."

Sometimes those advertisements offer so-called "job opportunities" for "account executives" to trade foreign currencies. Be aware that "account executives" that are hired might be expected to use their own money for currency trading, as well as to recruit their family and friends to do likewise. What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash.

8. Be Sure You Get the Company's Performance Track Record

Get as much information as possible about the firm's or individual's performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false.

9. Don't Deal With Anyone Who Won't Give You Their Background

Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says.

Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form.

If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.

10. Warning Signs Of Commodity "Come-Ons"

If you are solicited by a company to purchase commodities, watch for the warning signs listed below:

    Avoid any company that predicts or guarantees large profits with little or no financial risk.
    Be wary of high-pressure tactics to convince you to send or transfer cash immediately to the firm, via overnight delivery companies, the internet, by mail, or otherwise.
    Be skeptical about unsolicited phone calls about investments from offshore salespersons or companies with which you are unfamiliar.
    Prior to purchasing:
        Contact the CFTC.
        Visit the CFTC's forex fraud web page.
        Contact the National Futures Association to see whether the company is registered with the CFTC or is a members of the National Futures Association (NFA). You can do this easily by calling the NFA (800-621-3570 or 800-676-4NFA) or by checking the NFA's registration and membership information on its website at www.nfa.futures.org/basicnet/. While registration may not be required, you might want to confirm the status and disciplinary record of a particular company or salesperson.
        Get in touch with other authorities, including your state's securities commissioner (www.nasaa.org), Attorney General's consumer protection bureau (www.naag.org/), the Better Business Bureau (www.bbb.org) and the National Futures Association (www.nfa.futures.org).
        Be sure you get all information about the company and verify that data, if possible. If you can, check the company's materials with someone whose financial advice you trust.
        Learn all possible information about fees charged, and the basis for each of these charges.
        If in doubt, don't invest. If you can't get solid information about the company, the salesperson, and the investment, you may not want to risk your money.

11. More Information and Contacts

    Questions concerning this advisory may be addressed to the CFTC's Office of Public Affairs at (202) 418-5080.

Commodity Futures Trading Commission
Three LaFayette Centre
1155 21st Street, N.W.
Washington, D.C. 20581

    The Commodity Futures Modernization Act is available in our Law and Regulation page.
    (requires an Adobe Acrobat reader, which can be downloaded for free from www.adobe.com and numerous other sites on the Internet)

    For other consumer advisories concerning possible fraudulent activity in the commodity futures and options industry, click on the Customer Protection page.
    Contact the National Fraud Information Center (www.fraud.org).

    The CFTC's website also offers general information about trading in the commodity futures and options markets. You may wish to visit our Before You Trade page.

    To find out whether firms or counterparties with whom you plan to trade are registered or regulated institutions or entities that are outside the CFTC's jurisdiction, you can check the lists of regulated institutions on the following websites. Some institutions outside the CFTC's jurisdiction do not appear on any of these lists or in other readily-available places:
        Federal Reserve Board (www.federalreserve.gov)
        Federal Financial Institutions Examination Council (www.ffiec.gov)
        Federal Deposit Insurance Corporation (www.fdic.gov)
        U.S. Securities and Exchange Commission (www.sec.gov)
        The Office of the Comptroller of the Currency (www.occ.treas.gov)
        Office of Thrift Supervision (www.ots.treas.gov)
        National Credit Union Association (www.ncua.gov)
        National Association of Securities Dealers Regulation, Inc. (www.nasdr.com)
        All U.S. Government web sites can be located through links at www.firstgov.gov
        Your state Attorney General's office and state banking, insurance and securities regulators (which often have their own web sites).

http://www.cftc.gov/opa/enf98/opaforexa15.htm

http://articlesofinterest-kelley.blogspot.com/2011/12/commission-advisory-beware-of-foreign.html

 

_Thanks to Going Global..

Radio host gets charged in Ponzi scheme

    Article by: DAN BROWNING , Star Tribune
    Updated: July 20, 2011 - 10:28 PM

Pat Kiley is among three associates of Trevor Cook's to face federal charges.
hide

Gerald Durand, Jason Beckman, Patrick Kiley

Conservative radio show host Pat Kiley claims he was just reading from a script when he told his worldwide radio audience in weekly broadcasts that he was a senior financial adviser and they could avoid financial Armageddon by entrusting him and his business partners with their money.

But federal authorities say he did much more than that. In an indictment unsealed Wednesday, Kiley was portrayed as an integral figure in the $194 million Trevor Cook Ponzi scheme that defrauded more than 700 investors.

Kiley's program, "Follow the Money," was carried on more than 200 stations nationwide, including KSTP Radio (1500 AM), and on the Worldwide Christian Radio network. He called his listeners "truth seekers" and drew them in, rich and poor alike, with promises of financial security, just as the bottom began to drop away from the stock market.

Kiley insists that he believed in the currency investment program he promoted for Cook, his longtime friend and Minneapolis money manager who was sentenced in August to 25 years in federal prison on fraud and tax evasion charges.

But a grand jury charged Kiley and two of Cook's key associates with conspiracy, mail fraud and money laundering counts.

The indictment was unsealed Wednesday after Kiley and Jason Bo Beckman, a brash 41-year-old Plymouth money manager, made their initial appearances at the federal courthouse in St. Paul. Another longtime associate of Cook's, Gerald Durand, 60, of Faribault, is expected to turn himself in soon. Each man has steadfastly denied any wrongdoing.

News of the indictment traveled quickly among investors who lost money in the scheme.

Heiko Reske echoed others when he said he was delighted by the charges. After an investor lawsuit exposed the scheme in July 2009, Reske drove to the Twin Cities from his home in Denton, Texas, to demand that Kiley return his $700,000 investment. He returned home empty-handed.

"I'm amazed it took this long," Reske said on Wednesday. "The wheels of justice grind slowly, I guess."

Ty Schlobohm, a Long Lake trader who worked undercover with the Federal Bureau of Investigation in an effort to expose the scheme, applauded regulators and law enforcement for what he called their tenacious work. "I can only hope that these arrests ease the pain and offer some closure for the victims of this scheme," he said.

Kiley, 73, of Minneapolis, had produced his radio program out of a home Cook owned in Burnsville. He invited listeners to call him to learn how they could protect their money. Hundreds did, and he spent hours with them on the phone, telling them that he was a senior economist and a financial adviser to the family that owned the Kroger stores as well as engendering sympathy by falsely telling some investors that his wife had been killed in an accident involving a drunken driver.

Kiley said in an earlier interview that Cook prepared the scripts and that he had no choice but to go along. He has told federal authorities that he believed in Cook's currency investment strategy and just wanted to help investors.

Kiley initially solicited investors for a firm Cook started called Universal Brokerage Services. Durand, Beckman, Cook and Christopher Pettengill had been equal partners in a separate Minneapolis firm called Oxford Global Advisors, which operated out of the Van Dusen mansion near downtown Minneapolis. The two firms spun off a confusing plethora of related entities with either Oxford, Universal Brokerage or UBS in their names. (None was related to the international banking giant UBS AG.)

Cook, 39, has admitted to being the chief organizer. Pettengill, 54, of Plymouth, pleaded guilty in June to charges of securities fraud, wire fraud, conspiracy and money laundering. He's cooperating in the investigation and awaits sentencing.

The indictment charges Beckman, Durand and Kiley with conspiracy, 11 counts of mail and wire fraud, and six counts of money laundering. Kiley and Beckman were released on unsecured bonds of $100,000 and placed on special restrictions barring them from making financial transactions on behalf of themselves or others without the government's approval, and barring them from contacting investors.

Kiley: 'Not a flight risk'

Assistant U.S. Attorney Tracy Perzel asked for the restrictions, saying she considered the men a significant flight risk.

In court, Kiley told U.S. Magistrate Judge Jeffrey Keyes that he had "probably $9 to $10" in the bank, $11 in cash and an as-yet uncashed Social Security check, "which I live off of."

"I am not a flight risk," Kiley insisted. "I have no transportation. Will I be able to get a ride home?" he asked.

Beckman seemed surprised by Perzel's comments. He had said earlier in the hearing that he wanted an attorney appointed for him as he had just "two-thousand dollars, maybe, in the bank," and the rest of his assets were tied up in a receivership.

According to the indictment, Beckman, Durand, Kiley and Pettengill misled investors to gain their confidence. As an example, it says that Beckman, a licensed securities broker, falsely claimed that Morningstar had rated him a top money manager.

In an interview this month, Beckman explained that his firm had compared its own performance against mutual funds in Morningstar's database. He acknowledged that calling that analysis a Morningstar study could be read more than one way. "Should there have been a better disclosure on the bottom? Well, OK, obviously, since there was confusion, sure," he said.

But Beckman said he thought that Cook's "currency arbitrage" strategy was legitimate. He noted that he invested his own and his family's money in the scheme. He blamed Pettengill for getting him involved and said he's spent everything he had trying to investigate where the money went in an effort to get it back.

"We got bamboozled by these worldly guys," said Beckman's wife, Hollie. After the hearing, she predicted that prosecutors will ultimately look incompetent, because her husband is innocent.

Dan Browning •

LINK

LINK

_Avoid Scams

Scam artists use clever schemes to defraud millions of people around the globe each year. Being on guard online can help you maximize the benefits of the internet and minimize your chance of being defrauded. Learn how to recognize common scams and what you can do to avoid them.


Avoiding Online Scams
Ten steps you can take to avoid scams
http://onguardonline.gov/articles/0001-avoiding-online-scams

Common Online Scams
Tricks that con artists use to get people to send them money
http://onguardonline.gov/articles/0002-common-online-scams

Spam
What you can do to reduce unwanted commercial emails
http://onguardonline.gov/articles/0038-spam

Phishing
What to do about messages that ask for your personal information
http://onguardonline.gov/articles/0003-phishing

Money Transfer Scams
Scammers often insist on money transfers for payment because wiring money is like sending cash: Once it's gone, you can't get it back
http://onguardonline.gov/articles/0007-money-transfer-scams

Online Dating Scams
Signs that your online love is a scam artist
http://onguardonline.gov/articles/0004-online-dating-scams

Online Penny Auctions
Tips to help you understand how penny auctions work and recognize the pitfalls before you lose any money
http://onguardonline.gov/articles/0037-online-penny-auctions

Identity Theft
If you believe your personal information has been lost or stolen, there are steps you can take to minimize the damage
http://onguardonline.gov/articles/0005-identity-theft

Tax-Related Identity Theft
Warning signs that an identity thief has used your social security number for tax purposes and what to do about it
http://onguardonline.gov/articles/0008-tax-related-identity-theft

Work-at-Home Scams
Bogus ads often promise steady income for minimal labor
http://onguardonline.gov/articles/0002a-work-home-scams

Weight Loss Claims
Weight loss gimmicks that promise more than they can deliver
http://onguardonline.gov/articles/0002b-weight-loss-claims

Lotteries and Sweepstakes Scams
Have to pay to get your prize? It’s a scam.
http://onguardonline.gov/articles/0002c-lotteries-and-sweepstakes-scams

Fake Check Scams
A fake check can take weeks to uncover – and cost you a fortune
http://onguardonline.gov/articles/0002d-fake-check-scams

Imposter Scams
Tips to help you spot a scammer impersonating a friend or relative
http://onguardonline.gov/articles/0002e-imposter-scams

Mystery Shopper Scams
Interested in mystery shopping? Distinguish real opportunities from bogus offers
http://onguardonline.gov/articles/0002f-mystery-shopper-scams


Bogus Apartment Rentals
Looking for an apartment? Look out for bogus listings.
http://onguardonline.gov/articles/0002g-bogus-apartment-rentals

Miracle Cures
Health products that overpromise usually under-deliver. Here’s why.
http://onguardonline.gov/articles/0002h-miracle-cures

Debt Relief Scams
Some debt relief offers are code for bankruptcy
http://onguardonline.gov/articles/0002i-debt-relief-scams

Pay-in-Advance Credit Offers
Legitimate lenders don’t guarantee you credit – or require large upfront fees – before you apply'
http://onguardonline.gov/articles/0002j-pay-advance-credit-offers

Investment Schemes
Signs that a “low risk” investment is really a sham
http://onguardonline.gov/articles/0002k-investment-schemes

The “Nigerian” Email Scam
Don’t believe strangers who offer “big rewards” to help them move money out of a foreign country
http://onguardonline.gov/articles/0002l-nigerian-email-scam

SOURCE LINK

Handling New IRS Foreign Reporting Requirements Without Doing Jail Time 
 
If you have unreported foreign accounts of more than $10,000 and unreported income, you better come clean with the IRS or you could be in a heap of tax trouble, the type that can cost you hundreds of thousands of dollars and even land you in jail.
 
While trading has gone global, the IRS is becoming xenophobic over reporting foreign income and accounts.
 
Americans are trading different types of instruments all around the world. Some trade from U.S. brokerage and bank accounts, but others trade directly through foreign brokers and banks. The U.S. taxes all income, which means it taxes foreign accounts too.
 
The IRS is getting very tough on so-called “tax cheats,” — U.S. taxpayers hiding income and assets in offshore accounts. These include, but are not limited to, foreign-based banks, brokerage firms, and some retirement funds, entities and trusts.
 
Hiding offshore income or just didn’t know to report it?
 
While some Americans set up offshore bank accounts in clandestine ways to purposely cheat the IRS and others including creditors, investors, customers, and spouses, others inadvertently omit reporting offshore bank and brokerage accounts, even though they report this foreign annual income on their income tax returns. These taxpayers don’t even realize they have to file a separate Reports of Foreign Bank and Financial Accounts (FBARs) to the Treasury.
 
In many cases, the group that has reported all income can comply by filing late FBARs and thereby avoid tax penalties. But those taxpayers with both hidden foreign income and foreign accounts face a much greater burden with the IRS. Keep in mind the IRS figures that if you report foreign income, you probably will report the foreign accounts and vice versa.
 
Unfortunately, it’s not easy for the IRS to distinguish between purposely cheating the IRS or inadvertently omitting forms and income. Generally, if a taxpayer hides large amounts of income and related assets offshore over many years, he is likely trying to cheat the IRS.
 
Consider reporting hidden offshore income and accounts under a new IRS program
 
The IRS is offering a second voluntary compliance FBAR reporting program, which ends on Aug. 31, 2011. Its first program ended Oct. 15, 2009 and it drew out many more taxpayers than envisioned.
 
It’s a complex filing and many of those taxpayers are still being sought out, even though they filed by the deadline. It’s a gamble to assume there may be a third program, so it’s wise to consider coming clean and joining this second program before it ends.
 
FBAR reporting includes obvious foreign accounts like bank and brokerage accounts, and the less-obvious ones like foreign mutual funds, foreign pension plans and life insurance. This applies also to individuals with signature or other authority over, but no financial interest in, such accounts/plans (e.g., offshore mutual fund managers). IRS and the Treasury just announced that certain individuals with only signature authority over foreign accounts have a one-year extension to file the FBAR, after the upcoming June 30, 2011 filing deadline. Offshore entities and trusts require special tax reporting too.
 
Don’t put your head in the sand on these tax issues because the consequences are beyond your wildest imagination — possible jail time for willful and very serious cases, plus big payments for all sorts of penalties, interest, and back taxes. That’s why I say xenophobia, because it’s that scary and attacking.
 
Congress and the administration are backing the IRS here to “close the tax gap.” They agree they should first improve the current rates and rules before resorting to raising tax rates, which is viewed as a third-rail of politics for Republicans.
 
Forget about trying to sneak in amended income tax returns to report hidden foreign income with late FBARs. The IRS made it clear that “quiet disclosure” of hidden offshore income won’t work. The IRS crafted its voluntary compliance program as a “my way or the highway” program.

LINK

Tax Scams - How to Recognize and Avoid Them  


http://www.irs.gov/businesses/small/article/0,,id=106788,00.html 

How to Check out Trusts & Schemes Abusive Trust Tax Evasion Schemes
Facts and Info

http://www.irs.gov/businesses/small/article/0,,id=106535,00.html 
 

FTC Tips: Money Matters Tips from the FTC: Scam & Fraud Alerts
Scam & Fraud Alerts
 
The predators are coming out of the woodwork: scam artists follow the headlines, and news about tight credit, foreclosures, and layoffs has given them a new lease on life. Through ads in the newspapers, on the Internet and on TV and radio, they’re preying on people’s anxiety and working hard to get them to part with their money.
 
These crooks are really good liars: Their claims are just good enough to be believable; their services and products just practical enough to seem legitimate. Some even try to look like a government agency to enhance their credibility.

So how is someone supposed to know whether a product, service, or offer is legitimate? Count on the fact that the FTC is working the law enforcement front to stop them. At the same time, the agency is counting on consumers to know how to spot, stop and avoid them. Here’s a road map to recognizing the kinds of scams people have reported:
 
http://www.ftc.gov/bcp/edu/microsites/moneymatters/scam-watch.shtml
    

FTC: Consumer Education; Scams & Frauds
About the Campaign
 
The FTC has a new consumer education campaign to educate consumers about fraudulent and deceptive telemarketing, and how they can protect themselves.
 
The Who's Calling? Recognize & Report Phone Fraud campaign gives consumers information and resources to avoid telemarketing fraud. It is built on three R's. The three R's:
 
Recognize: Learn how to identify the most common telemarketing scams, and how to stop them.
 
Report: Report fraud to the FTC, because providing information helps law enforcement bring scammers to justice.
 
Register: Place your phone number on the National Do Not Call Registry for a tried and true way to stop most unwanted telemarketing calls.
 
ftc.gov/phonefraud provides consumers with easy access to information on a variety of telemarketing scam categories, including:
 
Buying Club Memberships
Charities & Fundraising Fraud
Credit & Loan Offers
Government Grant Scams
Identity Theft & Telemarketing
Medical Discount Plans
Reloading Scams
Sweepstakes & Lotteries
Travel Scams
Work-at-Home & Business Opportunities
Elements of the Who's Calling? campaign include:
 
Tips to recognizing the tell-tale signs of telemarketing fraud
Videos on recognizing telemarketing fraud and how to get off the phone, and how to register for the National Do Not Call Registry
Information on how and where to report telemarketing fraud
Resources for media
Partner Tools
 
The Partner Resources page is a one-stop source for tools and materials to educate consumers you know, including:
 
Web items like badges and graphics with content you can place on your organization's website or your e-newsletters.
 
A campaign brochure that outlines assorted types of telemarketing fraud, warning signs of potential fraud, and steps consumers can take to avoid it.
Links to additional fraud-specific fact sheets and information to help you communicate with your audiences about signs of potentially fraudulent telemarketing.
 
For more information about the Who's Calling? campaign or suggestions for partner tools, email outreach@ftc.gov

http://www.ftc.gov/bcp/edu/microsites/phonefraud/about.shtml