Sunday, August 22, 2010

Bank Instrument Leasing and Letter of Credit Scams

This one has been a long time coming.

If you have paid money to anyone for a service like this, and are still waiting for the desired result, call me in complete confidence.  I can usually help if you move quickly enough.

Bank instrument scams are usually offered to any of the following
  • Those looking for large project financing for which they can not qualify
  • Those in control where large sums of cash are held on deposit (e.g: escrow companies, corporate treasurers, etc)
  • Those who think they may have influence on those who control where large sums are held on deposit, or;
  • Those who hold themselves out to be any kind of financial broker
  • Legitimate investors seeking high returns

Bank instrument leasing scams come in a variety of looks, shapes, sizes and descriptions. The verbiage used to hook the mark into the scam can vary as well. Typical examples include:
  • HYIP or High Yield Investment Programs
  • HYTP or High Yield Trading Programs
  • Platform trading programs
  • MTN or Medium Term Note trading programs
  • Bank instrument trading programs
  • Credit enhancement programs
  • Sinking fund programs

These programs represent the most sophisticated misdirection techniques I have ever seen, as well as what I suspect are the most successful in history.  Virtually all of them involve duping the mark, and often the brokers too, into believing that a balance showing on a statement is something more than what it is.  Various real bank instruments are used for this con.  Some of these instruments are:
  • SWIFT MT799
  • SWIFT MT760
  • Letter of Credit  or LC
  • Standby Letter of Credit
  • Medium Term Banknote
  • Bank Instrument

By some estimates, this scam has existed for 30 years.  I first saw it 15 years ago, and have been approached with more of them every year since.  By now it has developed its own vernacular.  Some of the terms used by the practitioners of these scams are:
  • "Top 25 bank"
  • "Trader"
  • "Platform Trader"
  • "High Yield Investment Program"
  • "Show Money"

The specifics of each of the scams included in this breed is a thick book I've yet to write.  Let's hope it becomes history before I ever have the chance.  I will summarize for your here.

If you have paid any funds whatsoever toward the objective of leasing a bank instrument, you won't see it again.  If you see anything, it is the proceeds of others who bought into the same scam, and a perpetrator paying you to keep you quiet while he does it again.

It's a scam. 

If you have paid funds for such a service, and are getting delay after delay, feel free to reach out to me using the information to the right. 

Don't be embarrassed.  Some very sophisticated people have done the same.  

If there is any potential of getting your funds back, I can help.  Move quickly!



I offer no legal advice and charge no fee.  Nothing herein shall be considered an offer of any legal service whatsoever.