MTNs, PPP, LOC, 0% Loans, Commodities and Other Investment Platform Scams and Cons

First, I WILL NOT debate whether or not these platforms or sources of investments are real or not. Let us, for the sake of this article, assume they are real and relevant.


What I want to focus on here, is the huge amount of cons, scams and fraud that are attached to these types of investments. 

I know this article will not make me popular and my site will probably suffer by loosing a lot of traffic, but frankly I do not want this sort of traffic and though I cannot afford to take a traffic hit. I will suffer through in order to make sure I am not in subjecting my members to this level of fraud.

When You Say Huge, What Do You Mean?


According to the International Chamber of Commerce's commercial crime bureau, this type of scam involves $10 million U.S. daily in North America alone. They believe that the millions of dollars in losses reported every year represent only 10% of the total.

It is a crime which flourishes particularly strongly in today's global markets, with its voracious appetite for capital. The ease and speed with which documents and vast sums of money can be exchanged electronically makes vigilance all the more necessary.

There Must Be A Law

A number of prime bank securities fraud cases have been prosecuted by the SEC and federal criminal authorities. For example, one group which raised at least $10 million from a nonprofit corporation through the sale of prime bank notes were subsequently charged with wire fraud, money laundering and conspiracy, with sentences ranging from 11 to 19 years.

Prime bank fraud can currently be prosecuted under a variety of federal criminal statutes such as mail fraud (18 U.S.C. 1341), wire fraud (18 U.S.C. 1343) and conspiracy (18 U.S.C. 371).

Should you require more information on this topic the SEC has a special section devoted to Prime Bank Scams.


To Read More.........


What Investments Are You Talking About?


 ► roll program
 ► bank secured trading program
 ► high-yield investment program
 ► leveraged pool
 ► bank debenture trading program
 ► currency trading program
 ► off balance sheet program
 ► money center instrument purchase and resale program.

which deals in the high-finance world of trading in:

 ► world bank paper
 ► Federal Reserve notes
 ► blocked fund letters
 ► IMF issued bonds
 ► standby letters of credit
 ► prime bank notes, guarantees or debentures
 ► bankers acceptances
 ► Bills of Exchange or Bills of Equity
 ► commercial bank credit lines
 ► irrevocable letters of credit
 ► "zero interest" credit instruments or letters of credit
 ► the arbitrage of senior bank instruments
 ► Medium Term Notes (MTN)
 ► currencies, commodities, gold and other financial instruments.
The Commercial Real Estate Professional Investor Group Site will no longer allow promotions of these types of instruments and will not hesitate to suspend a member that does not comply with this policy. Since there are so many different types of these investments, CREPIG we reserve the right to choose which ones we will, or will not allow on a case by case basis.

PPP Bank Fraud Cases

Over the past few years, a number of reported decisions affirmed convictions of prime bank schemers. For example, this past summer the Fourth Circuit affirmed defendants’ convictions in United States v. Bollin, 264 F.3d 391 (4th Cir. 2001), for conspiracy, wire fraud and money laundering.

In United States v. Polichemi, 201 F.3d 858 aff’d on rehearing, 219 F.3d 698 (7th Cir. 2000), defendants defrauded nearly thirty investors out of more than $15 million by marketing "prime bank instruments," which they described as multimillion-dollar letters of credit issued by the top fifty or one-hundred banks in the world.

In a related case, United States v. Lauer, 148 F.3d 766 (7th Cir. 1998), Lauer, the administrator of an employee pension fund, plead guilty to diverting millions of dollars to the prime bank scheme prosecuted in the Polichemi case.

In another recent case, S.E.C. v. Lauer, 52 F.3d 667, 670 (7th Cir. 1995), Chief Judge Posner declared

Prime Bank Instruments do not exist. So even if [a co -schemer] had succeeded in raising money from additional investors, it would not have pooled their money to buy Prime Bank Instruments. It would either have pocketed all of the money, or, if what its masterminds had in mind was a Ponzi scheme, have pocketed most of the money and paid the rest to the investors to fool them into thinking they were making money and should therefore invest more (or tell their friends to invest).

In United States v. Richards, 204 F.3d 177 (5th Cir. 2000), the Fifth Circuit up held defendants’ convictions for conspiracy, wire fraud, mail fraud and interstate transportation of stolen property. At trial, the government presented the following evidence describing how defendants induced participants to invest in a “roll program”:

In United States v. Rude, 88 F.3d 1538, 1548 (9th Cir. 199 6), defendants were charged with engaging in a prime bank scheme. In affirming their convictions, the Court of Appeals found, among other things, that the government had proved beyond a reasonable doubt "that the very notion of a ‘prime bank note’ was fictitious," and cited other evidence that the term "prime bank" was not used in the financial industry "and was commonly associated with fraud schemes." Id. at 1545.

In Stokes v. United States, No. 97-1627, 2001 WL 29997, at *1 (S.D.N.Y. Jan. 9, 2001), defendant was convicted of conspiracy, wire fraud , money laundering and interstate transportation of fraudulently obtained money.

Read More......

There are other scenarios touting involvement in INFRASTRUCTURE LOANS supposedly guaranteed by the WORLD BANK, the INTERNATIONAL MONETARY FUND, Swiss Banks, PARALLEL ACCOUNTS, FOREIGN CURRENCY EXCHANGE (FOREX), STANDBY LETTERS OF CREDIT (SBLC), and accounts over which the investor supposedly has sole control.. 

In every case funds disappear, which usually involves MONEY LAUNDERING.  So what happens to your money?  

It goes toward paying new investors PONZI-fashion; it goes into travel, scam expenses, yachts, entertaining, jewelry, more scam expenses, houses, bribes, Mercedes-Benzes, gambling, and accounts stashed away in various countries in SHELL ACCOUNTS.  

Read More.......

Does This Sound Familiar?

Again I am not saying that these programs are not real or do not exist in some fashion. Please do not comment back telling me how much I do not understand MTNs or PPP. BG/SBLCs, This is not the point. The point is that there is too much fraud attached to these instruments and so it is better that we do not allow this type of investment on our site.


JW Najarian

CREPIG Founder

Views: 584


You need to be a member of COMMERCIAL REAL ESTATE PROFESSIONALS & INVESTORS GROUP to add comments!


Comment by Andreas Finger on April 9, 2012 at 8:40am

it all comes down to the green ;-)

Yes, 99,99% frauds and scammers in deals like gold, diamonds, commodities, PPP (we really needed a long time to get access to one of the very rare sources), currency exchange, etc. etc. pp.

Some weeks ago I warned on LinkedIn and other platforms and quoted:

Comment by JW Najarian on April 4, 2012 at 11:07am

Thank you John... This spells it out very well, in this case the LC is an instrument that is used across different countries all the time. No argument that they exist, but the level of fraud here is SO HIGH, that we would not be able to in anyway, assure that the person promoting that instrument on this site, were credible.

By the way... No One is vetted on this site so everyone BeWare. There can be fraud in the most seemingly conservative and regular investment. DO YOUR DUE DILIGENCE. Thanks Again.

Comment by John Brandow on April 4, 2012 at 1:42am

Very interesting article.  I have been targeted recently by a Local company (South Africa) claiming to be able to supply us with a standby letter of credit from a bank in Australia.  When an email (obtained from that bank's website) was send to them the local guys contacted me and said that the bank have asked them to attend to my  query.  This made us delve deeper and what did we find ?  The websites had the same owners. Suddenly a local bank was offered as a replacement.  When the pro-forma guarantee arrived the first thing that was obvious is the spelling mistakes and non bank lingo. When we requested the bank to send us the actual guarantee there was suddenly an "upfront" fee payable being an "intermediary fee"   Remember we are the funders.    One thing is very evident : If you do not have the background stay out of this game !

Comment by Sossi Crilly, Crepig Adviser on April 3, 2012 at 6:56pm

Thank you JW for this post, and others on this subject.

Members, if you have at one time or another, hit a snag, or feel there has been abuse, please let the other advisors and myself know immediately, and we will do everything in our power to correct the situation.


On the other hand, when working with someone new, you as a member or entrepreuneur of a business, should do your due-dilligence in doing a background check on the person who you are doing the transaction with.  There are many sites,  social media arenasans, where you can easily find out the person's/company's integrity. And while doing the transaction why not ask for several recommendations.


On the flipside of things... How about some praise reports.  Who has worked with someone here where everything went smoothly.  We would love to hear of some good news.


We, the advisors, Bill Evans, Beth Anne Grib and I are here to hear your concerns, and hope that we can monitor this side, to make your membership an enjoyable, productive one.


Warm regards to all.


Sossi Crilly

Comment by Cheryl Glover on April 3, 2012 at 4:06pm

It goes along with: garbage in, garbage out. Or monetizing garbage is still garbage.

Comment by Michael Christian on April 3, 2012 at 1:18pm

Touche'!  I've been sayin' this for years...


Kudos to you for your position and for posting this.



Comment by JW Najarian on April 3, 2012 at 1:16pm

Thanks W. Faye and Charles, I do have a dear friend that completed some sort of platform deal. It took him years and it was like finding a needle in 100 haystacks. He would not do it again and does not recommend his financial customers and clients get involved. So I will not say all fake, but, I do not know and the majority of investors here, do not know which ones are true, fake, kinda true, halfway fake.

Jeffery, I would like to agree with you, but.... it is not that simple. There is a possibility that in all the ones I listed above, like gold for instance, that there are very reputable investment instruments for major project finance, but there are probably a few that are listed that are complete fraud.

But real or not, the point is that there is so much fraud out there at this sites level of play that I would never recommend anyone do any of these types of investments.

When I say at this site's level I mean that CREPIG does not represent the highest echelon of world class investor so if you are promoting this type of investment here you would be suspect to me. If you can make $100Billion from $10Million in a short time... Why are you trolling members of CREPIG? This just makes no sense to me.

I have known people and have talked to people on this site for years about the various scams that have taken them for everything and one of my closer friends was subject to a major case and he lost everything.

These are not instruments of finance you pick up in the Yellow Pages, Craigslist or CREPIG and many lawyers and high end financial experts have been arrested or even conned by these instruments. That is why only 10% of cases are reported.

I am more apt to believe it is 99.9% crap and would recommend everyone that does not absolutely know what they are doing, stay away.

Comment by Jeffrey Allen on April 3, 2012 at 12:32pm

All this says is some people abuse and manipulate things that are legal and have their positive purpose in major project finance. 

Comment by W. Faye Wilson on April 3, 2012 at 12:19pm

JW, Thank you for having the courage to speak out!

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