They are quite simple to understand once one knows how they operate but the ordinary, private investor is invariably unacquainted with the sophisticated techniques employed to “con” them out of their money.
The fraud is long and drawn out and relies on the gullibility and to a certain extent the greed of the victim(s). When one is offered a return on an investment very quickly in the region of 100, 200 or even 300% it is difficult not to be tempted!
A typical example of this category of fraud is when the victim is told that he has been especially selected to invest in this “golden” opportunity but confidentiality is of the utmost importance. The Congo needs to borrow US $47 million for infrastructure projects. They have already been offered a loan of that sum by a Swiss bank but the bank is insisting on an arrangement fee of US $2 million before they advance the funds.
The Congo does not have that money to hand but, if a private investor were to advance the US $2 million, then the investor would be repaid directly the loan was advanced and the investor would also receive a US $2 million return on their investment.
The investor subsequently lodges the funds in a solicitor client account but for practical purposes they need to be transferred elsewhere. Eventually, the funds disappear and are alleged to have been stolen by a party or parties unknown.
Surelock have actually investigated such a case, prepared a case file and submitted it to the SFO and Scotland Yard Fraud Squad. The perpetrator was tried at Southwark Crown Court and convicted of conspiracy to defraud.