Here is another story of loss from the three types of scams we have been following.
We have been studying three types of scams, (Ponzi, African Sob Stories and Offshore trust Rackets). Recently an email member asked me the following question about them.
"Gary, THANK YOU for what you are doing to help us GROW IN THE RIGHT
KNOWLEDGE that is a must nowaday!
I found your recent info on TRUST very important to me. CAN YOU E-MAIL
ME your smarts about the "COMMON WEALTH TRUST"? Is this one a SECURE
one to invest your money in? IS IT A STRONG ONE?
YOUR REPLY IN VERY MUCH NEEDED HERE, AND MOST APPRECIATED
Respectfully, "WORRED" Today's date is: May 24, 2001 (I'M in CA)
Here was my reply.
“Esther, I believe you will find the term Commonwealth trusts are used by promoters who offer trusts under false conditions and that if scrutinized they will not work. I am passing this to our eclub advisors Joe Cox and Leslie Share who are attorneys to confirm this. Be careful!”
Both the eClub advisors replied within the day. Here is what they wrote:
“Gary–I'm not familiar with the term “commonwealth trust” specifically (other than the Delaware trust company with that name). However, if this is another name for the notorious “pure trust” or “constitutional trust” (i.e., old wine in a new bottle), it's obviously a scam.
Leslie A. Share, Esq.
Packman Neuwahl & Rosenberg
Joe Cox added his advise as well.
“Gary, you are correct. These trusts offer NO advantage and are used by promoters.”
Cox & Nici
The ending of this exchange brought bittersweet news when the reader wrote to us again.
THANKS AGAIN HERE GARY:
Lesile A. Share is VERY CORRECT, THIS IS A "PURE TRUST ORGANIZATION", the
name of this company that provides this trust service is called
"COMMONWEALTH TRUST COMPANY".
THANK YOU for supplying me with feed back on my question about the
"COMMONWEALTH TRUST" in such an expeditious manner!! I' tell EVERY E-CLUB
member that we are truely fortunate to be where we are RIGHT NOW....with
Mr. Gary A. Scott, and E-CLUB!!
Over the past years we have been fed so much of misinformation on trusts it
it is unreal!!! Not to mention the loss of hard earned monies. We are just
BLESSED beyound measures by "E-CLUB, and this can NEVER be over stated!
I paid $2,525.00 for one in 1999, and was planning this year to establish
my IBC which would have cost me $5,700.00. Then this "so- called"
"COMMONWEALTH COMPANY" OFFERED a Private Trust Company for about the same
price as the "Common Wealth Trust"!
Gary, PLEASE DIRECT me to someone whom you have CONFIDENCE in, that can
implement a GOOD, SECURE, AND STRONG TRUST. One that can WITHIN STAND AN
ATTACK by the "system" as we NOW know it! Securing my family's future in of
the UPMOST IMPORTANCE to me! Also my every day doing business, I am much
comfortable operating through a trust, and keeping everything out of my
name. PLEASE DO share my questions of concern about this type of trust with
all my co-E Club Comrades, because I know for a fact a lot of us have
really been "HAD" out here in California with just this "MESS"!! THANK YOU
AGAIN, and awaiting your info on a good contact source to do my trust over
again! Signed, "Worried"
This is bittersweet because we hate to see our reader lose $2,525 setting up this trust, but are delighted we helped her avoid losing another $5,700. Most sweet is the fact that this information may help her avoid going to jail! The IRS has taken a very aggressive stance on these promoters and their clients even if they are innocent victims. Her risk would have been that when the IRS strikes against Commonwealth Trust, they will get the client list and investigate (and prosecute) the clients using the trusts.
If you are looking at using trusts, overseas corporations and such be sure you have an experienced professional who advises you. I recommend our two eClub advisors, Joe Cox and Leslie Share. I have worked with them for nearly 20 years and cannot speak highly enough about them. If you are an eClub member please ask us when you have doubts about banking, corporate structure, etc. before you lay out your hard earned bucks!
Joe (and his wife Justyn and who is a PhD. in marital therapy) will conduct a weekend course here at the farm this upcoming Fri.-Sun., Aug. 3-5 entitled Partners in Wealth. This course includes full details on tax and estate planning, plus how partners (marriage and business) can bring greater profit and protection. This covers one of the least looked at yet most important aspects of asset protection there is.
Merri and I hope to meet you here on farm, but if you cannot make it, keep sending in your questions. We love being able to help!
Until next message, good global business and investing!