A reader reported an incredible scam that can cost you $250,000 or more if you are not aware.
Here is what an alert reader recently shared: Beware!
"Hi gary, l would like to tell you about what seems to be an obvious scam - maybe you could give me your opinion. When l heard of this tale the red flags went up and the alarm bells are still ringing. Only recently l was told, 'on the quiet', about a pile of cash money in an hereto un-named country with currency controls (asia-minor, think curry). The tale starts with a spiritual guru who has amassed this large pile over many years of exploiting gullible followers (or is it gullible currency exporting facilitators). So the story goes, he can't get the money out due to these currency controls, not withstanding the fact that he and his wife cannot return to his country to get at the stash, seeing as he's obviously been a bad little boy. Enter the facilitating (read - money laundering) high income earning, high net worth, highly educated Western professional. He was required to open the bank accounts through which the washing will be done. Saffice to say the only transactions that this account has seen, aside from his money going in and going out, has been for bank charges. Of course he is also required to pay off an endless array of govt. officials. Following a visit to that country by a collegue, who introduced this professional to the 'opportunity', the cash was sited in a storage facility. A pile of shoe boxes was presented from which a random selection was made, all containing cash. Whether it was real or counterfeit (l doubt if a Westerner could tell, at glance) and whether its still there, who can say. And whether it came from the alleged followers of the guru or from the pockets of money laundering facilitators, again, who knows. This was followed by a visit from the guru who stayed at the target's home. On the strength of this incredibly weak due diligence, the western professionals decided to participate. To date, after about one year, approx. half a million oz dollars have gone to 'government officials' involved in the process. l'm guessing that many regular payments have been made, always just one more to 'get them over the line'. Last time the wealthy target had to get some money out of a friend (this is how l found out) who was totally taken in by an offer of a 10:1 return (better chance of making this long shot at the casino). My friend just can't afford this sort of thing. l guess he can rest on the fact that he's not directly involved and has had his relatively mior contribution guaranteed be the professional. (ok if there's anything left when the painful realisation of the obvious sets in). In any event, the guru has taken very ill and is currently in hospital (straight out of the scammers handbook). A fool and his money - don't get me started. Thanks"
Here is my reply:
Dear Friend, Your story rings several scam alarms. Anytime you hear of any deal on the QT, beware. Any time you are enticed to do something illegal (smuggle currency for example) to make money doubly beware. Any time you are shown piles of cash be triply beware! And be smart. When my printer prepares large mailings he knows I always check, only check five letters, but he never knows which boxe I will choose the letters from! This story sounds like a great adventure, but the price looks high. Anyone who wants to play Indiana Jones proceed, but I suspect Indy never became very rich!
A better way to wealth is through your own business. Why not attend my upcoming course and find out why.
Until next message, good global investing!