Saturday, 8 December 2012

The Voice - Consumer's Voice

Dear Consumer’s Voice

I need to check the authenticity of a certain Regina Horley who claims to be a business investor who can give businesses loans to finance their businesses. A friend of mine got her connections from Linkedin network. She promised to lend him a whopping $10,000,000 to finance his business. Her address is 3630 Gatlin Dr, Rockledge FI, in Florida.

Thank you in advance.

This is certainly the beginning of a scam. It's simply NOT how loans operate. Total strangers on the internet do NOT lend people money and they certainly don’t lend millions of dollars to people they’ve never met.

Her LinkedIn profile is itself very dubious. It says she works for the Federal Reserve Board, but is a "Private Investor (General Financing)". The Federal Reserve Board isn't an organisation that lends money to people, it's just the Board of the Federal Reserve Bank in the USA.

There is no doubt that this is an "advance fee" scam. Before your friend gets the enormous "loan" (which of course doesn't exist) he'll be required to pay a fee in advance. That fee is what the whole scam is about. If he pays that first fee you can be sure that there will be another fee and then another until he runs out of money or realizes his mistake. It will be too late by then. The money will have gone forever. Nobody EVER gets refunds from scammers!

Please encourage your friend not to pursue this any further!

EurexTrade Update

I’ve lost count of the people who’ve contacted us in the last few months about a so-called investment scheme called EurexTrade. I’ve heard probably of dozens of people who have invested anything from P1,000 to P500,000 in this scheme. They’ve heard stories of people making enormous returns on their “investment” and of people becoming rich, or so they think.

The problem is that EurexTrade is a Ponzi scheme. Some of the investment you make when you join this scheme is paid directly to the people who joined before you. The people who join after you are paid some of your joining fee. There are no actual investments in a Ponzi scheme, it’s just “robbing Peter to pay Paul”. What’s more, the payments you receive are almost always just payments on a computer screen, you don’t actually get the cash in your hand. Even if you do get a small amount it will be tiny compared to the amount you gave them.

One curious thing is that this is a scheme focused largely on Botswana. Around a half of all the contacts they list on their web site have phone numbers starting with “+267”, even the ones for neighboring countries like Lesotho, Namibia, South Africa and Zimbabwe.

A little detective work comes up with some curious things. The companies who own EurexTrade which is itself based in Panama, are based in the British Virgin Islands, a renowned tax home for dodgy companies. These parent companies have a very checkered history. They’ve been involved in running guns to Sudan from Eastern Europe, appear to have been involved in various corrupt practices in Ukraine and were reported to have run a previous Ponzi scheme called Rockford Funding which, according to the US Securities and Exchange Commission stole over $100 million from it’s victims.

My recommendation is simple. If you’ve already given EurexTrade money do whatever you can to get it back. I’m not sure if you’ll manage to but at least try. If you’re considering handing over your money DO NOT DO THIS. Please, don’t.


Sergeant Dubula and Constables Moduke and Kgakaka from Old Naledi Police Station who were all “reassuring, helpful, comforting, efficient and knowledgeable” to the victim of a crime.

Keep the celebrations coming in!

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