American Ponzi a new way of removing small business owners of Revenue via financial Fraud

By D'Anne Burley all right reserved July 21, 2010 D'Anne Burley Show

Named after Charles Ponzi, who had a remarkable criminal career in the early 20th century, the term "Ponzi" has been used to describe pyramid arrangements whereby an enterprise makes payments to investors from the proceeds of a later investment rather than from profits of the underlying business

The game today is play by "Using things of value and then creating investment pools from them within various financial markets".

For example, within recent years those involved within these processes used, terms like,

Subordinate

Subordinate, verb: 1. A tool used to finance shortages of upfront cash needed by a buyer or borrower and finance it with your (the sellers) real estate equity. 2. To have your equity dollars take a back seat to, or voluntarily accept a junior position to a new loan being originated for another. Subordination,

1. A double sided blade or potentially dangerous tool more and more commonly being misused these days by a few buyers or builders to finance their shortages of upfront cash in a transaction and finance it with your equity dollars usually in order to buy or build a home with less cash. 2. a misunderstood vehicle being more and more misused by equity skimmers and scam artists to bilk gullible or unknowledgeable people out of their real estate equity before skipping town

2. Within Term Life Insurance policies the owner of any rights under an individual life insurance policy or annuity contract may assign any of those rights, including any right to designate a beneficiary. An assignment which is valid under general contract law vests the assigned rights in the assignee (the person to whom the assignment is made) subject to any provision in the insurance policy or annuity contract inserted to protect the insurer against double payment or obligation.

The rights of the beneficiary under a life insurance policy or annuity contract are subordinate to those of an assignee, unless the beneficiary was effectively designated as an irrevocable beneficiary prior to the assignment.

Credit Default Swap (CDS)

Then within the issue of "Credit Default Swaps" the buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. By doing this, the risk of default is transferred from the holder of the fixed income security to the seller of the swap. For example, the buyer of a credit swap will be entitled to the par value of the bond by the seller of the swap, should the bond default in its coupon payments.

The mortgage was converted and moved in and out of many Option Markets, then used within various stock exchanges and also moved within credit derivative trading.

The Credit Default Swap game was very lucrative for a while but became a high end pyramid scheme once everything began to collapse.

Then the consumer home loans began to fail so did the issuance of the Credit Default Swap and this instrument was not worth the paper it was written on, because there was no insurance ability to cover the loss when Americans began to loss job's and could not afford their mortgage payments.

Now what I have found is a new level of the same type of so-called legal "Until We Get Caught Scheme", which is using Merchant Leasing Agreements (this involves credit acceptance Terminals) whereby the business owner is contacted by business (A) which includes numerous independent businesses and or subcontractors who then act as mules using various sales pitches to convince business owners they need merchant accounts for their business, the "Mules" setup a application form which the business owner is given and or is told about the service by phone, whereby all of their information real or not is placed on the application and then moved throughout the circle of command and created into a Lease, many of the victims tell tales of not seeing any agent, just receiving a call over the phone and then billed, at other points the victims who needed the equipment shared their banking information, such as routing numbers and other account numbers so thus giving them access to their accounts, but what is amazing is that they use a NON Cancellation Agreement but within the form the lease ends within so many months. Then the lease is for equipment which is for about $49-60 whereby all other charges are based on use. This company charges people no matter if they use the equipment have sales or not and the amounts are staggering! Some of the victims complain of money being removed electrically from they're bank account for as much $10k and up. The banking transactions in many cases come after 5-6- 7 yrs whereby no money is ever collected then within the 8 yr they will go into the business owners account and attempt to remove $2,3k in one day and or keep entering in transactions until the business owners account has to be shutdown. There have been complaints from Katrina victims whose businesses washed away in 2005 they have nothing and are in debt because they are being charged fees for machines they don't have. Others having complained of forgery whereby they claim that the so-called merchant account they refused but ended up on paperwork anyway.

 1  |  2