Nowadays, there is no lack of scammers and con-artists in all parts of the world. These opportunists are ready to get their hands on your hard-earned money should you fall for their modus operandi. Below is an example such a scam, since the best way to be avoid being a victim is being well-informed.
There are three key factors that make business fraud work. Number 1 of course, is the conman who always, always knows how to talk his way into your pockets. Second on the list is the target, or mark, who is willing to put out cash. Finally, there is the product/service that seems legit, which the conman will tell you has a lucrative earning potential, which of course would require some cash from the mark.
Last February, several foreigners in Costa Rica were arrested because of such a scam. John White, Michael Deevy and several others setup several “corporations” that at first glance seemed to be actual established businesses (USA Beverages Inc, Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Nation West Distribution Company), and setup several offices Florida, New Mexico, Nevada, Philadelphia, and Denver.
What they did was entice their victims, saying that if they invest no less than $10,000 dollars, then the returns would be quite substantial. These “corporations,” which looked and sounded like well established businesses, when in fact these were only established for several months, and when they have filled their pockets, would close these “corporations” and establish another one with yet another well-named, seemingly legit operation. Investigators stated that White, Deevy, and their group had been at it since 2005, and many American investors have been victimized. They did all these damage via telemarketing, emails, and funds were wire transferred. All these were done while they were based in Costa Rica with the occasional trip to their various “offices.”
So how do you avoid being duped in a similar scam? Well the best way to do so is equipping yourself with the right information. Do a thorough research before investing. If a business opportunity seems too good to be true, then chances are it’s actually a scam. Consult several trusted lawyers to look into these companies before committing your cash.