How to Complete “Due Diligence” if Investing in Private Placement
When considering a private placement program, you always need to be skeptical of the people offering the opportunity. Since there are only a few traders in the world, the chances of you finding even one real trader are pretty small. Unfortunately, most people looking for a program have the odds stacked against them from the beginning. With this in mind, we felt it was critical to explain common methods of “vetting” a private placement trader.
Private Placement Due Diligence Tips
1. Trust your Instinct
Always trust your gut feeling on the trader, and never let “high returns” distract you from the transaction at hand. Also, be careful when trusting your “gut feeling”, and make sure you are following common sense, rather than greed and hope.
2. Trader Experience
When you first speak with the trader, ask him about his background, and what lead him to become a trader of bank instruments. If you are well versed in finance or private placement, it should be rather easy to tell who has legitimate experience, and who doesn’t. Also, ask them how they developed such unique relationships with top banks, and exactly how the profits are generated in these transactions. If you hit them with a number of questions, there is usually an obvious stumbling point that you may need to examine further.
3. Estimated Profits
If you ever hear a private placement trader “guaranteeing” profits, then hang up the phone. No one by law can guarantee specific profits in a private placement transaction, they can only state historical returns. Though it may sound like the opportunity of a lifetime, it isn’t. Think about it, if they really were a legitimate trader that managed millions of dollars, they wouldn’t be breaking the law for just one more client. Also, if you ever hear someone speak of returns higher than 50% per week, no matter what the size of the deal (ex. 10 B), it is likely to fail. As you know there is an economic slump, especially in the international banking system, which has lead to smaller margins on trades, leading to smaller net profits to clients.
4. Business Standing
When you speak to the trader, collect their business information and the state they are incorporated in. Once you receive this information you can check the Secretary of State website, and make sure they are a legitimate business. At that time, it is also important to see how long they have been in business, and who the officers are under that corporation. Once you retrieve the information of everyone with legal interest in the company, you can then make sure there are no pending legal suits against them, and proceed to background checks.
5. Background Check
Once you have the information of the PPP trader and company, it would be in your best interest to use whatever sources you can to complete a thorough background check. This check should be on not only the trader, but the others who are registered with the trader’s company. Also, it would be a good idea to check out the closest people to the trader who introduced you to the transaction.
6. Trader’s Country of Origin
If the trader is located within the USA, then you have a much better chance to recover any damages if something were to happen. On the other hand, if the trader is located in Europe or overseas, it may be much tougher to organize and win a court battle, especially if you are not a European citizen. In essence, your money is basically lost if something was to happen with a private overseas investment.
7. Trading Banks Involved
To complete the transaction, you will need to most likely SWIFT, or block funds in favor of the trader’s account. If there is a big name bank involved that’s a plus, but most of the time the trading bank is not huge (ex. not UBS/ HSBC). If there are smaller less known banks involved, don’t be worried, it’s normal. The most important aspect to focus on is the country of the bank, if it is backed by other banks, its history, and the banks size in relation to other banks in that country. This will give you an idea if something disingenuous may be ready to occur, or if you are clear to move forward.
8. Change in Program Procedures
Make sure that the original process the trader described is the process you are completing. In many fake private placement programs, the “trader” or brokers may use the “bait and switch” technique. For those who don’t understand this strategy, it involves explaining program details in a biased manor which makes the client feel extremely comfortable, and then switching around the final steps at the last second. Needless to say, this is dangerous, and is usually associated with fake private placement programs.
9. Private Placement Contract
Typically a private placement contract is a Joint Venture agreement where the trader gets a certain % of the profits(30-50%). The thing is, the contract has no references to specific returns, and usually is rather vague as to the responsibilities of the trader, and what they are trading. Once again, this is a sticking point for some clients, but if you understand the laws associated with private placement programs, you would understand why the contract is structured this way.
10. The First Few Payments
You will never know if you have a real private placement program until it has paid out far more than the principal that has been blocked, or conditionally assigned. With this in mind, don’t celebrate until you reached this point, and always be diligent with your attention to detail. The basic rule of thumb is if the transaction isn’t smooth from the beginning, it is likely to fail in the end.
In summary, the private nature of these programs may make some feel uncomfortable, but the opportunity is out there to be seized. If you are interested in searching for the right trader, just refer to the tips above, and you will be armed with information that will make your search far more efficient.
Be careful, and remember to follow your common sense, not hope and dollar signs!
InsideTrade LLC
(412) 235-2855
Hi, cool post. I have been wondering about this topic,so thanks for writing.
Do private placement program traders have to be licensed or regulated by the SEC? If someone can let me know, that would be great…
I am in a deal right now, and can not find the trader’s information under any regulatory body…
Is this usual?
Thanks in advance.
Janice
I can not to find the company’s information too.
Does anyone know anything about Novergy International SA and about ATLAS FINANZ S.A. BVBA INTERNATIONAL BUSINESS COMPANY?
===================================================
ATLAS FINANZ S.A. BVBA INTERNATIONAL BUSINESS COMPANY
Registered Office:
HENNEPVELDWEG 3 ? B-3520 ZONHOVEN ? BELGIUM
Company & VAT No.: 446.585.921
Contact : Reekmans
Tel. +32 (0)11 744891
Fax +32 (0)11 813310
Email freddy.reekmans@pandora.be
===================================================
Novergy International SA
45 – 47 route ‘d Arlon
Luxembourg, Luxembourg
Luxembourg 1140
# Tel : 352-9224-2258 / 32-497-211-255
# Fax : 32-9-2242-258
Contact :
Mr. Peter D. Lippens
president cfo, head quarters
====================================================
Let me know, please.
hi
So how to find a good trader ? where ? I’m fade up of scam .
If anybody serious can help me , I would like to be in a real and serious network .
Kind regards.
First ,Great websites and blogs.
If anybody can give any real sources to PPP.
Pls don’t hesitate to e-mail me.
commercialfundings@gmail.com
Thx
i can give you direct access to these platforms please email me sayed@saygem.co.uk
“No one by law can guarantee specific profits in a private placement transaction, they can only state historical returns.”
This is only true for USA traders, European traders can guarantee profits.
send me an e-mail to set up a phone call.
kal147258369@yahoo.com
I have access to a PPT platform that has a track record of success, and can start from $1M.
If you are interested, please contact me.
Thank you,
Mike
My company is researching several trade groups and we would like to know if anyone can present the top three performing groups. Also, what data do you have to substantiate and prove the claim that these top three groups are in fact top performers. Your help is greatly appreciated.
[...] Due Diligence: Phrase referring to the process of qualifying people by verifying and investigating their background. This is used mutually by private placement traders and investors. [...]
Where can you find the laws regarding PPP programs , such as what can be stated returns etc.
Contact me – danieljorge@live.com or skype -> daniel.jorge.oliveira
Thank you
Daniel Jorge
Hi Alexander,
I can give you some information about these companies.
You can reach me at marshalcapital@gmail.com
Have you found a good forex trader? Please Help if so! Thanks Tyler
Need to find a good forex trader thats making 5-10% a month does anyone know of one? Thanks
tyroberts1010@infowest.com is my email for good forex trader!
Mike – you did not leave any contact information?
I have several clients interested in PPP.
My email is cityvuefinance@gmail.com
Forex trader edeals1@gmail.com please send your request.
I have a great forex trader who has a satallite that is giving him few secs lead time on news before it hits the market. He trades fundies only. 25k turned into 67k in 4 months. 6% loss record. Losing trades, no losing months. 6 yrs experience. jd4eva645@gmail.com
Jaime, this is incorrect. News is filtered to all traders via Bloomberg, Reuters, CQG etc. The time difference you mention is nonsense. Traders news feeds are measured in milisecs and not secs, this does not represent any advantage to any traders. If he is producing those returns he is either a good trader with a good audited track record from the exchanges or is lucky!
Due diligence is tough to do in private placement, but not really in forex and futures if you have experience. Does anyone have any other tips on how to perform due diligence in private placement? Let us know.
The very name Private Placement has been coopted by a bunch of sychophant con artists. It used to stand for a private stock or bond offering made by an upstart company, in equity or debentures, to build out a business plan, prior to a public offering, allowing early investors to cash out if desired. What does the name mean now? Some esoteric paper shuffling done by about 200 people in the UNIVERSE and now polluted by paniced mortgage brokers looking to replace lost income. The banking industry and investors desiring to be conned are ruining the United States.
And the good guys can't find any money for a good idea. Me for example. I am a registered broker/dealer, hold a half dozen securities licenses, have a crystal clear record with FINRA and the SEC. I have been in the high frequency trading business as a founder and developer for over nine years. Now all of a sudden it's the hottest thing on Wall Street. I have reinvested my earnings developing an incredible trading platform (that's another term that's been corrupted) which we wrote from scratch. This is real software, servers, etc. It is capable of trading in nanoseconds and was tested live connected directly to NASDAQ while co-located at its data center. The algrorithms (strategies) we simulate are flat out brilliant and unlike anything i've seen out there. And our simulators are not rinky dink toys. Just one days trade data coming out of NASDAQ can be over 10GB in file size. Do you think I can raise a single dime? Everyone thinks its a scam You have no idea how frustrating reading these reals scams and cons is to me. All the money wasted. Sickening.
Laughable. You will never find a forex trader to the public who makes such returns. You may find some guy who works out of his basement with nice screens and a twinkling display. They may have a good week or a month. Rest assured you will be wiped out unless you set a strict limit on your losses. You should NEVER allow a trader more than a 25% drawdown. EVER. If you loose 25% of your money, if you do, or their simulations show you have to take such a draw down to achieve gains, get out. Better yet, don't get in.
Lucky? Maybe. Delusional, yes. The only speed advantage a forex trader would ever have is if he/she colocated a server of their own at a data center of a network aggregator with a smart router which routes his/her order to the best available offer from the banks, or better yet, build his/her own software interface directly into a few banks using the banks published APIs (specifications), and build a smart router for him or herself. Anyone want to do this? I'm your man. I build it all out for you. Even code your magic strategies using C++.
DOES NOT TRADE THE MARKET USING
TECHNICAL CHARTS !!!!
HE TRADES FUNDAMENTAL ANNOUNCEMENTS
ONLY ( THAT IS THE IMPORTANT ECONOMIC NEWS
RELEASED SEVERAL TIMES WEEKLY THAT GREATLY
INFLUENCES THE VALUE OF EACH COUNTRY’S CURRENCY).
HE GETS THE NEWS OVER AN EXPENSIVE SATELLITE LINK AT
THE SAME TIME AS THE NEWS ORGANIZATIONS. This gives
him a few seconds advantage over the rest of the market
waiting for the news media to then announce the news.
The trader has been able to do this over the past few months because:
1. liquidity had improved in the market and FXCM is filling his trades
2. The new interface that FXCM provided for him allows him to "pre-pepare" numerous trades to fit the different news scenarios, and then fire the trades directly into the FXCM SERVER for instant filling.
Yes, I am interested in accessing a PPT platform that has a good track record
Aleksandr Good Day, My very good friend is about to sighn contract with ATLAS FINANZ S.A. ? What information can share about them??
Hi Tyler,
my sister is a very good Forex Trader and i have seen how she makes these numbers,
please contact me at : ilanbloi@bezeqint.net
If yo have data to prove your claims, then please contact me for details, airdr@hotmail.com
[...] extremely tough to screen, and even harder to succeed with. Over the last 10 years the once unknown private placement business has spread all over the internet, which has lead to a flood of inexperienced brokers into [...]
Mike , I am interested and can bring capital to table. I would love to be a part of a PPT platform and see a track record. Contact me at rcjmobile@yahoo.com. Thanks.
Alexander, did you find anything about ATLAS FINANZ S.A. BVBA? And could you share some information about ATLAS FINANZ S.A. BVBA?
Mike is that you KMR
I wouldl like to network with you as well. I am in the process of working on PPP deals. I need a very savy trader. I can be contacted at: contemplate12b@yahoo.com. The sooner we get to work, the better. I look foward to working with you very soon.
Hi Mr.Hart,
Please feel free to contact me on skype-ann.margareth.damsgaard or by mail. margareth.damsgaard@gmail.com
we work directly with top performing platforms in europe and also in Hong kong, if you would like to know more please get in touch
I'm connected to lots of venture folks… Send me an email at Digium@mail.com and I'd be happy to assist you… (Jeff)
would be intrested in learning more.
I have direct connection to PPP experienced trader from Top Ten rated bank in the world. No upfront fee, just email me : aristrader@gmail.com
Hi Mike,
I am interested in your response and would like to know more about accessing a REAL trader with the PPP, which can start at 1M. Thank you.
Sooooo, reading through all these postings and having tried to get to the bottom of it all, spending months of wasted time, it wants to appear there is no REAL "trade group", "trader", "platform" – and whatever-else-you-got. It seems all shady, fuzzy, watered down by joker/brokers trying to make a quick buck off some greedy "investor".
Now, having said all this: I am an investor myself, 1 Million €/$? Got that. 10M €/$? Got that much as well. I trade Forex for a living (40 years), doing well thank you – but age is getting to me and I'd love to have a simpler life ahead of me. I am an adviser to a wealthy non-profit organization as well, they do have cash and assets far beyond my own pittance of cash.
So why does the whole world think that I am submitting my papers with highly sensitive information like CIS and bank statement, with passport copy attached – and all this then accompanied by some non-solicitation letter, request for exclusive service letter, and whatever else they come up with, and ALL THAT ADDRESSED TO SOME GHOST called "program manager". The worst I've come across is the request for +authorization of funds+ and again addressed to a ghost. Does any REAL investor ever do such a stupid thing? What do you think MY bank is telling me when some unknown entity or street broker calls the bank anonymously to verify the balance in my account? Then they possibly send in my letter to the ghost authorizing him to verify – and my banker will instantly call the nut house and have me locked up – and rightly so, for my own protection.
I send out my information – and I want to KNOW who gets it, I want to KNOW what that persons relationship is to the "platform" – platform being about the fuzziest term I have ever come across. Anyone, so it appears, can "create" and call it a platform out of thin air, I believe I could do so myself.
Someone educate me here, I am just a little guy with little cash compared to all these high rollers commanding hundreds of millions – but my cash is REAL and I worked hard for it in the last 40 years. It does not mean I lost my senses of what is right or wrong, and I fiercely protect myself.
Someone let me know about something REAL and something I can hang my hat on?
mangionegri@gmail.com
Sooooo, reading through all these postings and having tried to get to the bottom of it all, spending months of wasted time, it wants to appear there is no REAL "trade group", "trader", "platform" – and whatever-else-you-got. It seems all shady, fuzzy, watered down by joker/brokers trying to make a quick buck off some greedy and/or naive "investor".
Since I am not a broker but rather an investor, I care for my money. So this all starts with 1 M in €/$? Got that. 10 M? Got that too. I am a forex trader for 30 odd years and doing very well thank you. This is MY MONEY – and I am adviser to a non-profit organisation that has much more than my pittance of money.
So why would an investor send his documents to some ghost who calls himself "program manager"? Why would I allow such unknown entity to "verify funds"? You know what my banker would do if he discovered that? For my own protection he'd call the Psych ward and have me put away – and he'd be right to do so.
Can anyone enlighten me on this anonymous stuff? What is a "program manager" with no name? What do you consider a "platform"? That is about the fuzziest thing I have ever come across. Seems that anyone can "create" such thing out of thin air…… Everybody is "close" to the platform, all are "next" to the trader – and everybody wants MY PAPERS addressed to ghosts. Who in his sane mind would do such a thing? My account, my info in general is sensitive info – and I won't give it out to just anyone coming along with some claims.
Looking forward to some educational mails – or so I hope. By the way, I am in Europe and would very much love to keep those transactions here as well. With MT 799 and whatever comes along I got no problem, I discussed this already with my banker and the legal department (who share my view by the way) Acchino
mangionegri@gmail.com
You mean to say that you consider FXCM a first rate broker??????? You gotta be kidding me. You can't trade this style, as you claim, if you're not connected to a true ECN/STP, ever.
Dear Sir, I've been seeking to contact direct to a trader. With your background, you seemed to be real, could provide with your contact name, phone number and email so that you can be contacted? Thanks.
What is the risk to the investor's funds in a 40 week programme and why?
DEAR SIR AS A FINANCIAL CONSULTANT FOR A PRIVATE BANK IN LONDON YE YITHOLD OVER THREE TRILLION IN OYN ASSETS AND ONE TRILLION IN LIQUID ASSETS AS FROM NOW PEOPLE MAY ENTER INTO PPP YITH CASH CD OTHER INSTRUMENTS CAN BE REGISTRATED YITH PRIVATE BANK FOR PPP ON TODAY I HAVE OVER 100 CLIENTS YITHHOLDING FIN INSTRUMENTS AND LOGGED THEM YITH OUR BANKWE FINANCE THIS YITHIN 24 H AND PROVIDE SOLID DOUBLE DIGIT RETURNS NONETHELESS PEOPLE MAY HAVE OVER 25 PPP (u.n. fed g7 g8) UNDER THEIR HANDSM YHEN THEY HAVE LEGITIMATE INSTRUMENTS AND COMPLIANCE PLEASE FORYWARD EMAIL OR REQUEST TO CEO.CELTD@GMAIL.COM PS: NOVERGY INTERNATIONAL SA IS NO LONGER ACTIVE, IS A SOLD THE COMPANY IN 2008//
DEAR SIR I AM INTERESTED PLEASE PROVIDE MORE INFO
I sincerely apprecite your website but to find really genuine clients with liquid funds and ready to set aside US$50M & above is not easy cos of the scams going around. What I have are genuine clients who have funds in Asian countries (HK or Singapore) and I can easily arrange to meet their bank officers to personally verify their funds are in the accounts with bank statements to submit. But as these are smaller clients who will not dare to set aside more than US$1M to US$5M of their total assets, its going to be hard to bring them into the bigger established programs. If someone really has a genuine program that can accept these clients, would appreciate an email reply to my email: ignatiusch@yahoo.com.sg
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