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Home » PRIVATE PLACEMENT

Monetizing Leased Bank Instruments & Swift Messages: MUST READ!

"Private Placement Update"Over the last few months, I have received plenty of calls about monetizing leased instruments. This is disturbing, since I know that 99.9% of these deals end in lost money. In this short article, we will cover the most common scam in 2013, the “instrument monetization program“. If you haven’t heard of it by now, I’m sure you will soon. Unfortunately, it has spread amongst the broker community like a “plague”….

Steps of the “Monetization Scam”

1. The client looks for a way to attain project funding or enter private placement with less money than is actually required.
2. Broker introduces the idea of leasing a bank instrument/account using swift message confirmations (MT 799, MT 760, MT 103).
3. Broker claims that if the client pays a small fee for this leased asset/Swift MT 760/799/103/etc., a private lender will monetize it, which will fund their project or give them enough money to enter private placement.
4. Client sends fees to swift provider, thinking they can get a LOAN against the swift to fund  project and/or enter private placement, BUT after it’s receipt, the 3rd party “monetization company” or “private placement platform” can not perform.
5. Provider & brokers keep the client’s money since they have provided the service stated in the contract. They then move on to the next client who is under the impression that leased assets/swift messages can be monetized. Big Money!

In most cases, the swift company will do whatever they need to sell their services. In fact, most of them will make is sound like it is very easy to “monetize” the swift message/leased asset. This is how the scheme is designed. If they provide you the swift message services and meet the contract, they can not be held liable if your other deal doesn’t work out.

In summary, this scam is predicated upon the misunderstanding of the monetization process. Think about it this way, if I was to lease a BMW to you, could you take it to the bank and get a loan against it? No, because I still hold the title. The reality is, leased bank instruments are no different. If you are leasing an instrument, it will never be an acceptable form of collateral for banks or private lenders. This is not some theory, it’s common sense…

Please do yourself a favor, and DO NOT get involved in these transactions. Whether you think it can work or not, it’s ALWAYS a waste of your time. The fact is, millions of dollars are lost every year due to this process. Hopefully, by reading this article, you can avoid the disaster before it’s too late…

InsideTrade LLC Staff
Phone:(949) 444-2111
info@insidetradellc.com

3 Comments »

  • jimb6387 said:

    I agree that there are far more scams than real ones. However, it is not accurate to say they are all scams. Your analogy of a leased car not being able to be monetized is not complete. You say it is common sense that you can not monetize a leased car. I beg to differ. It's called SUB-LEASING and it happens in many, many business transactions. Lease a fleet of trucks by the year and rent them by the day or perhaps lease a parking lot and rent out individual spaces. Lease an office by the month and rent out the rooms by the hour.
    You are 99% correct in what you say about scammers in the marketplace but there are legit ways to make money trading financial instruments … you just need to find an honest source. If you don't think trading financial instruments is real, then I suggest you look up "Forex". Cash is just a financial instrument. Done differently, but it is more common.
    BTW … it takes $100MM min to trade on a platform and it is by invitation only and VERY, VERY few real platforms out there.
    There are a lot of scammers in the gold market too. That does not mean that no one is selling gold.
    People need to be warned, but not scared away

  • R H said:

    Hello jimb6387 I agree with your comments in business you can control assets with a lease and make profits. This brings me to the following. Things fell apart trying to lease instrument and get it monetized. Going through the process I thought I had all the pieces to the puzzle. The problem was with this instrument provider. Was I duped very good chance but I like to get a clear understanding on what went actually wrong. Based your comments this can be done if one had an honest source. Being in the M&A field there are people that are very good in deal structuring a purchase and getting a deal closed . While others are not that good or lack of experience or the unreliable contacts. I believe that is the case in bank instrument field. Since you seem to have a solid understanding in this area can I shoot you an email giving the dertails and giving me your input if you have the time. I always want to learn from my experiences so I get it right next time. Thanks

  • Joe said:

    But Jim. Leased Instruments cannot be collateralized. This is the point the article was making. Sure you can sublease on-wards in a chain, but they are only good for increasing balance sheets and not putting real money on the table.

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