“Ping” Programs, Are they Real or Not?
Every day we speak to investors who expect to leave money in their account, and collect huge profits from private placement investments. Where did this false expectation arise from? As usual, it was created by misinformed private placement brokers who wanted to increase the number of new applications. Unfortunately, it did just that, while also creating a false expectation for new clients with interest in private placement.
The idea behind a “PING” private placement program is that the client leaves the money in their own account, and the trading bank checks on it to make sure the full balance is still available. This verification of the funds by the trading bank is referred to as “PINGING” the account, and supposedly is done on a daily or weekly basis to ensure the balance remains stable. This is also the same premise behind an “administrative hold”, which many inexperienced brokers will refer to as well.
For many of the beginners in the business this may make sense in theory, but the problem is simple, THERE IS NO COLLATERAL IN PLACE. For the trader to be able to access discounted bank instruments, they must have liquid collateral to purchase the notes. This liquid collateral MUST be derived from the client’s assets, which are usually blocked or conditionally assigned to the trader for the period of the trade. Once the assets are blocked or assigned to the trader, they can access a line of credit against the client’s collateral, and start trading on behalf of the client to generate profit. Since “PINGING” the account leaves the client’s funds unencumbered and no assets in favor of the trader, the bank will NOT give the trader a line of credit, and therefore, the “program” will more than likely produce excuses, rather than returns.
The fact is, private placement traders always need a form of collateral to access a line of credit, and a “PING” structure does not provide this. Without this line of credit, the bank instrument is never “cut” and trading will never begin. Despite what you are told, EVERY investment has a degree of risk to it, and typically the investments which offer higher potential returns, have higher levels of risk as well.
If you are a reader, and have closed a “PING” transaction in the past, please post your experiences, but after 7+ years of consistent effort, we feel this structure is nothing more than a sign of future disappointment.
InsideTrade LLC Staff
(412) 235-2855
They are right, I have tried to place clients in several ping programs, and none of them have ever worked. MT 760, MT 700, or transferring assets is the only way to get a deal done.
Good luck everyone, and shoot me an email if you are interested in working together. We work in private placement, gold, and crude oil deals.
fgertry11uk@yahoo.com
Damn good job on the private placement program section guys! Im looking forward to articles for the other categories on your site….
Keep em comin….
Gary
Has any one heard of a an Evergreen PPM (ping)? We are dealing with an investor who claims to be in a high yield program and will fund our patented technology within 30 days. I think the above explanation covers it but continue to hear there are some programs that have been very successful and somehow get by the pinging process.Thanks
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Hello Wayne,
As you can see by our article, we have not been successful despite 7 years of efforts. Though this has been our experience, it doesn’t mean you will encounter the same obstacles. If you choose to explore any “ping” programs, DEMAND PROOF of past performance and make sure the “trader” clears your due diligence process.
If you move forward without taking the proper precautions, you will be “rolling the dice”, which is never good, especially with the odds stacked against you as they always are in the private placement business.
Thank you for your comments, and please add more to our growing community when you can. We always welcome questions, and enjoy helping others, especially the readers who post!!!
Thanks for our response. This is truly one of the most confusing financial plays we’ve ever seen. Purportedly some 99% of these platforms don’t pay out or are scams of one kind or another.
What happens to the money that is deposited? 1.Does the investor ultimately get his money back? 2.Does he lose it? If the latter, how is it not out and out fraud.
If the former, it would seem that the bank itself is scamming the investor by using his money during the ‘period’ with impunity and then saying ’sorry, the trade didn’t happen’. Given the 99% failure rate, that too reeks of scam on the part of the banks.
Who initiates the information and dates for the trade?
In our case Barclays, Deutche Bank and other major international banks have been involved and have discussed it with principals. The ‘next week thing has been going on for three years’ One person flew to and stayed in Hong Kong for 4 months waiting for meetings with bankers that never occurred. The same person has had repeated contact with people from the Fed and major banks.
The Treasury Dept says these programs do NOT exist. And yet there is proof that they do but are seldom ‘real’? It would seem that the Treasury Dept is misleading the investment world as well.
A great deal of work goes into the structuring of business opportunities that have redeeming social value to qualify for the alleged investment. Thus the chain often involves a number of people who invest great amounts of time and energy as well.
While transparency is clearly not in the immediate future, it has reached the point in the sheer number of bright people and work involved that some kind of explanation is required. wu
Hi Wayne,
In my opinion, “ping” programs are usually created and represented by misinformed brokers. The problem with me on the topic is simple, how does the trader get the credit line against collateral that has not been encumbered? The answer is simple, they don’t. Banks need collateral in place which can be seized and liquidated upon default from loan terms. The “ping” program does not offer this, and therefore, most of these “programs” are rarely worth your time.
Thank you for your post!
That goes to the heart of the problem as we see it. If collateral is encumbered it cannot be seized and liquidated upon default from loan terms. And yet on your site someone says the programs do exist. We cannot reconcile the two positions. In your opinion do they exist, at all? Thanks
[...] will make it simple for you to understand, PING programs NEVER WORK. No bank will extend a line of credit to a trader that has no client collateral client [...]
We have a PPP trader that says a $1M account with an "administrative hold" can be leveraged to secure 100M in 30 days by roll over trading.. Sounds Fu–ing crazy to me, but my investor seems hell bent on trying it… Has anyone out there seen a successful transaction like this? He was involved in another platform and just before he could get a compliance package, the platform closed.. I think this really made him go after the second opportunity… The whole thing smells bad to me…..
Kyle J.
Asset Procurement Group, LLC
any one heard of walterconroy working out of hong kong
Hello all. Does anyone have any idea what J.S. Kim's Money Ping strategies might be? And also, can anyone please point me to some good educational materials regarding seasoned funds? Much obliged.
forex automated account…
I think I will stick to picking my own stocks. I’ m looking at buying stock in the BioMed industry through a company called Mentor Capital (MNTR. PK), who has acquired a 20% claim in Quantum Immunologics (QI), a privately held company with FDA approv…
I worked in the private placement business for a little while and this crap is everywhere. This article explains it all. Once again good job insidetrade, i am going to give you guys a call sometime soon.
[...] This term refers to a type of private placement program which allows investors to leave funds in their account, while the trading bank verifies the full [...]
[...] “Ping” Programs, or “Administrative Holds”: Private placement “ping programs”, or programs that require administrative holds, are everywhere but rarely ever work. The problem is [...]
[...] Most of the assets that people try to apply with CAN’T be used for any REAL private placement program. These include ITR’s (Irrevocable Trust Receipt), SKR’s (Safe Keeping Receipt), T Strips [...]
[...] you go to government fraud prevention sites, they say that private placement programs don’t exist, but when you read forums and speak to the brokers and traders, they say they do. Who [...]
And yet there is proof that they do but are seldom 'real'? It would seem that the Treasury Dept is misleading the investment world as well.
You are right! They are seldom!
The ping programm does exist! We helped some clients to put in trade $1M.But it is close to zero to finde a contact like this.Maybe I can help but You have to prove Your seriousness to me VERY HARD!
We have seen it but it was last year.And it is closed.
“Ping” Programs, Are they Real or Not?
I do not agree with all statment in this article.But as I said it is rare.
I have also heard that PING programs can work, but it is very rare to find a contact who can achieve this. Also, you must have a lot more than 1M to apply. Thank you for your insight “sulevss”, we always appreciate any information that helps our community of readers.
you must have a lot more than 1M to apply
Not at all! We hat put some of our clients $1M in a program.Thats why I said that pinging is working.It is not a quess It is knowlege.:)Clients with big money is not easy to finde.:)
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