Due Diligence in Fraud Prevention
You may want to read Part One first, before you read this Part Two.
From Part One: There are countless financial instruments, business documents and corporate/financial structures which are legitimate and have value. However, the con man, huckster, fraudster and scammer will use everyone and everything to part you from your money. Part One also contains a few recommendations to try to stay away from frauds and scams.
Part Two
Business-Related Frauds & Scams
1) Advance Fee Loans Scams: These are fake loan brokers offering incredible loans for any and all purposes, including paying off all debts, erase bad credit, etc. Advance fees range from $10 to thousands to cover anything from processing fees, first payments, etc.
2) Alaskan Trusts and Delaware Trusts: Supposed asset protection tools. The lawyers, trust companies and banks in these states are making money, but, sister state judgments are still enforceable in both Alaska and Delaware.
3) Annuity Abuse: Variable annuities can be good investments, but not for high income or high net individuals.
4) Anti-IRS theories (aka 16th Amendment): Run, do not walk, in the opposite direction.
5) Assembly /Craft Work at Home Scam: Just send in your money and you too can earn $100s and $1,000s per month. All you have to do is purchase the kit/samples/equipment/training manual.
6) Asset Protection Experts with False Credentials: Countless people are presenting themselves as experts in asset protection. Legal and tax training is critical for professionals who provide valid asset protection services.
7) Asset Protection to Save Income Taxes: While asset protection plans will usually reduce estate taxes, no asset protection plan will reduce income taxes.
8) Asset/Revenue Understatements: Countless variations. Use a competent auditor, and if you smell something, use a forensically trained auditor.
9) Bait and Switch: Get excited by that super special low price, find out the product is junk, let the salesman talk you into the high price product.
10) Bank Examiner Swindle.
11) Bank Guarantee Frauds.
12) Bank Paper.
13) Bankruptcy Fraud.
14) Blocked Fund Programs: Just put up some dough and you too can get that money out of that third world or former eastern block country.
15) Bulk Email.
16) Captive & Self-Insurance: If you create your own insurance company, you can pay yourself deductible premiums. Of course if you let the IRS in on the secret, they will tell you that there never was any chance that you could deduct anything, and by the way please pay the back taxes, interest, and those penalties that you owe.
17) Chain Letters.
18) Charging Order Protection: Often incorrectly used with Family Limited Partnership vehicle.