Investing scheme that returns 36% annually?

[sputnik]

I've heard about this investing method from a couple of people lately and I was just wondering if anyone knew anything about it. I am sorry I dont have that much info, but I hope it rings a bell with someone as I am curious as to if it is legit or not.

Supposedly it has something to do with investing into a pool in which large international banks and lending houses borrow from.

Apparently you need to open a US bank account and you put a lump sum into it. The money is then invested and has been returning about 36%/annually and pays out quarterly.

($450 USD/quarter on a $5000 investment).

Supposedly your capital is secure and will never drop below your initial investment as all lending from it is already secured.

The numbers dont make sense to me personally, but I also cant seem to find anything about it online.

Anyone hear about something like this before?

[bigboom]

my uncle got caught in a scam like this...except they put his money in a bank in the cayman islands. he made no money and i dont even think he got the full amount of his principle back.

[D. Dub]

a fool and his money are soon parted

[djayz]

way to good to be true

if you know someone closely and they have their money in it and are getting the returns claimed then go for it.
if you recieved this in an email with the title. MAKE QUICK MONEY SITTING AT HOME! delete it and forget about it

[sputnik]

Looks like it is a potential "HYIP Scam".

http://www.google.com/search?q=HYIP+scam
http://en.wikipedia.org/wiki/HYIP

[Rollin']

Doesn't that seem a little too good to be true...I mean 36% return with no risk? If it were true...everyone would be doing it...twice.

[sputnik]

Originally posted by Rollin'
Doesn't that seem a little too good to be true...I mean 36% return with no risk? If it were true...everyone would be doing it...twice.

That wasnt the point of the thread. Everyone knows that it seems too good to be true.

I just wanted to know what they were talking about and who was making the claims. I had no intention of investing any money myself.

[Celica TVS3]

I've herd of this scam before. Esentally what they do is get a bunch of people to open these accounts and they use the money deposited from some peoples accounts to actually pay out the interest/dividends... into other accounts. The people that actually recive the interest tell all their friends that they actually are earning returns as they had expected. These friends tell others....

Then the system collapses when the guy who started the scam walks away with everyones money.

[sputnik]

The RCMP has a warning here.

http://www.rcmp.ca/scams/primeinvest_e.htm

Monetary rewards provided to investors already involved in the schemes to encourage them to induce others to invest. Many individuals brought into these schemes are relatives or friends of the initial investors and, as such, are less sceptical of the investments because they trust the family members/friends who made the referrals.

[D. Dub]

Originally posted by Celica TVS3
I've herd of this scam before. Esentally what they do is get a bunch of people to open these accounts and they use the money deposited from some peoples accounts to actually pay out the interest/dividends... into other accounts. The people that actually recive the interest tell all their friends that they actually are earning returns as they had expected. These friends tell others....

Then the system collapses when the guy who started the scam walks away with everyones money.

Can you say Ponzi scheme?