Secret Investment Clubs

The curse of the ‘secret investment’ clubs

The IYE Global Investigators are highly experienced and long in the tooth. There’s not much in a lifetime of investigating criminal fraud that they haven’t come across. A perennial theme and one that causes untold hardship for its victims and their families are the con artists favourite, the ‘secret investment’.

The scam is simple but oh so powerful. The con artists convince investors they have access to ‘bomb-proof’ high-yield overseas investments. The story is often spun that access to the investment is exclusive, only open to a select few and those participating should never disclose their involvement as that may put the investment at risk.

Ponzi schemes are a variation on the theme where often the investors are attracted by other friends and family who have already taken part and who have received their first few months payments, which are usually on target and generous.

In all cases, payments, if they are ever made soon dry up and then the excuses start. Over the years our investigators have heard every ‘excuse’ under the sun and in every single case, they are outright lies. The challenge is these messages are so powerful and the investors so desperate for their returns that they live in hope that one day… one day, their investment will be returned and profits paid.

It is not an exaggeration to say that investors often fall into ill health due to the stress caused, in some cases investors have sadly died as a result.

A classic example of this type of fraud involved the conman Anthony Kemp from the North East of England, who having finished a jail sentence for a similar crime in New Zealand was extradited back to the UK to face trial for a scam he and other ran for 18 years! That’s 18 years people held on to the hope that he was telling the truth. He defrauded local people out of £8 million to fund a luxury lifestyle of first-class travel, cruises and a rented house in New Zealand voted as one of the most desirable in the world. While he’s now starting a seven-year jail sentence, his victims in many cases face financial ruin.

If you think you may have been a victim of this type of fraud, we would urge you to contact the police. If you are thinking about investing and you’d like to ensure the investment is genuine IYE Global can help. Contact us on: +44 ‍(0)20 8914 ‍7923 or fill in the online contact form