This scheme offers referral bonuses of up to 15 per cent on investments made by new investors. The companies involved are all in countries where laws are not as strict as Canada's. Tri-West Investment Club is from Belize, and Haarlem Universal Corporation, to whom the cheques are made out, is a Panamanian corporation. The money is sent to the Bahamas or Latvia. Companies accused of this type of fraud usually say they trade in a market available only to the worlds largest banks and wealthiest families.
Banks trade their debt instruments back and forth amongst themselves, generating enormous returns.
Returns ranging from 30 to 1000 per cent per year have been promised in Saskatchewan. The problem is these markets do not exist. It is not uncommon for scam artists to pay some money back to investors - either in the form of referral bonuses or supposed interest payments, convincing investors the investment is legitimate. This only buys the scam artists more time and keeps investors from reporting the scheme to authorities. The principle or bulk of their investment is not due for a year.