The unequivocal response from one of our Eclub advisors to a question one of our readers just sent us about a potential scam (advertised in USA Today) made me send this message out to you immediately - even before Gary checked it!

		-----Original Message-----		From: JO		Sent: 04 June 2001 14:22		To: info@garyascott.com		Subject: Scam?

		Gary,

		USA Today has been running an ad on becoming a member of the Asset		Protection Group, headquartered in Las Vegas, Nevada.  For $9,800 you		become a "Consultant", able to set up Nevada or Bahamas corporation		(IBC).  You collect $2,000 for Nevada corp and $4,9000 for a Bahamas		corp.  You remit $500 for Nevada , and $1,500 for a Banaha corp for APC		doing the paperwork.  The remainder is your Commission.  The idea is to		get a nationwide group of privacy and asset protection Consultants all		funnelling their business inti Las Vegas.  You receive$100 back for each		Nevada corporation and $250 for each Bahamas corporation until your		original $9,800 has been repayed.  The telephone number is		1-800-971-1088 for the Marketing Department.

		Suunds too good to be true--thus it probably is!

		Any thoughts?

The reply from our Eclub advisor Leslie A. Share LAS@PNRLAW.COM makes it very clear one of the additional potential risks if you invest in this scheme:

		-----Original Message-----		From: Leslie A. Share [mailto:LAS@PNRLAW.COM]		Sent: 04 June 2001 14:35		To: 'jo'		Cc: 'webmaster@garyascott.com'		Subject: RE: E-Club Advisors: FW: Scam?

		Jo--not only does it sound like a scam, but you could be sued left and		right if anything went wrong with the entities to be formed.

		Leslie A. Share, Esq. 		Packman Neuwahl & Rosenberg 		las@pnrlaw.com 

From our Eclub advisor, Steve Rosberg comes this additional comment:

		Dear JO,

		Thank you for this interesting question. Yes, it sounds too good to be true and 		certainly is.

		Note the following:

		- you can buy Bahamian companies for substantially less than 4,900, and so can 		your prospective clients. But now, with new Bahamian legislation, there is a 		whole lot more disclosure that needs to be done, so those who think this type of 		corporation suits their purposes will probably be looking elsewhere.

		- Nevada copmanies are also easily obtained for less than you will be selling.

		SO the "trick" is that you are selling into a  "Consultancy Group" that sells 		goods and services at grossly overvalued prices so as to remunerate the 		arrangers and sellers.

		In other words, just another MLM. It is probably legally compliant, but it 		cannot grow indefinitely, so the last entrants, as in any ponzi, will be paying 		for the benefits of all those who got in early.

		This one may have a "sting" to it. It would be a good way for the IRS, or other 		agencies, to get a list of all those acting on the impulse to go offshore. 

		Finally, before you set up any offshore companies, you would do well to take 		specialised legal advice to see that you are not creating more problems than you 		are trying to solve!

		Best wishes,		Steve Rosberg

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