Inspector Bill Wexler/Roger Babb,
I thought this post from George Chelekis to an Internet Forum may be of interest, in line with your current efforts.
Carry on,
Bond
P.S. ...........And thanks very much.
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>Having seen practically every scam imaginable, by now, I refer back to one of
>my rules:
>
>"It's better to run a background check on the principals, NO MATTER HOW MUCH
>IT COSTS, than to invest in the play and THEN start your due diligence. It
>will cost you more in the long run to lose $10,000 investing in a scam, when
>you could have spent a few hundred dollars to INVESTIGATE the background of
>these people, prior to investing."
>
>As you may have noticed, I have been very quiet on the Internet... not for
>lack of "plays" or potential winners, but .... after having reviewed several
>dozen plays in the past few weeks... and then making some discreet inquiries
>about the backgrounds of the principals.... I could find NONE worth getting
>excited about.
>
>May I again make a humble suggestion of some very basic background check
>points to run on directors, which are behind ANY play you recommend in the
>future?
>
>1) Run a check on their driver's license and find out if there are any
>outstanding arrest warrants, suspended licenses, DUI items, etc.
>
>2) Run a Lexis check to find out if there are any judgements against any of
>the directors, unsavory litigation in progress, tax liens, bankruptcies, etc.
>against the directors of the company.
>
>3) Run a credit check, using their social security numbers to find out how
>timely the directors pay their PERSONAL bills. That will be your FIRST flag.
>Directors who don't pay their bills, etc. are going to run their corporate
>finances very badly. Whatever didn't show up on this might be found on the
>Lexis check and vica-versa.
>
>4) While you're at it, run a Nexis check to pull down the "latest" news media
>reports on these personalities. See if they've been in the "news" before.
>What has the media said about them.
>
>5) Ask for a list of their suppliers and vendors. Phone them up and see if
>the company is paying their bills on time. If the company is reluctant to do
>so, pass on the company. Make it YOUR policy that NO company is a PICK unless
>it meets all of the above points.
>
>**********************
>
>6) You will also have to get personal. There are PI firms (investigators),
>who run checks on people. Costs on this could be as low as $50 to as much as
>$2,000. I'm sure there is a "happy medium" in terms of price. YOU might
>even wish to demand that companies APPLY to your forum and pay the "due
>diligence" fee so that a FULL background check can be run on the companies
>and the directors.
>
> A) No, that is NOT a promotional fee. Make it clear in YOUR
>materials that a FULL background check has been run on the company and its
>directors and they paid $2,500 to have it done. Make it broadly known
>throughout the Internet that Waaco is accepting APPLICATIONS for PICKS and
>that a $2,500 application fee is required so that the co-editors (or
>yourself) can actually RUN these background checks. (Actually, you would
>have to do very little other than hire the PI firm and pay them.)
>
> B) This APPLICATION fee would discourage the "covert crooks" from
>wanting to be found out. Why would they pay $2,500 to have YOU run a
>background check on their company and their directors? It would become VERY
>clear to your subscribers that you are NOT promoting a company for Public
>Relation's sake, but demanding that fee so a background check is being done
>to minimize the potential of "being had."
>
> C) I know you are repulsed with the concept of taking fees......
>therefore, you might consider making inquiries for PI firms that want to step
>up to the plate and BE HIRED for such work. I'm sure you won't find a
>shortage of such firms. (But, first, you had better do due diligence on
>them, to make sure they aren't crooks, themselves!) Then, you would just
>direct the companies to hire the PI firm DIRECTLY or set up an Independent
>3rd party to operate as a pass-through, reviewing applications and directing
>the money to the PI firm. Suggestion: Bill De Morrow, who is a very
>trustworthy individual (I have met with Bill on several occasions and he is
>VERY honest and high integrity). Have Billyboy act as your independent 3rd
>party in charge of investigations.
>
>6) Other personal items to review should also include: (a) any alcoholism
>among directors; (b) any drug abuse or even ANY psychiatric drug use by any
>of the directors... or any history of such use/abuse; (c) ANY financial
>irregularities by the directors... such as a history of bounced checks, etc.;
>(d) any irregular sexuality, pertaining to the directors (now, in this age of
>loose morales, some of you may take offense at such a prudent viewpoint.....
>however, look at ANY bizarre play, which has occurred over the past few years
>[and I have seen many] and one of the common ingredients is "irregular sexual
>connections"..... govt spy agencies would historically use this as a
>penetration point to "turn someone" and how many tabloid stories have you
>heard of, where the old guy ripped off his family or company to finance his
>mistress, etc...... Look at all the Canadian mining scams, we've witnessed,
>and the smaller ones which didn't get international attention.... at the same
>time, go to any "gold show" which travels from Miami to New York to Las Vegas
>to San Francisco, and see FOR YOURSELF, how many "stock promoters" and
>"mining company executives" are hanging out at topless joints at 3am (tough
>way to run a business, when you have to be up at 7 am....)
>
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