Proof of Funds, LLC contracts bank debt instruments which our clients use for credit enhancement in second lien position with their banks for loans or lines of credit in the form of Certificates of Deposit, Bank Guarantees and Letters of Credit that are cash-backed from top 25 banks. What makes this collateral so strong is that the instrument will be in the name of the Beneficiary, and is fully lienable, collateralizable, callable, transferable & assignable.
The collateral can be transferred to the client’s bank account with either the traditional inter-bank procedures or the new Collateral First via MT 760 SWIFT. The new procedure applies to Standby Letters of Credit, Bank Guarantees and Direct Pay Letters of Credit for 12 month periods only. Certificates of Deposit are not included in the Collateral First via MT 760 SWIFT procedure.
Minimum of $10 million instrument.
The cost is 20 % for the use of the collateral for one (1) year, 30% for 5 years, CDs are only available for a one year term.
www.pofllc.com
The issuance fee respective to the procedure requested needs to be deposited in Escrow to cause the issuance of the instrument (step 5 below)*
1. INTER-BANK GREY SCREEN PROCEDURE (See Attached)
Contracts are prepared, reviewed and signed. Monies are released in order to block the cash, create the instrument, assign the ISIN & CUSIP Numbers and place the instrument on DTC/Euroclear; all of which will be done contractually within 15 international banking days.
2. COLLATERAL FIRST VIA MT760 SWIFT PROCEDURE (See Attached)
Contracts are prepared, reviewed and signed. Monies are released in order to block the cash, create the instrument, Within 15 International Banking days, we will have the instrument swifted to the beneficiary bank.
Balance of the prepaid interest for use of the collateral to be paid immediately after delivery.
For more info contact off-board
ryan.rettinger@pofllc.com
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so you paid upfront the 2500 and got a proof of funds and paid the fees and received what you contracted and could use it? so far on their literature I have only seen red flags and since I've seen a lot of such products ending up an elaborate sharping of customers beside other things, I can only recommend good legal counsel to anyone offering these because these offers are read and increasingly acted on. Would like to see the positive example if you could please explain.
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Please take my response based on my opinion's and experience. The $2,500 upfront fee is basically for their attorneys to write a contract, is it excessive? Yes, however it used to be $500; I assume before a lot of client's began wasting their time.
Proof of Funds are brokers to a wealthy individual located in Florida. The wealthy individual worked with UBS for a number of years and acquired large sums of assets that are still held at the bank. This individual will "loan" his assets out to clients in the form of the specified instruments. I would be happy to forward to you the wealthy individuals name off board.
I also am aware of a few class action lawsuits against Proof of Funds and the wealthy individual. They went through a phase where a lot of clients we're paying the upfront fees to have the instruments who had no buisness doing so in the first place. Your knowledge of banking is obviously evident so I'm sure you realize why the "loaned" instruments cannot be used in trade, and why private company's cannot loan against the old inter-banking procedures.
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Once the banking system read your post, a trap will be sent your way and once you are in court, the judge will your attorney to explain how 1+1=10 !
Fake POF does not equal freedom.
Here is a copy of an article you may relate to......
Valley (CA) man charged with attempting to obtain $500,000 credit line on house he was renting.
In the following press release the United States Attorney’s Office for the Central District of California announced that a man who was renting a Valley Village home has been arrested on federal bank fraud charges for allegedly attempting to secure a $500,000 home equity line of credit on the house.
Eduard Sargsyan, 55, was arrested by special agents with the Federal Bureau of Investigation last Thursday afternoon after completing loan documents at a Bank of American branch in Sherman Oaks.
According to a criminal complaint filed last Friday, last fall Sargsyan rented the Valley Village home, which was owned by a family trust. In February, a “Trust Transfer Deed” was recorded with the Los Angeles County Recorder’s Office, which transferred title of the home to Sargsyan. In March, Sargsyan used Bank of America’s website to apply for a home equity line of credit on the property. During two meetings at Bank of America where an FBI agent posed as a loan officer, Sargsyan said he owned the home and wanted prompt funding of a $500,000 line of credit. Sargsyan was arrested at the bank branch.
Appearing in United States District Court on Friday afternoon, Sargsyan, who is also known as Genadi Verdiyan and Gehadi Verdiyan, was ordered held without bond until a detention hearing scheduled for this Thursday. An arraignment in the case is scheduled for April 28.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty.
The bank fraud charge in the criminal complaint carries a statutory maximum penalty of 30 years in federal prison.
This case was investigated by the Federal Bureau of Investigation, which received the full cooperation of Bank of America.
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I understand that but still if you read their statement you see that "they contract" and that they want the money, meaning the fee and the 20% or 30% in the escrow account and released till you may get your instrument after 15 days. There is also the matter that the whole service supplies second position credit instrument use, meaning the actual credit arrangement and collateral has to be in place. This is not a clean procedure.
If you go through the website you will find that the escrow agent is only used to shield you from getting in direct touch with the actual layer and frankly knowing about this business I doubt the instruments does not carry specific codes which make it easy to cancel them out and minimize the exposure. The legal use of these structures is very limited and so I I would like to get to the bottom of this, because I wonder how they do this legally, without any licences and institutional status and if they get it to work how they limit the liabilities when operating such structure in the public eye. What we do between members is on specific structure and it is not available to the public, so different rules apply,and even then we are very strict on these.
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Your are correct about the "escrow" lawyer, it is not a real escrow account, almost functioning as a paymaster. They charge anywhere from 5.25 to 7.25 percent upfront in the lawyers account which is drawn down during the process.
The second lien position I believe is used to scare off most of the unqualified clients. BG's and SBLC''s are debt instruments, especially in the case of SBLC's. They are not supposed to be be cashed, and the clients should not try to borrow directly against the instruments. What Proof of Funds applies is that you need to have a transaction in place with a bank, then the bank can use the instruments as direct collateral.
I believe your right with specific codes canceling the instruments. One thing I know they are not doing is giving away free money.
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Its probably a political issue how to run a bank and financial matters, my stand on these things is that we do not close loans on these structures and actually we bar any member using them for 1 year filing a new loan request and cut of immediately third parties.
The reasons: legal risks, info exposure, client engages in business structures which are to support but do not, involving brokerage when not necessary.
In regards of this structure here, I have no real understanding why anyone would involve a law-firm as escrow agent when what they really are is in the brokers sphere distributing money. I also do not see the need for an escrow agent when all he does for the actual customer is forwarding the money. The customer here has to wait 15 days , meaning his financial assets and resources are "naked".
Second lien position is fine when you have a project which is worth a loan, meaning in itself it is able to pay back the loan. Collateral is just a risk cover; no bank gives you a loan just to get a hold on the collateral (yeah some do but thats a special situation and more related to raiding than typical business). After the business plan is through and okay then what is the collateral and yes a second lien may be helpful and may allow the bank more leeway, however it is usually just support. To pay for such support the money which we are talking here, makes only sense in very special situations, and I doubt at that level the players would use a brokerage.
The coding of the transfers is telling it all and almost all banks have a handle on these, may be not all but it is common knowledge with most players in the larger loan departments and in compliance. Actually with us that is part of the closing procedure to check this out.
If they can deliver, its still a question of why use that service and why that structure and why a client would trust them not to run with his money, or just play on the interest and income when later returning the money. So a question of trust, for which I agree you need to know more than is presented. What I do not understand is why not presenting such business in a form which creates or induces trust but instead they are waiving red flags?
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On behalf of all the project owners that come to this site looking for information and guidance thank you!!!!!!!
If we all pay attention you your careful words we will not be sucked in by these up-front fee scams and lose money!!!!
All the best, Mike
PS-----Why cannot all the fees and costs be paid at the bank closing if this is such a real and honest deal????? Any real banker you have a deal confirmed with can write a letter as proof-----subject to acceptable collateral????
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Whenever you do something which is not directly linked to the bank file in the closing it can be that the bank does not want to have it as an issue at closing.
Its usually the US banks or banks serving project finance which include US partners, clients or involved personnel. The problem is a legal one and the attitude of US courts.
Its however usually done that the structure allows to pay all these charges at closing.
However some are still upfront, such as an appraisal, or the CPA when he does tax work, legal opinions etc. The client asks for that service, yes it is related to the financing but not part of the offer and it is in the sphere of the borrower. The problem comes up when a broker does take care of this, in such case a court would have to look at where the most service is located and most courts then tend to push the brokerage issue, which means even if paid the payments are just advances and have to be returned if the file fails. Thats the reason why brokers do not want to do this, but also the reason why some use elaborate networks to cover their tracks.
I'm not saying Proof of Funds is a bad company, I do not know them, I just argue from what they present themselves about their services.
SO the real issues are the application of good common sense, some business assessment and trust issues.
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I should have been more specific------I was referring to the many project fundings---including mine-----that involve European Collateral and European funding banks----using these collateral's!!!! As a Proof of funds----SBLC, and or a BG-----in Europe!!!!
Thank you sir, All the best, Mike
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