Investors International

The Royal Canadian Mounted Police (RCMP) and other foreign jurisdictions have been monitoring the activities of a company soliciting funds from investors through participation in a five series "financial educational program" which claims to create wealth through education.

The multi-level marketing scheme, known as Investors International (II), was "conceived" by a Dr. RUDOLF VAN LIN (whose real name is believed to be Rudolf Alexander Victor LINSCHOTEN), the Chairman of Investors International Publishing (IIP).

The scheme involves the purchasing of an array of cassettes, literature and videos on topics including offshore technology, government and tax havens. The program is sold as a 5 part "education series". Its clients pay approximately $1,250 US for what is considered the first series or level. The first two levels consist of video tapes and audio cassettes which provide information that, according to some foreign authorities, is considered nothing more than what could be obtained at a library. IIP's clients that reach level 3 are then invited to attend offshore seminars where they are advised that they will learn about international financial programs that are secret in nature and only available to investors who are able to invest large amounts of monies such as $5 million or $10 million. It is during these seminars that IIP's clients are informed of investment opportunities with Sabre Asset Management Corporation (SAMC).

Levels 4 & 5 involve 10 to 14 day international seminars, which offer "certification as an international financier and membership in the Society of International Financiers." Investigation by authorities has established that IIP and SAMC have held cruise seminars and off shore seminars soliciting investors. In order to be able to purchase the first series, participants must first qualify with a sales quota. The quota is six sales in each series, which must be made under the guidance of an approved director.

A review of this activity by personnel in the RCMP Economic Crime Branch suggests a portion of the promotion is taking place in Canada and has many of the properties of an illegal scheme pursuant to Section 55 of the Competition Act or possibly Section 206(1) of the Criminal Code. The Competition Act regulates multi level marketing plans and specifically restricts involvement in a scheme of pyramid selling. The Criminal Code section makes it unlawful for a person who participates in a scheme involving the recruitment of other persons, to expect more in return from what was initially invested. Information has also been received that LINSCHOTEN is currently establishing the multi-level marketing of IIP within Australia and soliciting investors into SAMC. Investigation has identified investors from Canada into SAMC. The RCMP is aware of numerous promoters and victims involved with Investors International in Canada.

Future Strategies Srl - Pentagono: Investment Scam

Over the past year, the Royal Canadian Mounted Police (RCMP) have received a number of enquiries with respect to a company soliciting funds on the Internet through participation in a pyramid type scheme offering huge returns on investment.

The scheme, dubbed Pentagono, is operated through an Internet home page provided by an Italian company, Future Strategies Srl (Srl, meaning a limited company registration in Italy). They claim to be registered with the Italian Chamber of Commerce and Industry in Modena. They also claim that Future Strategies Srl is a company completely approved by the Italian authorities, operating worldwide. There are a number of Internet websites that post links to the Pentagono website.

In the scheme, investors have to purchase a membership certificate from "a friend" priced at $60 Cdn. Seven people's names are printed on this certificate - the friend's name is on the bottom. Once the certificate has been purchased, you are asked to send $60 to the person who is shown in the top position. You are also asked to send an additional $60 to Future Strategies Srl, Via Muratori 1, Carpi (Mo) 41012, Italy, to cover administrative costs. Once this has been paid, the buyer will receive three additional certificates with his/her name in 7th position. The buyer must then sell each additional certificate at $60 each. By the time the buyer's name reaches the top of the list, the company claims a total of $131,220 can be earned. Future Strategies says, "the mathematically tested Pentagono system represents the improvement and best synthesis of over 50 years of experience and university studies".

The RCMP Economic Crime Branch has reviewed these reports and believes that this investment solicitation exhibits the characteristics of a common "pyramid" scheme and readers are warned that continued participation in the scheme may result in a charge under Section 206(1)(e) of the Criminal Code of Canada. Italian authorities have advised the RCMP that this scheme does not constitute a criminal offence in Italy, but rather a violation of an administrative procedure. The Italian authorities will not be intervening.

The purpose of this bulletin is to alert the Canadian public to this scheme, still running on the Internet, so as to prevent readers from becoming innocent victims. If you encounter any sort of Internet investment solicitation that encourages you to urgently mail or send funds and you feel compelled to participate, the RCMP urges you to first seek the advice of a local investment advisor or banker. Rely only on real people that you can trust!