Trading Program For Large Projects

This came in Thursday Evening May 21, 2009 from one of our seasoned bankers on behalf of a client who retained us in December 2008:

He can start with 300K, more is better;

PPP: $300K

Here is the basic break down of the Program:

The program basically works like this….

A. Principal JVs with the Attorney operating in the Program to leverage a $100M Note that is leased, but written to go into Trade with a specific Trade Group

B. Principal sends $300K into Escrow Account with top firm, Attorney puts in roughly another $700K, for a total of $1M to pay for the Leased Note…so what we have here is true Financial / Cost JV

C. The Principal earns 25% of Trade Group Proceeds

D. In the past, and from what I understand they may be changing the program now, the Principal was paid $200M within 60 Days…actually the CONTRACT reads 60 days, it was closer to 30 days or less, with the following taking place:

30 Days to Secure the Note and Enter Trade

30 Days to Receive $200M

E. Now, it appears the Principal will still be making $200M, however, it will be paid over the course of 40 weeks ($5M weekly x 40)….still a phenomenal return.  Still with the following breakdown:

30 Days to Secure the Note and Enter Trade

30 Days to Receive First Proceeds….

F. The $300K is fully guaranteed by the Attorney.

The Principal may do no more than ten (10) $300K Contracts at one time, but may re-enter as often as he or she likes.

NOTE: When the Client does 10 Contracts ($3M), the funds do NOT leave the Client’s account.  Only when doing $300K or below 10 Contracts,

The Principal will receive Contact Information to the Attorney and the Contract after submitting the following:

1. Up to Date CIS

2. Color Copy of PP

3. Bank Statement showing $300K…MUST BE LESS than 3 Days Old

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