There is no possibility that Private PRC Company will pay dividends to Private BVI tax haven Corporation as long as American Public Company appears to own BVI Corporation. So, there is no possibility that American public company will ever see a dime.

Follow Money

The swindle targets investment funds and angel investors willing to buy Public Company's shares. The Private Placement investors receive shares in worthless public company. Their money goes to BVI tax haven Corporation. The private BVI Corporation invests American Private Placement funds into private PRC Company. The Private Investments continue as long as there are foolish American investors willing to convert their dollars into worthless stock.

Usually ineptly, worthless public company's shares are promoted to American investors. The insiders, as with almost all stocks, dump into public buying. After paying public company filing costs and costs for stock promotions, insiders take their profit.

The End Game

Once it's clear that more American Private Placement financings are unlikely, private PRC Company cuts link to American Public Company. In a recent NYSE example, private PRC Company refused to be audited. The game was over.

The BVI link is key that gives swindlers ownership of American public company assets. From PRC's viewpoint, foreign investor is BVI Company and not American Public Company. Tax havens are tax havens because it's nearly impossible to get any information about a company incorporated in that jurisdiction. So, swindlers can easily transfer public company's assets in BVI without anyone being wiser.

Avoiding This Sting

I call this Shell Game a Roach Motel because your money goes in, but it never comes out. It's easy to spot Roach Motels in annual filings of any public company. Find item that discusses company's corporate history. If that history is a corporate structure with public company owning a tax haven corporation that in turn owns a private operating company, it's a Roach Motel. There are scores, if not hundreds of these Roach Motels trading today. If you can't find an example, email me at Beowulfinvestments@Earthlink.net and I'll send you a few examples to use at SEC's EDGAR website.

To contact author visit: [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

If you find yourself in a situation where you need to borrow from a payday loan company then perhaps it is time to pause and reflect upon how you got to this point. Sometimes situations arise that you have no power over but more often it is a fault of bad financial planning. Now would be a good time to review your monthly budget and try to see what went wrong and what you can do to prevent problem from occurring again.

Depending upon your situation, there may be better options for you than a payday loan. For example, if you have a little time to wait, you may be able to use funds in your 401K plan. Funds withdrawn from your 401K you are only taxed at 10% and if you make arrangements with your payroll department to repay withdrawal from your 401K then it is not taxable at all.

Before getting a payday loan make sure you have examined all of your options. Do you really need this loan? Is there a mistake on your credit report preventing you from getting a normal loan or credit card? Can you change your monthly budget to avoid financial problem you are experiencing? Payday loans may seem like a convenient option but a steep price comes with that convenience.