9.7.13
Speaking of prayers, in the interim, pray that peace comes to Iraq (and to their Arab neighbors to the west), but don’t buy their currency.
Buy some U.S. stocks with consistent dividends. They are a much better bet.
John F. Wasik is an award-winning writer, speaker and journalist specializing in investor protection. He’s the author of Keynes’s Way to Wealth: Lessons from the Great Economist on Building a Successful Investment Portfolio” and 13 other books.
How do the dealers make money from conference calls? They may get a rebate on the cost of the call from telecommunications services. The longer they keep people on the line, the more money they make. Is this how the dinar dealers are profiting? I don’t know for sure, but it is a possible incentive for offering conference call services when there is no real news.
Another reader told me he listened in to one of the dinar calls. Here’s what he heard:
“The thing was I didn’t quite understand how these guys doing these conference calls are making money. One site had zero advertisements on the site to make any money; he didn’t seem to be pumping any particular Dinar Exchanger site and therefore it didn’t seem he is being paid by a Dinar Exchanger site (unless maybe he is being paid by all of them, which is possible I guess, but I think unlikely). But yet he was doing 3 or more conference calls/week where they average over 2 hours per call. That is a ton of work for nothing, so he has to be profiting somehow (he does have a donate button now, but that has only been there a week or so)…So I am speculating that they can see how many people are on the conference calls and when the callers started dropping off it means they are losing money coming in because everyone was dropping off (because they weren’t hearing the revaluation was happening.”
I have no way of independently confirming any of this, but I’m aware of the sites that offer conference calls and updates because I see alerts on them several times a week. Let me know what you’re hearing.
Meanwhile, dinars continue to be sold and the chicanery continues.
Criminal Indictments
Last September four men, principals of a firm called the “BH Group,” were indicted for their alleged involvement in a $24 million dinar-selling scheme and two non-existent hedge funds. According to the indictment:
“The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to the indictment. False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to the indictment.”
In Toledo, a class action suit is also pending against these operators. Toledo attorney Tom Pigott, who represents some of the investors, told me in an email:
“These were people (the defendants in the suit)…who did the weekly conference calls. Originally they sold (dinars) direct. Later they set up an arrangement where they had people go to a website and put in a `coupon’ code. The BH Group is associated with Bayshore Capital (Florida). Bayshore was run by Rudy Coenen. The BH Group was selling dinar and with Coenen offering prepaid ‘seats’ in a hedge fund that was going to invest in all types of Iraq projects after the revaluation.”
Pigott, whose friend invested in dinars and bought them through a man Pigott calls “Fred,” has much more detail on his website:
“The Iraqi Dinar scam has been around since the first Gulf War…We see the use of experts, selling to affinity groups, claiming scarcity, stating that you have to act now to become an insider…All a scam. `Fred’ uses economics to explain how the Dinar must be revalued so that the country of Iraq can sell its oil. Fred tells you how it once was trading at three times the value of the dollar instead of the pennies it now trades. Fred neglects to tell you that the `value’ of Dinar to the Dollar was not set by the market, but by a guy named Saddam Hussein who set the value simply by proclamation.
In this case, this is known as a hard currency scam. Hard currency meaning physical dollars. Fred makes his money by selling you actual Iraqi Dinars at a huge mark up. Typically they are sold at somewhere like one million Dinars for $1,200. Try to trade your Dinars in at a reputable dealer and they will offer you approximately $650 for your million Dinars.
The other method to gain trust and reputation that Fred uses is to say that his company is a `registered currency trader.’ The closest I can get to a registered currency trader is a registered money service business. If you want to become a registered money service business it’s pretty simple: Just complete a form and if you complete it correctly and send it to the IRS you can be one. No exam, no training. What this business relates to is similar to a business that accepts Western Union payments. It has nothing to do with trading currencies.”
The BH Group claimed to be a dinar specialist. Its website now states that it has suspended its conference calls due to “pending alleged legal issues.” In the online statement, chairman Brad Huebner (also indicted in the above case) says:
“This action has nothing to do with the legitimacy or sale of the dinar and you’ll be informed what appropriate actions to take once the Re-valuation occurs. I look forward to have a chance to defend myself, but until then thank you for your prayers and support.”
Speaking of prayers, in the interim, pray that peace comes to Iraq (and to their Arab neighbors to the west), but don’t buy their currency.
Buy some U.S. stocks with consistent dividends. They are a much better bet.
John F. Wasik is an award-winning writer, speaker and journalist specializing in investor protection. He’s the author of Keynes’s Way to Wealth: Lessons from the Great Economist on Building a Successful Investment Portfolio” and 13 other books
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