Dierckx & Associates

Risk Management, Legal & Financial Investigations, Forensic Services, Christchurch New Zealand

Warning: E1 Asset Management

		Wednesday, 22 October 08 - 03:16 AM (GMT) By John ML Dierckx in General

In the past days I have been approached via unsolicited telephone calls and emails  by someone whom identifies himself as Matt Tirado, representing the Wall Street firm E1 Asset Management. "I am going to make you rich". Usually I would hang up the phone just for someone out of the blue telling me that but he was pesisitent and I let him have his way. It turned out to be an offer in breach of New Zealand law.

His tactics may at the least be described as "pressure selling" stimulating people in to not taking any advice and just get going straight away: while the iron is still hot. It appears to me that they are advising people wrongly especially in relation to doing your required due diligence. Information provided appeared to be insufficient to make good decisions especially if you are not an experienced investor.

The phone calls were very pushy and as I said out of the blue. The email address the information was sent to is an old email address that I hardly ever use anymore, so I think they may have been pharming for addresses.

In between the phone calls impressive information was forwarded to me by email.

Email 1, email 2, email 3

I told of course that I was not familiar with this market and advised that I was looking to get an opinion from my investment adviser as well. "Is this guy making your rich? No, and that's what I am gong to do, I am the one you should listen to cause I am going to make you rich" or words of this nature followed. I told him again that he just needed to be patient and that after obtaining advice I would call him if I was still interested. 

Time for a bit of internet research:

See  here http://boards.fool.co.uk/Message.asp?mid=10678520&bid=50000&sort=whole, which appears to indicate overseas activities since end last year. Also questions are asked on Ecademy, an online business network www.ecademy.com.

A bit of internet research revealed that there are several warnings  out by different government agencies. 

Links to official warnings:

http://www.fma.gv.at/cms/site/EN/warnmeldung_detail.html?channel=CH0208&doc=CMS1139922488622 (Austria)
http://www.fsa.gov.uk/pages/Doing/Regulated/Law/pdf/e1_4apr08.pdf  and http://www.fsa.gov.uk/pages/Doing/Regulated/Law/Alerts/overseas.shtml (UK)
http://www.kredittilsynet.no/archive/4ver/01/02/Neder050.pdf and http://www.afm.nl/corporate/default.ashx?DocumentId=4017 (Netherlands)
http://www.fsc.gi/enforcement/fscwarning0013.htm (Gibraltar)
http://www.a-tvp.si/eng/text/ASPDatotekaOp.asp?id=531 (Slovenia and Isle of Man) withdrawn for Isle of man see here http://www.a-tvp.si/ASPDatotekaOp.asp?id=942 but no provision of reasons.
http://www.cmvm.pt/NR/exeres/21D40757-7081-438E-B757-636401435C9C.htm (Portugal re Netherlands)
http://www.cnmv.es/publicaciones/ianual2004_i.pdf

Listed for unclaimed funds here: http://www.osc.state.ny.us/ouf_recent/E_oufnew1.htm

There should be a warning listing by the HKSC but have not located that.

Listed as a boiler room stock scam by the Venture Research Institute here http://www.vcresearch.info/open/forums.asp?ForumId=100&TopicId=7782 .
 
I just, while writing this email I received a phone call of a client and advised against any investments with this outfit. I would appreciate your views /the Securities Commission's view as well. 

A warning to the Securities Commission.

A quick email to the securities commission with the information provided and made available here resulted in just as quick a response. E1 Asset Management did not provide information that meets the disclosure requirements under New Zealand law.

I had already declined by hanging up the phone, I suggest you do not wait as long as I and hang up straight away. The letter by the Securities Commission can be read
here >>>

Don't get suckered
My advice would at all times be seek advice from a New Zealand share broker who is accountable under New Zealand law should  you wish to buy shares in overseas companies. MORE INFORMATION on that can be found here: 

• Sharescams.org.nz
• Don’t be a gullible kiwi: 
  
• www.seccom.govt.nz/new/releases/2005/100105.shtml
• www.consumeraffairs.govt.nz/scamwatch/index.html
  
• www.sfo.govt.nz 

• www.asic.gov.au/fido/fido.nsf/byheadline/Cold+calling?opendocument
• www.sec.gov/investor/pubs/coldcall.htm http://www.nasaa.org/NASAA_Newsroom/Current_NASAA_Headlines/3454.cfm

Recruitment Risk Reduction tips

		Thursday, 16 October 08 - 01:37 AM (GMT) By John ML Dierckx in Fraud Prevention / Risk Management

When recruiters/head hunters, managers or HR professionals are in need to fill a position, they should look for more than just a proper skill set, experience or a good fit for team or company. They should also consider whether or not there are or may be reasons for not contracting a specific applicant. 

It is estimated that around 10% (US) of applicants have criminal convictions. A considerable amount of resumes contain serious falsehoods or omissions. Diplomas and certificates can  be bought at a reasonable price by those that want to beef up their academic achievements. It is therefore important to avoid costly mistakes and that appropriate measures are taken to reduce the risk associated with recruitment/hiring new employees. Especially in tighter markets where there is a shortage of skills, the need for proper hiring procedures may be overlooked or neglected.

At all times however, you will want to find a balance between required controls and attracting applicants. Employers, should use evaluation tools.  We do encourage you to contact us about our Triple R program (Recruitment Risk Reduction Program): a programmatic approach embedded in the organization's policies and procedures is the preferred choice.  For the purpose of this article however, and realizing that such a programmatic approach is not always realized, here are some tips that can be used immediately, at no cost, and that will assist you in better informed decisions and will hopefully reduce your recruitment risks. It is a well known idea that even the best fraud controls will not do their job if you hire dishonest employees. While it may not always be possible to predict the future and while it is believed that everyone deserves a second chance, we also promote that you can only make a good decision in these matters if you are well informed. I speak from experience when I say that I have often ended up being involved in cases where the sign were all over the wall if someone had only taken the trouble of a proper evaluation of the information provided by candidates. Ok, enough now, here are some tips that may assist you in making better informed decisions.

1. First determine what the actual needs of the organization are and whether or not these needs may be addressed internally. Consider recruiting internally first. 
2. If at all possible use pre-formatted application forms and include any documents or authorization forms that you may require. This ensures that you stay in control of the information you require from each applicant and forces to sit down and document your requirements.
3. Have each job applicant sign a consent form for a background check, including a check for criminal records, past employment, financial information and education. Announcing upfront that your firm checks applicants’ backgrounds may discourage applicants with something to hide, and encourage applicants to be truthful and honest about mistakes they have made in the past.
4. In addition to an actual check, ask whether or not an applicant has been convicted for criminal offenses in the broadest possible terms allowed by law. Laws may differ considerably so  ask your lawyer or HR professional where the boundaries are.
5. Towards the end of an interview, advise applicants that the firm performs a criminal background and reference check as a standard business practice.
6. Ask the applicant if he or she has any concerns to share. Good applicants will usually pay no heed to the question. Applicants with a problematic background may either reveal relevant background information or withdraw their application.
7. You could ask applicants during an interview what they think a former employer might say about them. For example, "If we were to contact past employers, how would they describe your performance, work style?" Since the applicant has signed an authorization and has been advised that such checks may occur, the applicant may be more motivated to reveal information about past jobs.
8. Make sure that the applicants are advised in clear terms that any false or misleading statements or material omissions are grounds to terminate the hiring process or employment, regardless of when discovered.
9. Should employment commence before the completion of a background check: make sure that any agreement states in writing that employment is conditional upon a background report that is satisfactory to the employer.
10. Verifying past employment is often a neglected but very important tool for an employer. Generally speaking, past job performance can be a predictor of future success and offers you an opportunity to test whether or not there may be issues as to how the applicant may fit in.
    
11. Verification of dates of employment and job title are critical because an employer: there may be hidden and unexplained gaps in the employment history to should be discussed or may raise concern. There may be many reasons for a gap in employment.
12. When you are provided contact details of referees from past employers or otherwise, always use the general number of the organization as opposed to any private number or DDI provided. Ill-willed applicants may have made arangements with friends or family.
13. Gaps in employment histories should at all times be discussed. There may be a thousand very valid reasons for these gaps, however if an applicant cannot account for them that could be a red flag. Where in doubt, consider ways to corroborate the explanations provided by the applicant.  
14. Ask for previous addresses, and likewise, if an applicant cannot account for them that may be another red flag. In some jurisdictions (for instance US) previous addresses are paramount to efficiently and effectively perform adequate criminal background checks due to the way the system is set up.
15. Obtain a listing of all past addresses for five to ten years.
16. Advise applicants that besides pre-employment screenings, employment screenings may be performed for specific reasons for instance if a future investigation is required.
17. Since you already obtained the authorization, do actually check for criminal records. There are services providers that can assist in this, as well as obtain financial and other background information.
18. Finally, documenting an attempt to obtain references can demonstrate due diligence and may be seen as an expression of how serious you take your company and its employees, the applicant included. They are after all your most important asset.
    

Press Release Loss Prevention Foundation

		Monday, 29 September 08 - 02:44 PM (GMT) By John ML Dierckx in General

PRESS RELEASE

New Board Members Announced

On September 23, 2008, The Loss Prevention Foundation’s Board of Directors approved four new board members. These individuals are industry leaders and have been chosen to help govern The Foundation, as well as provide strategic direction for the organization. The following individuals have accepted the nomination to serve on The Foundation’s Board of Directors:

·         Patti Feltz, Vice President Asset Protection, Polo Ralph Lauren

·         Monica Mullins, Vice President of Asset Protection & Safety, Wal-Mart Stores - U.S.

·         Kevin Valentine, Vice President of Loss Prevention, Sterling Jewelers

·         Stan Welch, Vice President, Director of Loss Prevention, J. C. Penney’s

According to The Foundation’s Chairman, Frank Johns of A. C. Moore, “It is very gratifying to have such wonderful industry professionals join this Board of Directors. I couldn’t be more pleased to have such a well-rounded group of individuals help govern this organization.”

The Foundation, whose mission is to advance the loss prevention profession by providing relevant, convenient, and challenging educational is organized as a not for profit, 501 (c) 6. “Having such a diverse group of individuals provide direction for this Foundation shows the level of support this organization continues to have from this industry.  We could not ask for a better, more passionate group to lead this organization” said Gene Smith, the Foundation’s President.  For a complete list of board members, please visit our site at: http://www.losspreventionfoundation.org/about_us_board.html

The foundation also recently announced the first 60 LPQualified “LPQ” loss prevention certified professionals: http://www.losspreventionfoundation.org/LPQualified(LPQ)Professionals.html

For more information about The Loss Prevention Foundation, please contact Gene Smith (704-837-2521) Gene.Smith@LossPreventionFoundation.org or Rhett Asher Rhett.Asher@LossPreventionFoundation.org (240-252-3258).

Crude Oil Sales Scam letter

		Thursday, 07 August 08 - 10:12 PM (GMT) By John ML Dierckx in Scam Letters

This came in this morning. An oldie  in terms of 419 scams but apparently still in use. DON'T FALL FOR IT.  

From: "Lomza Saton" <lomza_saton350@yahoo.com>
To:
Subject: CRUDE OIL SALES VENTURE.
Date: Friday, 8 August 2008 8:21 a.m.

Identity Theft gets Organized: SME's Beware

		Monday, 04 August 08 - 01:29 AM (GMT) By John ML Dierckx in Fraud Prevention / Risk Management

I came across this interesting article which is something we all may want to consider, especially SME's. Besides checking your companies office/house records, make sure you regularly get a credit report for your business and yourself.

Source: http://business.timesonline.co.uk/tol/business/entrepreneur/article4417605.ece

Organised criminals are now turning their attention from the well-documented personal identity theft to the corporate market

Introducing the False Profits Blog

		Wednesday, 30 July 08 - 12:02 AM (GMT) By John ML Dierckx in Pyramid Scheme Alert

As readers here are well aware, I have been a supporter of Pyramid Scheme Alert and the prominently heading by Robert Fitzpatrick as well as the efforts undertaken by Eric Scheibeler through his book and site Merchants of Deception detailing his experiences as an Amway distributor.  We can now add the False Profits Blog to the list of sites of interest.

Robert FitzPatrick, the publisher of the "False Profits Blog," is the co-author of the book, False Profits, the first book-length analysis of pyramid schemes and multi-level marketing ever published.

Definitely recommended reading for those interested in MLM and more importantly for those considering a 'career' as distributor.