Concern About Fraud In Crude Oil Selling? 2 Percent Performance Bond Surest Proof of Genuine Seller

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Involved About Fraud In Crude Oil Promoting? Why, for Patrons, getting the two P.c Efficiency Bond by the vendor is the Easiest & Surest Proof of a Real Vendor

Credible analysis has proven that, whereas nearly each supposed crude oil vendor who goes to a possible crude purchaser to solicit enterprise, would nearly ALWAYS profusely forswear heaven and earth that he, or the crude oil he professes to be promoting, is “completely reliable, dependable, real, genuine, and sincere,” nearly each OBJECTIVE, CREDIBLE EVIDENCE accessible, then again, provides a very reverse and opposite REALITY – specifically, that the overwhelming majority of those supposed sellers and their gives (in deed, as much as the extent of 99.999999%, in accordance with one report) are completely pretend, bogus, fraudulent or not authentic.

MASTERFULLY FORGED & FALSE DOCUMENTS ARE AT THE HEART OF THE CRUDE/BUYING SELLING SCAM OPERATIONS

The first instrumentality by which these fraudulent con artists and crude “sellers” function or perpetrate their con sport, is using skillfully solid or false paperwork. Such fraudulent and pretend “sellers” – or, no less than, the last word masterminds who originate and stand behind the scheme – are infamous for being grasp forgers and wonderful copiers of each conceivable authentic refinery and authorities company paperwork associated to crude gross sales or purchases. In deed, in accordance with consultants, so masterful at this sport are these fraudsters, that the paperwork they supply to potential patrons are sometimes so strikingly convincing and real-looking that they’re incessantly plain troublesome, if not unattainable, for nearly all however essentially the most expert of doc authentication consultants to instantly distinguish from the actual and genuine ones.

As one report by the Fraud Watch Worldwide summed it up, “Victims [of such fraud] are sometimes satisfied of the authenticity of Advance Payment Fraud schemes by the cast or false paperwork bearing apparently official Nigerian authorities letterhead, seals, in addition to false letters of credit score, cost schedules and financial institution drafts.”

The U.S. State Division’s Bureau of Worldwide Narcotics and Legislation Enforcement Affairs, in a report titled “Nigeria Superior Payment Fraud,” describes the paperwork employed by the Nigerian Superior Payment Fraud (AFF) or 419 perpetrators, as “official-looking stationery with acceptable authorities seals, stamps, and signatures,” whose high quality, it says, has “developed through the years, from poorly handwritten letters to extra skilled merchandise ready on phrase processors. Phrase processors additionally permit AFF criminals to generate extra letters.” It provides that the “AFF criminals embrace university-educated professionals who’re one of the best on this planet for nonviolent spectacular crimes.”

THE MAIN PROBLEM: INABILITY BY BUYERS TO VERIFY SELLERS’ CLAIMS & DOCUMENTS

The purpose is that, largely in consequence of the above actuality, for severe worldwide patrons of Nigerian crude oil, the one most important and most troublesome and dangerous drawback they confront within the open market, is now typically the verification and affirmation of the vendor’s claims about having an genuine crude allocation and/or its present availability, and the affirmation of the proofs and paperwork submitted by them in help of these claims. For many patrons, endeavor that process is usually dreaded and seen as one thing fraught with large dangers and uncertainties that ought to solely be threaded with the utmost warning, and the best care and deliberation.

BUYERS’ “PREFERRED” PROOF & EVIDENCE OF CREDIBLE SELLER TODAY – a 2% PB

As a result of verification and affirmation of such paperwork from sellers are usually so troublesome and dicey, most such worldwide crude oil patrons search, subsequently, to purchase ONLY from sellers who can present them what they contemplate the most secure, most tangible, and most simply dependable sort of proof and proof of credibility by a vendor. And what’s this “most popular” proof and proof that almost all patrons would relatively have? It’s merely this – the supply by a vendor of a 2% Efficiency Bond (PB) to the customer.

THE USUAL VERIFICATION & CONFIRMATION APPROACHES

In a phrase, the standard proofs and proof of crude allocation and availability provided by sellers to potential patrons, is usually the supply to the Purchaser of the cargo’s PROOF OF PRODUCT or POP. In a C.I.F. or F.O.B deal, for instance, the everyday method by which a supposed crude oil vendor exhibits “proof” or proof to a possible purchaser that the Vendor has a real crude allocation or crude accessible to promote, is for the vendor to offer the customer the PROOF OF PRODUCT, and the customer is requested to “confirm and make sure” the authenticity of this on his personal, and, upon that, for the patrons to concern their Financial institution Assure or Letter of Credit score (or different cost instrument) to cowl the acquisition price of the product at supply.

However the issue with this conventional methodology, is that for many worldwide crude patrons, the common Nigerian vendor’s POP (an array of paperwork that would embrace the present loaded vessel paperwork, present Authority to Board (ATB) that was particularly issued to the preliminary purchaser (consignee) of the crude in whose title the vessel was issued, Certificates of high quality, Certificates of origin, Cargo manifest, Vessel ullage report, Certificates of amount, Invoice of lading, the Bulk Allocation Particulars, the Vendor’s Authority to Promote (ATS) from the NNPC, and many others), is NOT dependable or readily verifiable for genuineness. For instance, the POP, which is, in a phrase, the vendor’s fundamental doc that is meant to show to the customer that the vendor truly has the product being offered, may be exhibiting that an proprietor of the oil allocation or commodity has possession of the product as of the precise time of the transaction, say, at a sure hour of the day at the moment. However but, there is no such thing as a assure that the product may not have been offered to a different purchaser simply hours, and even minutes, proper after that transaction, and that the commodity is definitely nonetheless accessible on the market or supply to the customer.

“Most patrons don’t settle for Nigerian sellers’ proof of product (POP),” says Sam Nelson, an skilled in crude shopping for and promoting strategies and the writer of a primer on the topic. “Because of this, they (the Patrons) need a tangible (Bodily) proof of product. The customer would request that the vendor examine the cargo and current a verifiable inspection report from accredited businesses like SGS, Q & Q or Robinson Worldwide earlier than they (the Patrons) will constitution a vessel for the transaction. It is because some so-called Nigerian sellers have false declare over merchandise that by no means existed and they’d forge paperwork to current as POP. Nigerian market needs to be adopted very rigorously and all documentations totally verified.”

Nelson provides: “Please don’t give any inspection cash to the vendor. At all times pay the cash on to the inspection firm after they’ve collected samples of the crude oil from the mom vessel for chemical evaluation to verify the standard and amount of the crude within the vessel. Additionally, insist that the ATB (Authority To Board) from the vessel for inspection originated from the captain of that vessel. Don’t settle for any paperwork as genuine should you didn’t confirm it from the captain of the feeder vessel. Any documentation from a Nigeria vendor have to be verified for authenticity.”

MOST DOCUMENTS OR PROOFS BY NIGERIAN SELLERS ARE VIEWED WITH SUSPICION

In deed, these days, the identical drawback of normal incapacity to definitively authenticate real crude allocation or availability, now pervades even conditions the place “tangible, bodily” POP inspection has supposedly been made. And a few patrons discover that even this cautionary recommendation by Nelson, that the patrons ought to “insist that the ATB (Authority To Board) from the vessel for inspection originated from the captain of that vessel,” would typically not fairly work any extra in lots of conditions at the moment.

In a TTO deal, for instance, the very fact of the patrons’ representatives boarding the vessel to make an “inspection” or “affirmation” of the “loaded” vessel, is usually no extra a assure that the transaction is essentially real or authentic. Nigerian con males and 419ers who function within the crude oil business, have been recognized to work with fraudulent vessel managers and captains or con males disguised as workers of the Shell/JV terminal operators. And Vessels confirmed as “pregnant” (i.e., loaded) even by the customer’s representatives and his appointed SGS inspectors invited to return aboard the ship on a presumed ship “captain’s” ATB doc, have been recognized to be truly organized by pretend ship operators and ship managers and “captains”; and in such circumstances the customer will solely be taking on a ship and cargo with FAKE Constitution Occasion Settlement executed between the customer and pretend ship supervisor, with no AUTHENTIC ship proprietor’s approval and no genuine delivery paperwork. And as soon as the customer’s representatives aboard the vessel confirms that the vessel is “pregnant,” the customer pays for the cargo, takes over the vessel, and the con males shortly cut up the cash and vanish. The customer losses all the things because the authentic vessel proprietor by no means approved the captain to concern the CPA, and the important cargo delivery paperwork used within the transaction are all merely pretend.

Nigeria’s bureaucratic quagmire

And there is yet one more drawback concerned in attempting to authenticate Nigerian crude oil paperwork. The issue of the bureaucratic quagmire related to doing enterprise in Nigeria. One skilled vastly skilled in doing crude oil shopping for enterprise in Nigeria, put it this strategy to this author: “NNPC Crude Oil Advertising Division, Abuja, is the authoritative supply to confirm the Authority to Promote doc. However you’ll spend an countless period of time attempting to confirm it. As with most Nigerian institutions, individuals use private connections to get such paperwork, however that doesn’t imply that they will ship.”

WHAT BUYERS NOW VIEW AS THE BEST AND MOST “PREFERRED” PROOF OF AN AUTHENTIC CRUDE SELLER – A SELLER WHO CAN PROVIDE BUYER A 2% PERFORMANCE BOND

In brief, the purpose is that nearly all conventional manners of verification and affirmation of crude oil possession and availability have turn out to be severely contaminated and adulterated by con artists and pretend operators to the purpose that many worldwide crude oil patrons regard these strategies as largely unreliable, too troublesome to confirm, and fraught with insupportable dangers. And consequently, there has developed amongst them what might at the moment be known as a “most popular” methodology for figuring out an genuine and credible vendor of crude oil in at the moment’s market. Such a vendor is just one who can meet one fundamental requirement – specifically, is keen and capable of present the customer a 2% Efficiency Bond upfront in a transaction.

What’s a Efficiency Bond or PB?

That is, in a phrase, an insurance coverage doc issued for the vendor by vendor’s financial institution or insurance coverage firm guaranteeing that the issuer can pay a stipulated quantity (a sum amounting, on this case, to 2% of the entire worth of the cargo being bought) to the customer within the occasion that the vendor breaches (fails to carry out) the phrases and specifics of the contract signed by the vendor with the customer. (The Efficiency Bond may be posted within the type of a Money Bond). The financial institution or insurance coverage firm which points the PB acts because the accountable “surety” of the bond

If a vendor contracts with a purchaser to place up a 2% PB – and is ready to truly put up that bond together with his financial institution or insurance coverage firm – the vendor is, in a phrase, guaranteeing the customer that if he had been to fail to carry out his obligations below that contract, his financial institution or insurance coverage firm, of their roles because the “surety” of the bond, can pay the customer a sum amounting to 2% of the worth of the crude being bought, regardless.

WHY BUYERS LOVE THE PERFORMANCE BOND GUARANTEE

Patrons love discovering sellers who can present them UPFRONT 2% Efficiency Bond, overwhelmingly viewing that because the “most popular” possibility as they contemplate that the most secure, most dependable, most tangible, and most assured and least fraud-prone sort of proof and proof of credibility by a vendor. Most consultants contend that if a vendor can provide a 2% PB deal – and, what’s much more vital, is definitely capable of put up the PB as a result of he has the monetary wherewithal to take action – it’s nearly assured that the vendor won’t fail the customer within the precise execution of the deal, however will nearly certainly carry out these obligations as contracted with the customer.

Sam Nelson, skilled in crude shopping for and promoting strategies and the writer of a primer on the topic, put it this manner: “A contract with any of those bonds in place will likely be efficiently accomplished. A bonded contract has a better diploma of success than a non-bonded contract. A bonded contract is a bankable contract. The gamers have their cash at stake and that may be a good purpose for them to carry out.”

And the Authorized Dictionary explains it this manner: “The aim of a bond is to offer an incentive for the success of an obligation. It additionally gives reassurance that the duty will likely be fulfilled and that compensation is on the market if it isn’t fulfilled. Efficiency Bonds assure for the passable completion of a venture.”

There are a couple of particular bases why patrons and consultants really feel that method:

1. Having the ability to put up a PB is an indication of monetary credibility and talent.

To have the ability to finance an precise posting of a 2% PB (which is able to imply, for instance, on the present crude costs, 2% of, say, $200 million for a 2 million barrels cargo, one thing amounting to $4 million), a vendor must have some substantial monetary means and assets.

2. Monetary Price and Penalty Concerned In Posting a PB, is a Highly effective Disincentive To not Carry out.

Sam Nelson: “The gamers have their cash at stake and that may be a good purpose for them to carry out.” In deed, most patrons, upon getting the two% PB issuance from a vendor, would promptly settle for that as equal to POP and forgo having to overview the POP.

3. The Regular Con Man or 419er Will Not Have the Disposition, the Repute & Monetary Wherewithal to Publish a PB.

Robert Strickland of Strickland Associates, an skilled New York vendor in crude oil offers, says as follows: “If you’re involved with FRAUD! ONLY true Sellers that provide a 2%+ Efficiency Bond are real Sellers of Nigeria [crude oil].”

Sam Nelson, the crude oil offers skilled and writer: “These bonds are mandatory to guard the curiosity of the events concerned for pointless losses resulting from fraud or full negligence.”

4. Having the ability to put up a PB is a strong indication to a purchaser that the Vendor has already been vetted.

Acquiring a PB is mostly not a simple or computerized factor. Earlier than a financial institution or insurance coverage firm would give a vendor a bond, the vendor shall have gone by a rigorous utility course of, and should have met a set of stringent monetary and character necessities and situations. Therefore, when a purchaser will get a vendor who can, and does truly, put up a 2% PB, the customer is sort of assured that he is obtained a reputable vendor, and one impossible to be a fraudster or a 419er.

For simply an instance, one Syracuse, New York, insurance coverage firm requires candidates for a Public Building job PB to offer them the next objects, amongst others:

Surety Questionnaire Stuffed Out Fully

Copy of Contract/Award Letter or Solicitation Letter

Enterprise Monetary Statements (2 years audited fiscal yr financials) OR

Final 3 years Firm Earnings Tax Returns

Private Monetary Statements and Resumes on all homeowners of 10% or extra

Work in Progress Schedule (if relevant)

Insurance coverage Affirmation

A. Workman’s Compensation

B. Legal responsibility Certificates

C. Key Man Coverage

Provider and Contractor Reference Letters

Schedule of Accomplished Jobs

Financial institution Reference Letter

Firm and Private Indemnification (GAI we provide)

Articles of Incorporation

Company Decision

Job Price Breakdown and/or bid specs

IN SUM

To most patrons of crude oil within the worldwide open market, getting an UPFRONT 2% Efficiency Bond issuance from a vendor, is the overwhelmingly “most popular” methodology for doing a gross sales/buy deal. It’s the possibility they contemplate to be the most secure, most dependable, most tangible, and most assured and least fraud-prone sort of proof and proof of credibility by a vendor.

For varied causes and elements, lots of that are outlined above, most patrons and consultants consider that if a vendor can provide a 2% PB deal – and, what’s much more vital, is definitely capable of put up the PB as a result of he has the monetary wherewithal to take action – it’s nearly assured that the vendor won’t fail the customer within the precise execution of the deal, however will nearly certainly carry out his personal obligations as contracted with the customer. Therefore, in a deal of that sort the customer has little or nothing to fret about regarding a possible threat of fraud or rip-off. In consequence, patrons love discovering sellers who can present them – who can truly put up – a 2% PB, and contemplate that to be one of the best proof and assurance of getting a reputable vendor, and one impossible to not carry out the contract, or to be a fraudster or a 419er

NOTE: As with many issues regarding many a Nigerian crude vendor, it is one factor for a vendor to assert to a purchaser that he’ll put up the PB, however fairly one other factor altogether for the vendor to have the ability to truly do it, or to truly do it!),.

FOR A FOLLOW UP

YOU WANT TO FOLLOW UP ON HOW YOU CAN ASSURE GETTING A NIGERIAN CRUDE OIL SELLER WITH A TRUE, UPFRONT 2% PERFORMANCE BOND? OR SELLER WITH OTHER KINDS OF SALES DEALS THAT ARE GENUINE, “SAFE” AND SCAM-FREE?

INSTRUCTION: You are able to do so. You possibly can readily get hold of the precise fundamental necessities you’d want to satisfy so as so that you can turn out to be routinely thought-about “confirmed” as a really LEGITIMATE vendor who actually genuinely has some crude to promote. USE THE AUTHOR’S FIVE BASIC OPTIONS PROGRAM.

Simply ship an e-mail and easily ask for “the FIVE OPTIONS.” CONTACT THE AUTHOR ON THIS ONLY BY EMAIL, PLEASE, at: anosikemo@yahoo.com OR anosike2@aol.com

MORE ON THIS AND RELATED TOPICS ON THE AUTHOR’S BLOG AT: http://www.affordablebankruptcy.blogspot.com/

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Source by Benjamin Anosike, PhD