Sterling/Reserves/Structuring/ and other topics
Hey Dinar Family,
I have not written in sometime. However, there are a few topics I think merit some discussion. Certainly not to beat an already dead horse – “Sterling”. Additional insights into why and lessons the community here can learn from the Sterling episode.
Secondly, this whole “reserve concept” needs to be addressed before any more folks get hurt. Lastly, the Vegas, Vegas, Vegas crowd.
I have been reluctant to address any of the above out of fear of sounding “negative” or a “party pooper” or “dashing folks hopes”. However, it is time to put some of these to rest and for some in the community to start planning based upon the “facts” not unrealistic expectations.
I am addressing this first as the whole episode actually touches each one of the concepts in some way.
Hearsay: I want to address this first. There are some other attorneys in our forum here and I invite comments from them as well. I read the “forfeiture “ complaint filed in the Federal Court in Atlanta. It was full of hearsay and the community here needs to understand what hearsay is. Often if you watch enough legal TV shows you will hear an actor acting like a lawyer jump to his/her feet and say, “Objection – hearsay”.
It is a good objection to make in court and a lot of attorneys who are not trial attorneys are not good at spotting it. Hearsay is testimony offered to prove the truth of a matter asserted. It is not allowed in our legal system – except before a grand jury. During Grand Jury proceedings you can offer anything there is no advocacy during presentations before a Grand Jury.
It has often been said a prosecutor could indict a “ham sandwich” before a grand jury. And most folks who sit on grand juries have a very poor understanding of their function or the power of members on a grand jury. A grand jury in the United States is so powerful that members can ask the State’s Attorney or assistant US attorney to remove him/herself from the room so they alone can ask questions of a potential witnesses.
However again most grand jury members fail to exercise this right. All that is an aside though from what I want to convey.
Several folks have pointed out that the Federal Bureau of Investigation (“FBI”) has asserted the Dinar thing is a scam. Please note it is not the FBI that made that statement but they are attributing that to the “hearsay” of a potential witnesses and or criminal defendant. If I was to call the FBI person to the stand and ask them “Agent such and such, what proof do you have that the Dinar scheme is a fraud”
The agent could not answer that question – if the agent said “The defendant or the witnesses said, XYZ” the opposing counsel would rise to their feet and object that the statement calls for hearsay and unless the prosecuting attorney was quick the judge would say, “sustained” meaning the question would be dis-allowed. However lets say the prosecuting attorney is a sharp attorney, then the prosecuting attorney could say, “Your honor we are not offering the statement to prove the “Truth” of the matter asserted, only to prove the statement was made.
Do you understand the difference?
In the first instance the statement is being offered as evidence which it is clearly not and the second instance the statement is being offered only to show that the statement was made. Here the judge would have to weigh the prejudicial effect of allowing the statement. And from an attorney’s perspective I would be inclined to disallow the statement because of its prejudicial effect regardless of why it is being offered.
Secondly, there is no way to prove one way or the other.
So Dinar community I know it is a hard concept to understand but whatever the FBI has alleged it is purely an allegation that is unsupportive and does not prove one way or the other whether the Dinar/Dong venture is valid or not.
As a matter of fact if I was a Prosecuting Attorney I would be hesitant to even go there as there is no way to prove one way or the other, especially in light of the fact my case’s strongest evidence is not whether the Dinar/Dong venture is true or not it is strongest because of overwhelming evidence of what I refer to as “Shilling, Smurfing and fraudulent structuring” A good defense attorney for the defendants needs to be looking at these things.
Shilling – this word has many definitions. The noun definition of shilling is an old monetary coin from the UK. However the verb definition means one who acts as a promoter of a concept or investment. Example: “He was shilling for a brokerage house” You see the context? In this case, “Xxxxxx x , was shilling for and on the behalf of “Sterling” and was doing so for monetary gain. He made no disclosures to his group or on his broadcasts that he was promoting for Sterling which I believe puts him in violation of some security laws. Also if he did not report the income then he is violation of not reporting remuneration for his promotion.
Smurfing – this is tantamount to structuring. It is a term often used when prosecutors go after drug dealers. Go back and look at the forfeiture document. This is what I was eluding to above about something the Dinar Community can and should learn from. It was clear on its face there was “structuring” going on. Look at the sheer number of “entities” created. I was shocked at how abusive it was.
I then went to some sites about large US corporations billion dollar corporations. General Electric, Microsoft, Home Depot – these companies are huge and yet none of them has anywhere close to the number of entities created by whomever at Sterling was engaged to “smurf” money. The old term was applied to drug dealers who would break large amounts of cash into small amounts under 10,000 to deposit into financial institutions. Which then amounts to “money laundering” That was the purpose of so many structures.
This is the lesson for the Dinar Community. How many times have I jumped on my soap box and pleaded softly do not go out and set up a bunch of entities at this stage.
The reason is you have no idea at this point what you need. It is pure speculation.
Secondly, if you are not careful even though I seriously doubt anyone here would be so abusive as the owners of Sterling, but setting up corporations, trusts and LLCs for anything other than “asset protection” and “estate planning purposes and or “Risk management” could be deemed as “Structuring”
Do not get me wrong – I believe in financial planning for the purposes of risk management, asset protection and estate planning. However if your purpose is to elude or possibly evade and minimize tax liability and you ever say that to an IRS agent there will be an investigation as to possible tax fraud.
Historically the word “structuring” was okay to use. However today – “structuring” carries in the mind of an IRS agent the same meaning as tax avoidance and evasion etc. it has become a code word which brings up potential devious motives. I know there is nothing wrong with avoidance however the definition in the mind of a government agent means sinister. “Be as wise as a serpent and as harmless as a dove”
And again I ask you – how many of you right now today know exactly what you need? How many of you were counting on reserves? And calculating those expected proceeds in your planning? Again not to sound like a broken record but I have tried ever so softly pleading ---- not to get the “cart before the horse”
Not even I know exactly what I need or will need, because I have no idea what the exchange rate will be for either the international or market rate or what I might could get on a potential contract rate. It is all speculation. And I deal in facts not innuendo and neither should you.
So take a deep breath, relax breath slowly. The plan you should have in place right now.
1. What banks do I want to go to? And do not ask me I have no idea where you live nor do I have the time to speculate. I would look at the large banks first and then the smaller ones.
2.What are you going to ask for during your initial meeting? How are you going to handle yourself, dress, act?
This is where some semblance of planning should come in:
1. How are you going to ask the financial planner or Wealth manager at your second meeting to handle the monies until you can get a grip on what you have?
2.How are you going to divide the money up.
Tony and DC both have shared ad nauseam over and over what you should do. We have no idea of the tax consequences but you should at this point set aside a portion just for what it might be. And if you are savvy you need to decide how that idle money should be treated while it sits there.
I have eluded to things that are safe “Treasuries which by the way are like bonds only issued by the government” “Triple A municipal bond funds” “money market funds” Safe solid investments that allow you to earn some interest while the funds are idle. This all goes with being a “A good steward” In the case of municipal bonds the interest is tax free. Again though this is between you and your adviser.
3.Then you need to take time and think about your risk tolerance, needs in your life and how you want your life to be going forward this is where your “planner” not you will make suggestions that help achieve those goals and expectations. You cannot make unbiased decisions for yourself.
Even an attorney like me would be foolish to try and go on my own thoughts – the reason is any attorney who represents himself has a “fool for a client” I am going to sit down with someone who will listen and work with me to come up with a solid plan.
4.My plan will be based upon risk management, asset protection and future estate planning for my kids.
And I am not going to rush this and neither should you. And I am not going to have a bunch of entities created that give the appearance of “structuring” Anything that is confected will have a solid purpose and coordinated with a well thought out and conceived plan to carry out my personal objectives and will be actively doing something there will be no façade. And each one of you who has significant wealth should do the same.
Back to Sterling
The other thing Sterling was doing – I remember receiving promotional emails about an “Angel Fund” Do you know what that is? Those are funds set up for investors to put money into and then those monies are invested into small businesses with the expectation that in the future the investor will realize perhaps another “Apple” or “Microsoft” However when I read through that list of companies – I noticed that there was a direct connection between an Angel fund and entities or businesses set up by Sterling owners themselves in which money was funneling into. This was a total sham. I assure you this is where the State’s Attorney or Attorney General’s office is focusing along with the structuring.
I know this is going to be a sore subject but let me just say right out of the box. I have never believed in Reserves of “money”. As a matter of fact I could never in my mind reconcile fulling knowing and understanding what “money” is and how it is utilized how anyone in the world could make the representations that Sterling or any of the other money dealers are doing or have done in regards to this entire concept.
Tony on Friday alluded to this: First of all he is right if this goes down soon or even in the next 6 months God forbid then any hypothetical reserves you think you have will not be forthcoming. Simply stated the currency is not there. This is where the Ponzi concept is being alleged even though it is tenuous this is where the government is reaching or the direction they are headed in regards to Sterling. Also as far as getting your money back – you can make a claim but the FBI is going to ask you to provide them a whole lot of information. They are going to want you to prove.
1. Lineage on the money meaning where did it come from, what institution was it in before you sent it to Sterling, how did you get the money. Have you paid taxes on the investment. How many of you are wiling to open your lives up to such inquisitions?
They are going to want to know how you found out about this, have you shared this with anyone else – idea here is to see if you are perhaps a co-conspirator even though you would have innocently done this the purpose here is to allege perhaps you are hands are not clean. So you see what the deal is here?
It is a stretch for anyone to think they are going to receive anything back. If you make a claim you may see some of your good ole US Dollars come back but a lot of that is going to go to the “Receiver” who is a private attorney who is under contract with the US Attorney’s office who will milk fees out of this until there is hardly any monies at all. A final settlement years down the road.
I do not offer that to be discouraging only to state the reality.
Secondly, I am advising not as your attorney but as a friend. Apply common sense and do not go out and purchase more reserves from another dealer. You are rolling the dice. If you want more currency then go out and purchase it outright.
You need to weigh the risks and I would not use “lunch” money to do make the purchases. If you do not have excess money meaning extra money then this is not for you, be content with what you have now in your possession.
This whole reserve concept is truly based upon the “double-dipping” theory. Using proceeds of an exchange to take out theoretical money that I can tell you does not exist at a value that predates the new exchange rate. Logically it cannot happen. Money is a medium of exchange. Therefore what you do not own and posses only carries the value you have exchanged for at a date and time in the past.
If you have not exchanged for it yet the value has yet to be determined. In the future the money will be more valuable and you do not posses it now so how can a dealer really sell you money at a price below the exchange rate? I am going to say from a logical standpoint and from a legal standpoint they cannot do it. Again Tony eluded to this when he said there could be something the “fine print” and he is exactly right.
Enough said you need to purchase your currency and take possession. Any other method is risking the same thing that happened to Sterling. I am not going to take any questions on this nor answer any emails. I think it is plain on it’s face.
Vegas, Vegas, Vegas
I know a lot in the Dinar community in particular those who are loyal to TNT desire this. And I can understand the affection everyone has for the commitment and sacrifices made by so many that simply want to shake Tony/DC or others hands and thank them. However, someone wrote in that this is not a good idea. I am going to go further – I think it will be a violation of any NDA “Non-Disclosure Agreement” Tony and DC sign.
I think it will also be a part of any NDA any other person in the Dinar community signs.
The government does not want a bunch of novices gathering to celebrate openly an event that is supposed to be quiet.
And I can tell you that it is not a stretch to believe that such an event would not also be attended by certain “ABC groups” for the sheer purpose of checking hotel registrations etc. Why risk violations of your agreement and or put a bulls-eye on your back?
Someone also made the statement – who wants to be around folks who could get liquored up and start spouting at the mouth. Remember the old say? “Loose lips sink ships” That person who shared that in a comment is precisely correct. When people get smashed is that still a term today? They tend to say things they would not say when they are of sound mind. I am not going because I do not want to be collateral damage.
Is this not to say Vegas is a bad idea. However I am of the legal opinion the risks far outweigh the advantages. Moreover, I think everyone is going to have plenty to think about and be doing without scheduling a trip to Vegas. Nevada is a great jurisdiction for utilizing in planning i.e. “Risk management, asset protection etc. and I suppose if you are a gambler which I am not” Again though your planner will advise you on a course of action that is personal to you and your family.
I am appreciative of everything Tony and DC “Winston” have shared. I appreciate their candor, honesty and sensitivity to the community. And I respect DC for putting his family first. And everyone who postulates why he is no longer engaged on 3 hour conference calls 3 days a week. Give it a rest already. The guy has financial obligations and responsibilities to his family. I cannot listen I am at work because likewise I have responsibilities – I am grateful to the transcribers for providing the notes so I can read over when I have a chance. So do not begrudge DC for not being on the calls. It is really selfish of anyone to even think otherwise.
Lastly, I am going to touch some nerves here. If you are on any form of government assistance with the exception of social security. Yes you need to be cognizant of losing your benefits should you suddenly come into a lot of money.
Prime example a year ago some girl up in Michigan or Minnesota was the winner of a lottery. And she was also on disability and when others found out she was scrutinized and lost her government subsidized income because she failed to disclose she was a lottery winner. Why would you if you have been blessed want to continue to accept money from the government that comes from the taxpayers to add to your vast wealth?
That seems unconscionable to me. Why? However in the abundance of caution you need to consult a local attorney/CPA and ask him or her. I will not elaborate any further nor will I answer emails about this. You know your circumstances and it is a matter you need to personally think about do some soul searching on and get advice close to home. Again do not write me about this –
just beware if you are currently accepting any other form than social security you need to be conscious that you may not necessarily that you will possibly jeopardize further government assistance.
Again best always to everyone. I know I have addressed some controversial subjects, however anything I have every shared is merely in an attempt to be helpful. I try and stay away from politics and I know many of us would have to agree pleasantly to disagree on many subjects but my motives are pure and I have no desire for anyone to get hurt but to look at the lessons of Sterling, follow advice by Tony and others.
Remember - be as wise as a serpent and as harmless as a dove. May the Good Lord cause his light to shine upon you each and bless you and your family always with prosperity, good health and may love fill your hearts. I am and always,
With kindest regards, Mother, Esq.
(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)