Synopsis of their operations (period 2005)
Tobin (or associates) monitor legitimate funding web sites for their victims. You receive a well-worded E-mail that you have been selected to be reviewed for funding. They are somewhat specific by mentioning components of your Business Plan that they feel make your company worthy of funding. They invite you to Atlanta, GA for a Face to Face meeting with their team. Typically you spend three days with them. They tell you they have (at least) two funders who are very interested and ask that you move quickly to the next step.
Prior to leaving Atlanta, you sign a non-disclosure agreement. At this point there is no mention of fees. A week or so passes and you get a phone call from Tobin saying they have definite interest from two funding sources. To proceed, they need to conduct customary due diligence and then request $20,000 for this process. (Understand in the US venture capital business, fees are customary). You are asked to wire the money to Universal Corporate. Tobin says they retain VIP Technologies to conduct the due diligence.
The due diligence process takes a few weeks and you receive an Email saying their analysis is complete and congratulations, your business is ready to deal directly with the funder, Bertus Sieckmeijer of European Capital Investors. Tobin and Dulin are assigned to assist you with the formation of a Bahamian Corporation and to assist in securing an offshore banking relationship. You then are required to meet Sieckemijer in Manila, Philippines to discuss the relationship and sign a funding contract. For Global Reach, this process took 3 to 4 months and cost about $55,000. Once Global Reach Ventures, Ltd. Was formed and Sentinel Bank (Bahamas) had reserved a bank account, Seickmeijer began another 3-month process to get final funding approval from his Board and several discussions of the correct banking relationship. Throughout this part of the process, Sieckmeijer offered all manner of delays and excuses. He also offered several written/E mailed communications promising the funding is sound and on the way. He even had telephone conversations with the principals of companies Global Reach was attempting to fund.in the end, Global Reach is out $70 to $75,000 and was sued by one of the US companies we were to fund. This suit was settled, but cost Company and Scott Wilson about $15,000.
This scam is well thought out and well run. Our due diligence on ECI and Sieckmeijer did uncover an active company with significant assets and doing business worldwide. ECI is (was) listed on various European trading organizations and its Asian assets listed as well. At this point we know of (at least) five other US companies taken by ECI, Seickmeijer. There are likely many more.
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