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[NG12]

Anyone know anything about CRE Capital Corp? They are based out of Alpharetta, Ga.

They are agreeing to pay 10% monthly and your initial investment back. They only do 30 day contracts, that you can renew every month. Minimum investment is $100,000.

They claim to have been around since 2005 but all websites associated with them were created in July and August of 2008.

Can't seem to find anything substantial about this company online. They keep saying they are by "invite only" but you can contact them about "investing".

Other websites associated with them are:

crecapcorp.com

privatecurrencytrading.com

alottlegroup.com

[Pharaoh]

I'd need more information, but this sounds very strange.

Anything guaranteeing 10% per month is almost guaranteed to be some sort of scam, most likely a Ponzi scheme. 10% with renewals each month sounds a lot like those HYIP versions of Ponzi schemes. I'd definitely recommend staying away from anything like this.

If it sounds too good to be true, it's probably a scam.

[NG12]

Here's a copy of their contract I've obtained. I actually have a friend that has given them $100,000. He's been getting $10,000 wired into his account every month for the past several months.

They are claiming that they average much higher than the 10% (I've heard as high as 26% average) but anything above the 10% is their profit.

Owners name is James Ossie and VP's name is Robert Gaubert.

I agree with you that this sounds like a ponzi scheme, I just can't find any definite proof to show my friend. I've found several lawsuits against Mr. Ossie's previous company (Nation Direct Capital, a commercial mortgage company) but they have played these off. I've also found some info on Mr. Gaubert's previous company, UBG Capital.

I'm concerned for my friend. I'm afraid we won't have any definite proof that this is a scam (if it truly is) until he loses all his money.

[J Sabo]

Originally Posted by NG12

Here's a copy of their contract I've obtained. I actually have a friend that has given them $100,000. He's been getting $10,000 wired into his account every month for the past several months.

They are claiming that they average much higher than the 10% (I've heard as high as 26% average) but anything above the 10% is their profit.

Owners name is James Ossie and VP's name is Robert Gaubert.

I agree with you that this sounds like a ponzi scheme, I just can't find any definite proof to show my friend. I've found several lawsuits against Mr. Ossie's previous company (Nation Direct Capital, a commercial mortgage company) but they have played these off. I've also found some info on Mr. Gaubert's previous company, UBG Capital.

I'm concerned for my friend. I'm afraid we won't have any definite proof that this is a scam (if it truly is) until he loses all his money.

The company is legit and is not a scheme. You may visit them in Ga. and see them in action. The lawsuits were dismissed and was brought about because the borrowers tried to obtains loans from their company. There was a due dillagence clause in their contracts and when CRE got the funding for them they renigged and their deposit was non-refundable. The principle owner got out of the mortgage business just before the credit crunch and got into buying currency and so far has worked out well for them. I know several investors who have been with them for almost a year and have already got their initial investment (100,00) back already.

[three z]

I have personally visited their operation and although it is a nice office in a nice building, I have not been able to get any documentation verifying they are doing anything they say they are doing nor have I been able to obtain any trading statements or seen any reserve account statements they may or may not have.

There are many RED flags that have led me to not get involved with this organization. I am not saying it is a scam however. But... in my opinion if it were legit, why would they be so secretive about everything as far as non disclosure? They are not registered as an investment advisor although they are offering securities through 30 day notes or investment contracts, nor do they offer any subscription docs, PPM or the soon to be required (maybe) NFA disclosure document.

They claim because they only accept investments from companies (not individuals) they are exempt from registration. All three attorneys I have spoken to do not agree with that statement.

I really want this to be real and according to the owner, all books including audited financials will be available in April, 2009. I will wait unil then to see if I may move forward with them.

[NG12]

Originally Posted by J Sabo

The company is legit and is not a scheme. You may visit them in Ga. and see them in action. The lawsuits were dismissed and was brought about because the borrowers tried to obtains loans from their company. There was a due dillagence clause in their contracts and when CRE got the funding for them they renigged and their deposit was non-refundable. The principle owner got out of the mortgage business just before the credit crunch and got into buying currency and so far has worked out well for them. I know several investors who have been with them for almost a year and have already got their initial investment (100,00) back already.

Again, I'm not saying this is scam but I would recommend you research how Ponzi schemes and HYIP's work. Some people will actually make money if they get in early. To point out that this person or that person got their initial investment back does not mean that it's legit.

Also, I'm not sure when the owner got out of the mortgage business but there was a suit filed against Nation Direct Capital on 10/06/08 (last month). It was from a deal that was being worked on in Dec '07. Look it up, it's public knowledge. The "Commitment Fee" that wasn't returned (at least at the time the court documents were filed) was for $525,000.00. According to the Ga SOS, James Ossie is listed as the owner of Nation Direct Capital. They still have a website and an office that up until recently, shared the same address as CRE. There are several other suits listed against them. You may want to take a look for yourself. All I'm saying is that there is a history that can't be ignored. You may be surprised if you think these were all dismissed.

I hope these guys are legit but I think some of these questions need to be addressed. I've heard from several people that they are currently averaging around 26% to 28% monthly return on their forex trading. Out of that, they pay their investors their 10%. Again, this is only what I've heard and maybe you can verify.

Have you ever looked at 26% compounded monthly to see what type of return that is??? You could invest $100,000 and in just 1 year, you would have more that 1.6 million. In 4 years, it would be worth over 6.5 BILLION.

Maybe someone with more forex experience could chime in and tell us how realistic this is?

[three z]

The 30 investment contracts are renewable and noncompounded. Interest must be taken monthly or enough interest has to be paid to open another contract.

[NG12]

Originally Posted by three z

The 30 investment contracts are renewable and noncompounded. Interest must be taken monthly or enough interest has to be paid to open another contract.

I do understand that. I guess I was just saying that if these guys are financial gurus that were apparently pretty well off before this, why wouldn't they just use their own money and let it compound for awhile? Maybe I'm looking at this wrong, but they could be billionaires in no time at an average of 26% to 28% monthly.

Even though they are not allowing compound interest right now, from what I understand they want to allow people that option in early '09. Should this be another red flag?

[Pharaoh]

Originally Posted by three z

The 30 investment contracts are renewable and noncompounded. Interest must be taken monthly or enough interest has to be paid to open another contract.

But surely CRE must be compounding their share of the take. Also, as noted, the website indicates that allowing clients to compound is on the agenda.


I also cannot confirm that this is a Ponzi scheme, but without much more transparency and disclosure, it certainly shares a very high number of similar traits. I'm always amazed at people willing to place $100,000 or more into someone else's trust without a ton of documentation. I've seen far too many people lose everything to setups that promised returns far lower than 120% per year.

[NG12]

Here's some more info my friend told me about these guys:

After you wire the money to CRE, they wire it to German and Swiss trading accounts. They say that the money is not kept in commercial or retail banks but is 100% protected under the FIPC. They spread the money over 35 trading accounts to minimize risk.

They plan to take their fund to 5 billion in 7 to 10 years and then sell it on Wall Street.

In early '09, 40% of the company will be sold as a private offering of stock to correspondents and clients for $1 to $2 per share. They claim that an independent firm has estimated the stock to be eventually valued at $40 to $45 a share.



Here are more websites associated with them:

aurumenterprises.com
jterryinc.com
sagemoney.net
alottlegroup.com