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

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Concerned About Fraud In Crude Oil Selling? Why, for Shoppers, getting the 2 P.c Effectivity Bond by the seller is the Best & Surest Proof of a Actual Vendor

Credible evaluation has confirmed that, whereas nearly every supposed crude oil vendor who goes to a potential crude purchaser to solicit enterprise, would nearly ALWAYS profusely forswear heaven and earth that he, or the crude oil he professes to be selling, is “fully dependable, reliable, actual, real, and honest,” nearly every OBJECTIVE, CREDIBLE EVIDENCE obtainable, alternatively, supplies a completely reverse and reverse REALITY – particularly, that the overwhelming majority of these supposed sellers and their supplies (in deed, as a lot because the extent of 99.999999%, in keeping with one report) are fully faux, bogus, fraudulent or not respectable.

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

The primary instrumentality by which these fraudulent con artists and crude “sellers” perform or perpetrate their con sport, is utilizing skillfully strong or false paperwork. Such fraudulent and faux “sellers” – or, a minimal of, the final phrase masterminds who originate and stand behind the scheme – are notorious for being grasp forgers and superb copiers of every conceivable respectable refinery and authorities firm paperwork related to crude product sales or purchases. In deed, in keeping with consultants, so masterful at this sport are these fraudsters, that the paperwork they provide to potential customers are typically so strikingly convincing and real-looking that they are steadily plain troublesome, if not unattainable, for practically all nonetheless in all probability probably the most knowledgeable of doc authentication consultants to immediately distinguish from the precise and real ones.

As one report by the Fraud Watch Worldwide summed it up, “Victims [of such fraud] are typically glad of the authenticity of Advance Cost Fraud schemes by the strong or false paperwork bearing apparently official Nigerian authorities letterhead, seals, along with false letters of credit score rating, payment schedules and monetary establishment drafts.”

The U.S. State Division’s Bureau of Worldwide Narcotics and Regulation Enforcement Affairs, in a report titled “Nigeria Superior Cost Fraud,” describes the paperwork employed by the Nigerian Superior Cost Fraud (AFF) or 419 perpetrators, as “official-looking stationery with relevant authorities seals, stamps, and signatures,” whose top quality, it says, has “developed over time, from poorly handwritten letters to additional expert merchandise prepared on phrase processors. Phrase processors moreover allow AFF criminals to generate additional letters.” It supplies that the “AFF criminals embody university-educated professionals who’re the proper on this planet for nonviolent spectacular crimes.”

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

The aim is that, largely in consequence of the above actuality, for vital worldwide customers of Nigerian crude oil, the one most important and most troublesome and harmful draw back they confront throughout the open market, is now usually the verification and affirmation of the seller’s claims about having an real crude allocation and/or its current availability, and the affirmation of the proofs and paperwork submitted by them in assist of those claims. For a lot of customers, enterprise that course of is usually dreaded and thought of as one factor fraught with massive risks and uncertainties that should solely be threaded with the utmost warning, and the perfect care and deliberation.

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

Because of verification and affirmation of such paperwork from sellers are usually so troublesome and dicey, most such worldwide crude oil customers search, resulting from this truth, to buy ONLY from sellers who can current them what they ponder probably the most safe, most tangible, and most easily reliable type of proof and proof of credibility by a vendor. And what’s this “most popular” proof and proof that the majority customers would pretty have? It is merely this – the provision by a vendor of a 2% Effectivity Bond (PB) to the consumer.

THE USUAL VERIFICATION & CONFIRMATION APPROACHES

In a phrase, the identical previous proofs and proof of crude allocation and availability provided by sellers to potential customers, is usually the provision to the Purchaser of the cargo’s PROOF OF PRODUCT or POP. In a C.I.F. or F.O.B deal, as an illustration, the on a regular basis technique by which a supposed crude oil vendor reveals “proof” or proof to a potential purchaser that the Vendor has an actual crude allocation or crude obtainable to advertise, is for the seller to provide the consumer the PROOF OF PRODUCT, and the consumer is requested to “affirm and ensure” the authenticity of this on his private, and, upon that, for the customers to problem their Monetary establishment Guarantee or Letter of Credit score rating (or completely different payment instrument) to cowl the acquisition value of the product at provide.

Nevertheless the problem with this typical methodology, is that for a lot of worldwide crude customers, the widespread Nigerian vendor’s POP (an array of paperwork that will embody the current loaded vessel paperwork, current Authority to Board (ATB) that was notably issued to the preliminary purchaser (consignee) of the crude in whose establish the vessel was issued, Certificates of top quality, Certificates of origin, Cargo manifest, Vessel ullage report, Certificates of quantity, Bill of lading, the Bulk Allocation Particulars, the Vendor’s Authority to Promote (ATS) from the NNPC, and so forth), is NOT reliable or readily verifiable for genuineness. As an example, the POP, which is, in a phrase, the seller’s important doc that’s meant to point out to the consumer that the seller actually has the product being supplied, could also be exhibiting that an proprietor of the oil allocation or commodity has possession of the product as of the exact time of the transaction, say, at a certain hour of the day proper now. Nevertheless however, there is not a guarantee that the product might not have been supplied to a distinct purchaser merely hours, and even minutes, correct after that transaction, and that the commodity is certainly nonetheless obtainable available on the market or provide to the consumer.

“Most customers do not accept Nigerian sellers’ proof of product (POP),” says Sam Nelson, an skilled in crude searching for and selling methods and the creator of a primer on the subject. “On account of this, they (the Shoppers) want a tangible (Bodily) proof of product. The consumer would request that the seller study the cargo and present a verifiable inspection report from accredited firms like SGS, Q & Q or Robinson Worldwide sooner than they (the Shoppers) will structure a vessel for the transaction. It is as a result of some so-called Nigerian sellers have false declare over merchandise that under no circumstances existed they usually may forge paperwork to present as POP. Nigerian market must be adopted very fastidiously and all documentations fully verified.”

Nelson supplies: “Please do not give any inspection money to the seller. On a regular basis pay the money on to the inspection agency after they’ve collected samples of the crude oil from the mother vessel for chemical analysis to substantiate the usual and quantity of the crude throughout the vessel. Moreover, insist that the ATB (Authority To Board) from the vessel for inspection originated from the captain of that vessel. Do not accept any paperwork as real for individuals who did not affirm it from the captain of the feeder vessel. Any documentation from a Nigeria vendor need to be verified for authenticity.”

MOST DOCUMENTS OR PROOFS BY NIGERIAN SELLERS ARE VIEWED WITH SUSPICION

In deed, nowadays, the similar draw back of regular incapability to definitively authenticate actual crude allocation or availability, now pervades even situations the place “tangible, bodily” POP inspection has supposedly been made. And some customers uncover that even this cautionary advice by Nelson, that the customers should “insist that the ATB (Authority To Board) from the vessel for inspection originated from the captain of that vessel,” would usually not pretty work any additional in a number of situations proper now.

In a TTO deal, as an illustration, the precise truth of the customers’ representatives boarding the vessel to make an “inspection” or “affirmation” of the “loaded” vessel, is usually no additional a guarantee that the transaction is actually actual or respectable. Nigerian con males and 419ers who perform throughout the crude oil commerce, have been acknowledged to work with fraudulent vessel managers and captains or con males disguised as staff of the Shell/JV terminal operators. And Vessels confirmed as “pregnant” (i.e., loaded) even by the consumer’s representatives and his appointed SGS inspectors invited to return again aboard the ship on a presumed ship “captain’s” ATB doc, have been acknowledged to be actually organized by faux ship operators and ship managers and “captains”; and in such circumstances the consumer will solely be taking up a ship and cargo with FAKE Structure Get collectively Settlement executed between the consumer and faux ship supervisor, with no AUTHENTIC ship proprietor’s approval and no real transport paperwork. And as quickly because the consumer’s representatives aboard the vessel confirms that the vessel is “pregnant,” the consumer pays for the cargo, takes over the vessel, and the con males shortly break up the money and vanish. The consumer losses all of the items as a result of the respectable vessel proprietor under no circumstances licensed the captain to problem the CPA, and the necessary cargo transport paperwork used throughout the transaction are all merely faux.

Nigeria’s bureaucratic quagmire

And there may be yet another draw back involved in attempting to authenticate Nigerian crude oil paperwork. The problem of the bureaucratic quagmire associated to doing enterprise in Nigeria. One skilled vastly expert in doing crude oil searching for enterprise in Nigeria, put it this method to this creator: “NNPC Crude Oil Promoting Division, Abuja, is the authoritative provide to substantiate the Authority to Promote doc. Nevertheless you will spend an limitless time frame attempting to substantiate it. As with most Nigerian establishments, people use personal connections to get such paperwork, nonetheless that does not suggest that they may 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

Briefly, the aim is that almost all typical manners of verification and affirmation of crude oil possession and availability have grow to be considerably contaminated and adulterated by con artists and faux operators to the aim that many worldwide crude oil customers regard these methods as largely unreliable, too troublesome to substantiate, and fraught with intolerable risks. And consequently, there has developed amongst them what might proper now be known as a “most popular” methodology for determining an real and credible vendor of crude oil in proper now’s market. Such a vendor is only one who can meet one major requirement – particularly, is eager and ready to current the consumer a 2% Effectivity Bond upfront in a transaction.

What’s a Effectivity Bond or PB?

That’s, in a phrase, an insurance coverage protection doc issued for the seller by vendor’s monetary establishment or insurance coverage protection agency guaranteeing that the issuer pays a stipulated amount (a sum amounting, on this case, to 2% of the entire value of the cargo being purchased) to the consumer throughout the event that the seller breaches (fails to hold out) the phrases and specifics of the contract signed by the seller with the consumer. (The Effectivity Bond can also be posted inside the kind of a Cash Bond). The monetary establishment or insurance coverage protection agency which factors the PB acts as a result of the accountable “surety” of the bond

If a vendor contracts with a purchaser to position up a 2% PB – and is able to actually put up that bond alongside along with his monetary establishment or insurance coverage protection agency – the seller is, in a phrase, guaranteeing the consumer that if he have been to fail to hold out his obligations beneath that contract, his monetary establishment or insurance coverage protection agency, of their roles as a result of the “surety” of the bond, pays the consumer a sum amounting to 2% of the value of the crude being purchased, regardless.

WHY BUYERS LOVE THE PERFORMANCE BOND GUARANTEE

Shoppers love discovering sellers who can current them UPFRONT 2% Effectivity Bond, overwhelmingly viewing that as a result of the “most popular” selection as they ponder that probably the most safe, most reliable, most tangible, and most assured and least fraud-prone type of proof and proof of credibility by a vendor. Most consultants contend that if a vendor can present a 2% PB deal – and, what’s way more important, is certainly ready to place up the PB because of he has the financial wherewithal to take motion – it is nearly assured that the seller just isn’t going to fail the consumer throughout the exact execution of the deal, nonetheless will nearly definitely perform these obligations as contracted with the consumer.

Sam Nelson, skilled in crude searching for and selling methods and the creator of a primer on the subject, put it this way: “A contract with any of these bonds in place will seemingly be effectively completed. A bonded contract has the subsequent diploma of success than a non-bonded contract. A bonded contract is a bankable contract. The players have their money at stake and that could possibly be a superb trigger for them to hold out.”

And the Licensed Dictionary explains it this way: “The intention of a bond is to provide an incentive for the success of an obligation. It moreover provides reassurance that the responsibility will seemingly be fulfilled and that compensation is obtainable if it is not fulfilled. Effectivity Bonds guarantee for the satisfactory completion of a mission.”

There are a few explicit bases why customers and consultants actually really feel meaning:

1. Being able to place up a PB is a sign of financial credibility and expertise.

To have the flexibility to finance an exact posting of a 2% PB (which might suggest, as an illustration, on the current crude prices, 2% of, say, $200 million for a 2 million barrels cargo, one factor amounting to $4 million), a vendor will need to have some substantial financial means and sources.

2. Financial Worth and Penalty Involved In Posting a PB, is a Extremely efficient Disincentive To not Perform.

Sam Nelson: “The players have their money at stake and that could possibly be a superb trigger for them to hold out.” In deed, most customers, upon getting the 2% PB issuance from a vendor, would promptly accept that as equal to POP and forgo having to evaluation the POP.

3. The Common Con Man or 419er Will Not Have the Disposition, the Reputation & Financial Wherewithal to Submit a PB.

Robert Strickland of Strickland Associates, an expert New York vendor in crude oil affords, says as follows: “When you’re concerned with FRAUD! ONLY true Sellers that present a 2%+ Effectivity Bond are actual Sellers of Nigeria [crude oil].”

Sam Nelson, the crude oil affords skilled and creator: “These bonds are very important to protect the curiosity of the occasions involved for pointless losses as a consequence of fraud or full negligence.”

4. Being able to place up a PB is a steady indication to a purchaser that the Vendor has already been vetted.

Buying a PB is generally not an easy or automated issue. Sooner than a monetary establishment or insurance coverage protection agency would give a vendor a bond, the seller shall have passed by a rigorous utility course of, and may have met a set of stringent financial and character requirements and circumstances. Subsequently, when a purchaser will get a vendor who can, and does actually, put up a 2% PB, the consumer is type of assured that he’s obtained a good vendor, and one most unlikely to be a fraudster or a 419er.

For merely an occasion, one Syracuse, New York, insurance coverage protection agency requires candidates for a Public Growth job PB to provide them the subsequent devices, amongst others:

Surety Questionnaire Crammed Out Totally

Copy of Contract/Award Letter or Solicitation Letter

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

Ultimate 3 years Agency Income Tax Returns

Personal Financial Statements and Resumes on all householders of 10% or additional

Work in Progress Schedule (if related)

Insurance coverage protection Affirmation

A. Workman’s Compensation

B. Obligation Certificates

C. Key Man Protection

Supplier and Contractor Reference Letters

Schedule of Achieved Jobs

Monetary establishment Reference Letter

Agency and Personal Indemnification (GAI we offer)

Articles of Incorporation

Firm Determination

Job Worth Breakdown and/or bid specs

IN SUM

To most customers of crude oil throughout the worldwide open market, getting an UPFRONT 2% Effectivity Bond issuance from a vendor, is the overwhelmingly “most popular” methodology for doing a product sales/purchase deal. It is the selection they ponder to be probably the most safe, most reliable, most tangible, and most assured and least fraud-prone type of proof and proof of credibility by a vendor.

For quite a few causes and parts, quite a lot of which might be outlined above, most customers and consultants contemplate that if a vendor can present a 2% PB deal – and, what’s way more important, is certainly ready to place up the PB because of he has the financial wherewithal to take motion – it is nearly assured that the seller just isn’t going to fail the consumer throughout the exact execution of the deal, nonetheless will nearly definitely perform his private obligations as contracted with the consumer. Subsequently, in a deal of that kind the consumer has little or nothing to worry about concerning a potential hazard of fraud or rip-off. In consequence, customers love discovering sellers who can current them – who can actually put up – a 2% PB, and ponder that to be the proper proof and assurance of getting a good vendor, and one most unlikely to not perform the contract, or to be a fraudster or a 419er

NOTE: As with many points concerning many a Nigerian crude vendor, it’s one issue for a vendor to say to a purchaser that he’ll put up the PB, nonetheless pretty one different issue altogether for the seller to have the flexibility to actually do it, or to actually 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’ll be able to accomplish that. You presumably can readily obtain the exact major requirements you’d wish to fulfill in order so to grow to be robotically considered “confirmed” as a extremely LEGITIMATE vendor who truly genuinely has some crude to advertise. USE THE AUTHOR’S FIVE BASIC OPTIONS PROGRAM.

Merely ship an e-mail and simply ask for “the FIVE OPTIONS.” CONTACT THE AUTHOR ON THIS ONLY BY EMAIL, PLEASE, at: [email protected] OR [email protected]

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