--------------------------------------------- Issue 7-
HYIP NEWSLETTER - stay up to date in the hyip world!

http://www.hyipinvestment.com
http://www.hyipdiscussion.com
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DISCLAIMER: All information in the HI Newsletter is neither an endorsement nor a solicitation of any sort and cannot be considered as a promotional offering. We do not provide free professional consulting on investment options or personal assistance with recovery of deposited funds.
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in this issue:

1. News on most popular programs
2. Due Diligence And Its Aspects
3. Program Snapshot: 4xClub

News on most popular programs

PIPS (People In Profit System): Information from the TG forum on Bryan Marsden, the CEO of PIPS, having problems with legal authorities proved to be false. Bryan encourages his program's members not to open new forums, since some people spread lots of libel about PIPS. Completion of pending withdrawal requests can be expected shortly.

Global Mutual: A few major adjustments on the corporate concept of the company's business have been conducted. A complete update has been posted under the "News" section on the program's website at the following link: https://www.global-mutual.com/index.php?a=news

StudioTraffic: ST is planning to initiate interesting contests and conferences for its members. If you are in this program, we recommend you to keep an eye on the "Events" section of its website for more pleasant surprises to be announced shortly.

Reality Millions: RM's website is now closed to facilitate the "transitional phase" which is supposed to be the final phase of the program. No technical difficulties are being declared by the admins anymore. The release of the program's new system is expected between June 26, 2005 and July 4, 2005.

You can discuss these and many other programs with fellow high-yield investors on our forum at http://www.hyipdiscussion.com

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Due Diligence And Its Aspects
(in co-operation with www.HYIP-Navigator.com E-magazine)

Just to start out, each of you has probably heard that "high yield" means "high risk". Programs generating high returns are normally involved in risky and volatile fields of capital management, such as currency operations, stock exchange, sports betting, metals trading etc. It is clearly understood that safe investing is not the issue in this case (except for very few programs with unique business concepts, proven by years of experience). The first thing you need to be aware of is that there is always a chance to lose part of your money, to receive lower profits than you expected or to face a delay in payout for whatever reason. Nevertheless, it doesn't happen at the same time with all programs, - so if you have diversified well, it will not really matter if one of, let's say, ten programs from your portfolio is undergoing shortcomings of some sort.

The problem is to make sure that all of the programs you are invested with are real businesses instead of being mere pyramid schemes, where returns are paid from the investments of new members, and when the pyramid reaches its peak (in other words, when its admin decides that he's got enough money to retire), it collapses and you are left with nothing in the majority of cases. The sole of this trick is based on the fact that most e-currencies offer anonymous and irreversible transactions. It means that even if you complain to their administration/support with a claim stating that "an account holder # XXXXXX has scammed me off $YYY USD", you will receive a ridiculous response advising you to consult legal services in your country of residence or to obtain a court subpoena for further investigation to be executed. Certainly, you will most likely choose not to do so for one simple reason - the services of a lawyer will cost you way more than the amount of money (normally, a few hundred bucks) you have invested with that program. Even if you turn out to be persistent enough and contact the appropriate law enforcement agencies, it will not help you in any way, since the scammers use fake names (or stolen identities, just the way it was in case with "Intellekt-Kapital" - a huge scam, run from Germany. Hanover city police proved to be unable to catch the crook behind it, since he was using the name of another person who has never even heard of that program). Hence, it is better to avoid scammers than to go after them once you lose your hard-earned money.

What are the ways of verifying the validity of a particular program's business? Ideally, it is a personal meeting with its administration where you can ask any questions, check out the original registration and identification documents and even take some pictures. But what if you live on different continents and a plane ticked would cost more than the total amount of your investment with this program? In this case we would suggest you use some recommendations we are about to give you in this article.

When it comes to online investing, the first thing you should do is check out a program's website. Pay special attention to its design. Is the program using a primitive template with a standard collection of FAQs (Frequently Asked Questions) and senseless modalities (such as "backed by Forex", "experienced traders", "corporate backing", "inner workings", "work behind the scenes" etc.) in the explanation of its business concept, with no actual names and contact details being specified? If so, just pass it.

Another important step is checking the domain registration data of a company's website (also known as "WHOIS data"). Actually, it can tell you much more than you would ever expect. The best way of obtaining this data is going to http://www.dnsstuff.com or http://www.whois.ws and typing the address of the program's site. Once you hit "Enter", a complete list of contact details will be displayed on your screen.

First of all, it's the name and the contact details of the registrar. For instance, if an allegedly large and credible international stock trading company with a fancy name is using a cheap web-hosting service, located in one of the "third world" countries, this fact is definitely worth giving it a thought.

Secondly, you should pay attention to the dates of domain registration and expiration. If a company says it has a few years of experience in working with online investors, but their website domain was registered only a couple of months (or even weeks) ago, it is obvious that they are lying. Alternatively, if you have just read an article of theirs about the program's long-term plans for the future, and then you see that their domain registration expires in less than half a year, the chances are that it is nothing but another scam.

Thirdly, it is the actual contact details which are part of the WHOIS data. They normally include an e-mail address, a physical address, and a telephone number. You might be willing to give a call to the number specified to make sure it's not made-up and really belongs to the person listed there.

Once the WHOIS check-up is complete, you can move on to the verification of the company's documents. There are three basic types of documents to be verified: registration certificates, trading history or copies of contracts, and bank reference letters. Once supplied with these documents, you are ought to contact their issuer in order to confirm the validity of these documents. The name of an organization/agency which has issued a particular document must be specified on the document itself. Then you just enter it into a search engine (e.g. Google.com) and look for a phone number or e-mail address of the issuing institution. It would be best to provide them with a faxed or scanned and e-mailed copy of the document to ensure the most precise verification (quite often companies have similar names or even worse - use other businesses' brands without their permission). In case an investment program has provided you with a weird registration document compiled in a foreign language, do not hesitate to ask them for a copy of their bank reference letter. Even minor financial institutions involved in international banking are listed on the Internet, altogether with their contact information.

The third stage of Due Diligence is a personal meeting with a program's staff (if they agree, of course). In this case it would be good to invite a friend who is a lawyer or a businessman to go with you. That way they will not be able to lie about their business activities or past performance. Also, don't forget to bring your camera with you in order to take some pictures of the admins.

In conclusion, we would like to advise you not to invest what you cannot afford to lose and to diversify between five to ten different programs. Also, remember to take your initial deposit out as soon as possible, and re-invest part of your profits. If you follow this strategy, you will never lose any money, no matter what the outcome is going to be.

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Program Snapshot: 4xClub

-Brief Description

4xClub (www.4xClub.com) is a strictly private program involved in currency trading on Forex. The company's work is based on complete transparency, with the trading history being available to its members at any time. The program's financial records are subject to permanent update and publication on the program's website. Upon being invited to the program, you are required to make a deposit within the first three weeks - otherwise, your account will be deleted and membership terminated. 4xClub is always open to any verification of its business and the audit is performed on a monthly basis. The company strictly abides by international laws to exclude the possibility of illegal financial activities taking place within its program.

-Business Model

The program's concept is based on purchasing its electronic shares as a form of securing one's deposit. The price for the shares is constantly increasing as the company's activity on Forex progresses. The average monthly increase is currently fixed at 8-15%. Shares can be liquidated (sold) at any time after the initial holding period of 30 days. Once you do it, the corresponding amount of money appears on your internal account balance, available for withdrawal. Both for deposits and withdrawals the program is using the following payment options: bank wire, E-gold, and E-bullion. If funds are being withdrawn via the above-mentioned e-currencies, a 3% fee is applicable. If you wish to avoid the withdrawal fee, you can request a regular check to be mailed to you. The minimal deposit is US$1000 at no maximum being imposed. You can invite new members to the program only if you have not less than US $20 in the company's shares.

-Website and Customer Support

The company maintains a very professional website, with an SSL certificate being used. The internal account is clearly structured and subdivided into separate sections, enabling members to conduct different operations with their shares (such as purchase and redemption). An extensive customer support is offered via e-mail, with a response being provided within the next 24 business hours.

-Our Opinion

Despite the fact of the company remaining private throughout its entire history, it is quite well-known to online investors. It has been additionally verified that the reported financial operations on the global currency market have really been conducted by the company's traders. With the publication of a Legal Notice on the program's website, 4xClub has declared its legitimacy and willingness to abide by international business regulation. The members are fully responsible for any taxes, incurring from the profits they receive, and are allowed to participate only if it does not contradict the law of their countries. 4xClub has recently been added to the Feeder Fund pool, known for its precise verification procedure, preceding its co-operation with any investment program. Taking into consideration the serious business approach the company is pursuing, we tend to believe in its longevity and further growth in the near future.

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If you are an admin of an investment program and would like it to be reviewed in our newsletter, feel free to contact us by e-mail at bravehoststamps@yahoo.com
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DISCLAIMER: All information in the HI Newsletter is neither an endorsement nor a solicitation of any sort and cannot be considered as a promotional offering. We do not provide professional advising services on investment options or personal assistance with recovery of deposited funds.
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