What is This Scam?

[HeyHomie]

From the classified ads in the local paper:

MILLIONAIRE
Work side by side self-made multi-millionaire acquiring foreclosures in Spfld., IL.
Receive $5K per property
or split profits 50/50.
Mrs. XXXXX 417-yyy-yyyy

---

And BTW, 417 isn’t a local area code.

[Shagnasty]

I have no idea what the real deal is but I have seen something similar. It could be a finder’s fee for very specific types of property. The ad may want a lot of people evaluating properties for free and giving good leads. The rules may be strict with the money only given when the property is required. 5K may be a bargain for that person or company.

The tried and true scam might be to make people pay to get information on how to get into the “business”.

[griffin1977]

At some point, sooner or later, the respondent will be asked to lay down some cash. If I had to hazard a guess maybe pay a part of the deposit one of these “foreclosed properties” (or even just to pay the “auction fee” or to buy “catalog of foreclosed homes”). At which point Mrs. XXXXX will suddenly become rather hard to get hold of…

[Alex_Dubinsky]

The finder’s fee sounds pretty reasonable, but no one serious is going to title their ad “MILLIONAIRE.” I guess it might make sense for a conman to create this persona, though.

[hajario]

Do a Google search on the full phone number. If it’s a relatively well known scam, there will be some hits warning about it.

[Sigmagirl]

A little Google-Fu reveals that the ad is running in a number of papers and on various sites, mentioning “foreclosures” in Dallas-Fort Worth and St. Louis. The phone number leads to this site:

LegacyOneInc.com is for sale | HugeDomains

which shows that the company offers “workshops” in various areas. If you call the number you will be making reservations to attend a workshop, at which you likely will be led into a multi-level type of program. In exchange for your investment, you will be assigned a “mentor” and given some printed materials about how to buy homes in foreclosure, and will sign an agreement to share your profits with the company.

From the Better Business Bureau in Southwest Missouri:

Based on BBB files, this company has an unsatisfactory record [BBB Definition: unsatisfactory record - A company has an “unsatisfactory business performance record”] with the BBB is based on the experiences reflected in BBB files. This file condition results when the company has failed to resolve or respond to complaints, repeatedly failed to respond or resolve issues in a timely manner, failed to resolve the underlying issues for a pattern [BBB Definition: pattern - More than 2 complaints involving the same allegations usually within 12 months that are significant in relation to the company’s size and volume of business. of complaints, failed to honor their commitment to mediate or arbitrate disputes or honor mediated agreements or arbitrated decisions, failed to substantiate, modify or discontinue false advertising claims that are challenged by the BBB, or failed to discontinue unauthorized use of the BBB name and logo, a Federally protected trademark] with the BBB due to failure to respond to one or more complaints and or two or more otherwise unresolved [BBB Definition: unresolved - The company failed to resolve the complaint issues] complaints.

According to customer experience, this company offers a program to assist in buying and selling real estate. Customers have stated the fees range from $1,500.00 - $7,000.00. According to customers they are told they will be locating property to assist an investor, who will purchase the property, and split the profit, once an acceptable property is located.

Complainants indicate they have experienced trouble contacting the help line for assistance. Complainants also indicate once they have located property they feel meets the guidelines, they either cannot reach the company in time to secure the property, or they are told by the company that the property does not meet the current guidelines.

Additionally, customers have difficulty obtaining refunds. The company responds to most complainants requests for refunds by stating that the customer has failed to meet the standards required for the transaction.
///
The BBB processed a total of 8 complaints about this company in the last 36 months, our standard reporting period.Of the total of 8 complaints closed in 36 months, 1 was closed in the last year.

So, while the ad may not be exactly a “scam,” I would say that it certainly is misleading at the minimum and doubtlessly deceptive practice. It should not be under “help wanted” but under “business opportunities,” if such exists; otherwise, it should disclose that there is an investment required.

It preys on people’s greed and fears by picking up on the current trend of foreclosures. It’s dirty for that already, before even getting into the BBB allegations.

Run away, run away.