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Re: MIHL Board post# 8067

Tuesday, 10/02/2012 3:47:31 PM

Tuesday, October 02, 2012 3:47:31 PM

Post# of 11811

"So what exactly is the problem?"



Tip of the iceberg....

VIRTUAL OFFICES

From the Better Business Bureau

http://www.bbb.org/blog/2011/09/virtual-offices-imparting-stature-or-deception/

Excerpt:
However, in recent years, virtual offices have become a breeding ground for fraudsters. The appeal of prestigious corporate addresses at dirt cheap prices has given scammers and questionable businesses an advantage not previously available with traditional P.O. boxes: a greater sense of legitimacy. It’s apparent that 21st century boiler rooms have become much more attractive.

From Businessweek

http://www.businessweek.com/stories/2008-03-26/suite-scams

Excerpt:
But those dirt-cheap rents have also made virtual offices a breeding ground for fraud. Regulators and prosecutors have brought dozens of civil and criminal charges in recent years against defendants who used such spaces as their home bases. In the financial world, virtual offices are the new boiler rooms, the now infamous operations in which an army of young brokers hawk questionable stocks to naive investors. Virtual-office schemes have many of the same hallmarks. An outfit with a generic name and trumped up accomplishments develops an impressive Web site and adopts a prestigious address. The ringleaders then go to work raising money for supposed investment funds, real estate ventures, or other seemingly lucrative opportunities. The ruse works best with out-of-state investors, since they're less likely to pop into the office for a surprise visit. "