Hello guys
I'll share my story with you all to see what you think.
I began working at a wealth management firm 6 months ago and everything is really weird:
-Returns offered to clients are way too high and stable on both main products we offer.
-Product 1 consists on a portfolio based on a fund of bonds and an "automated futures system". This returns around 15% to clients. Fully stable, if a client got offered 5 years ago 14%, he will get paid monthly ALWAYS the same amount to comply with that 14%. Always. AFAIK there are no products on the market that offer these kind of returns with that stability, not even close.
-Product 2 are individual trading operations. Partner justifies them internally as using privileged information. That in itself is a crime, but I even doubt that those operations are real to begin with. They usually entail traded companies from multiple sectors that are undertaking a new shares issuing. He explained to me once that what he did was buying in bulk to existing shareholders, then selling in a few days, then buying again somewhere in the middle of the shares issuing. This allegedly generates around 50% return per operation and clients get offered from 20% to 35%. I still need to do more research on this, but those kind of returns I believe would only be possible using a lot of leverage, and typically those companies aren't that liquid.
-Actual investment account are kept offshore and partner doesn't share any information about them. In onshore bank accounts always previous investors get paid with new ones. Have not yet found traces of international transfers, although I´ve checked 6 months. I'm working on it.
-Tax fraud is a given, accounting is all made up, we use more than 30 companies onshore so that none gets big enough and when trouble comes you close it quickly not paying tax debts. Partner is also insolvent, and pays no tax despite spending half a million a year in a poor country.
Ideas?
