All about Fraud and Scam
We do not engage in this type of trading and we will NEVER provide any proof of product to any Buyer who cannot or is not willing to show his financial capability first. And we only trust our bank to verify this by talking to Buyer’s bank after receiving an RWA letter.

Unfortunately there are too many fake buyers and sellers and due to this, some strict procedures are put into place from real entities to purely eliminate and combat these fraudsters and time wasters, which also disseminate sensitive documents to multiple brokers on internet FISHING. These documents eventually end up in the hands of counterfeit groups and back on the internet as offers through other fraudulent companies. It's a vicious circle and the product is all an illusion.
 

Fraud and Scam destroy business and relationships. Of course there is no 100% security -  but we are very near to it. Our best protection is just good enough for our Buyers.

            Understanding and Principles of the Commodity Trading Business

Principles of Trading

There is a huge amount of misinformation circulating regarding various elements of the trading business, especially commodity trading and in particular Petroleum. Some of these false facts have resulted from simple misunderstandings which have then been widely propagated by “experts”, “experienced traders” and “bankers” (which apparently often are not aware what nonsense they spread), and other untruths have been deliberately engineered by unscrupulous players in the commodities market who try to scam honest traders.

The following tries to clarify some of the more common procedures which are likely to be encountered in the course of commodities trading.



General Information

Agreements or contracts can only be regulated by the laws of one jurisdiction. This is because international contract law states that a contract cannot be regulated in multiple jurisdictions due to potential legal conflicts in various jurisdictions making the contract unenforceable.

It is not necessary, nor is it advisable for buyers to send personally identifying information, or sensitive information via a broker. This includes things such as bank account details, passports, and so on. It is advised that this type of information is only sent directly between the seller and the buyer or their direct representatives (with written POA).

The seller should be open and forthright regarding providing proof of product (which we process only through our banks once we got approval for buyer's funds) and other relevant information to the buyer as well as the buyer should be forthright in providing proof capabilities to the seller confirming that they capable and funded for the purchase (which we only expect from Buyer's bank). There is no need for secrecy; and indeed, an unwillingness to divulge necessary or pertinent information between both banks should be considered a red flag for a potential buyer or the seller. Common sense and standard between real buyers and sellers is that a Buyer starts the banking sequence by POF through a low cost bank signed RWA letter. Commodity trading is nothing like shopping in a warehouse where you see the goods in front of you. There are too many tire-kickers in this market which require POP as a start – frankly speaking this proves their fraudulent approach. Why shall a seller answer a buyer which has not shown his capability to perform? It would keep him busy 24/7 without any positive result.

Generally any buyer which will not provide or is unable to provide financial capabilities are most luckily using exit buyer’s funds (this type of transaction is more commonly called FLIPPING, and of course absolutely legal) and requires the FLIPPING buyer to access proof of product in order to receive a financial instrument from their exit buyer assuming that they actually have one, which in turn provides them the funds necessary for the bank to issue banking instruments to the real seller.

Understanding normal trading laws, one cannot sell something they don't own and as such cannot be as a seller since the physical product is not owned. A true seller is an entity which owns the product or owns an allocation in his name; this permits him to sell the said product as title owner or holder and he is certainly able to prove his ownership to a genuine and financially capable buyer once verified. This in most cases is done bank to bank, it is deemed the safest way to exchange documents and a lot of buyers and sellers will request to only transact in this manner. This is indeed our way – the only secure way for both parties.

Buyers which cannot provide financial capabilities or have no financial means to purchase the product in the first place, are in reality only brokers and scammers trying to maximize their returns by overpricing the product as sellers (2nd and 3rd hand sellers) and generally hide behind a new, fancy and recently registered company. These brokers act like above mentioned FLIPPERS and in most cases unless they have an exit buyer ready, they will need to shop around with seller's proof of product documents to acquire a financial capable buyer to bring to the transaction (this practice is more commonly described as FISHING FLIPPER) 

We do not engage in this type of trading and we will NEVER provide any proof of product to any Buyer who cannot or is not willing to show his financial capability first. And we only trust our bank to verify this by talking to Buyer’s bank after receiving an RWA letter.

Unfortunately there are too many fake buyers and sellers and due to this, some strict procedures are put into place from real entities to purely eliminate and combat these fraudsters and time wasters, which also disseminate sensitive documents to multiple brokers on internet FISHING. These documents eventually end up in the hands of counterfeit groups and back on the internet as offers through other fraudulent companies. It's a vicious circle and the product is all an illusion.

 

FLIPPING and FISHING make up 90% of the commodities fraudulent market enquiries for sellers and buyers. If any seller is willing to email you proof of product, it will be a 99% fake document and it is not a genuine seller. 


Note
The maximum amount of any international trade is $500 million. Amounts exceeding this limit will be frozen and investigated, due to the growth of terrorist activities in the past decade. It is not wise to enter into transactions which require more than $500 million to be moved at one time.

For our protection against Spam and other approaches which refrain us from working with our verified Buyers and Partners we send our contact details only to customers, which have already sent their credentials to us. Every genuine Buyer and Seller is aware of the fact that almost 99% of this market is populated by non-genuine participants. As a Producer and Seller we have to consider these facts.

All our documents are protected against unauthorized access. Of course we are aware that everything can be abused and faked. We cannot change the Petroleum market and its bad reputation. But we do our best to protect YOU and US against fraudulent approaches in our name. 
Our paperwork has a dedicated backgroundcolor and is always on our letterheads. Each and every document is protected against changes and only fields which shall be filled are open for changes.
Each document as SCOs, FCO, SPAs or other legal paperwork carries a unique QR-code with a serial number and other information in it. Please read the note below if you are a victim of any fraudulent approach. We highly appreciate your cooperation and hope we can make this susceptible market a bit "cleaner".

 

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