FBI raids local business scams that promises smalll businesses grants

[Harold Mansfield]

I am almost positive that one of my old employers is part of this scam.
A while back some of my old coworkers told me that they were working for this guy and he had a new business where they were promising business owners grants and stimulus money..for a fee.
I knew right away that it was a scam, but it is amazing how many business owners didn't and were taken.

I just thought it was important to post because when you are starting out and need funding, you can be a prime target of such scams.

FBI raids NV businesses accused of scam - My News 4 - KRNV, Reno, NV (http://www.mynews4.com/story.php?id=29647&n=122)

This was in Las Vegas, but I am sure that there are similar "businesses" elsewhere.

[vangogh]

Interesting. Have you been able to confirm one of your old employees was involved in the scam?

It is sad people like this will take advantage of small businesses (or anyone for that matter). Still this should be an easy one for small businesses to sniff out. Then again the story did seem to indicate quite a few had fallen for the scam.

[Harold Mansfield]

Interesting. Have you been able to confirm one of your old employees was involved in the scam?

It is sad people like this will take advantage of small businesses (or anyone for that matter). Still this should be an easy one for small businesses to sniff out. Then again the story did seem to indicate quite a few had fallen for the scam.

It was actually my old employer. I haven't confirmed that his is one that was raided, but I have confirmed that this is exactly what his business was. The exact same thing.

It's easy to scam people when they are desperate, greedy or just want to believe against all common sense.
It should be said that there are legitimate consultants that can help you prepare your paper work correctly when applying for a grant...it's actually a good idea to consult one for that purpose, but no one can promise you that you will be approved or get the funds.

[vangogh]

Oh sorry. Didn't catch the 'r' in there and I read employee instead of employer.

True about being able to scam people who are desperate or greedy. This one just seemed like an obvious scam for anyone who could hang on to reason for a few minutes. If I understood right they were guaranteeing to be able to get government money, but the business would have to fork over a few thousand up front. It's not really how the government works, but yeah I guess if you need or want the money that bad it's easy to be convinced.

Also true about the legit consultants who help you prepare your own paperwork.

[Harold Mansfield]

I actually talked to one of my friends a while back who worked there for a few days and quit.
From what he told me, they didn't actually promise that you would get the grant, they just insinuated that they have mastered the formula and have gotten tons of people money in the past so your chances are better with them. They actually teetered right around the law of what you can and can't say..the guy is smart that way. He knows how to insinuate without actually breaking the law.

They basically cold called businesses and pitched them, which is why my buddy quit..cold calling sucks. Especially cold calling people and asking for $3500. The other reason was he said that he didn't want to be there when the FBI kicked in the door. I mean everyone knew there was something wrong with it from day 1.

Here's the good part...the fee was $3500 up front and if by some luck of the Gods you actually got the grant, it was an additional $3500.

[vangogh]

Operations like this usually get close to the edge of lawlessness, but try to stay just inside in case they get caught. Sounds like they were hoping to remain inside the law, though perhaps they pushed things a little too far if the FBI got involved.