William (Bill) Tynkaluk, the senior Director at Leon Frazer & Associates, Inc., a Canadian firm, sold the firm's clients, and non-clients, what he described as a unique High Yield Investment Program (HYIP), guaranteed by Tyunkaluk to return 400% interest, per annum. The only problem was, the investment program did not exist.
High Yield Investment Programs are fraudulent schemes that rely upon a promised extraordinary return upon investment to trick the victim into participating. In truth and in fact, there are no such programs available, anywhere, anywhere, that pay such amazing rates of interest. It promises a fiscal impossibility, that succeeds, based upon the greed and avarice of the victims, who fail to conduct even rudimentary due diligence, before investing, and who never recover their money, let alone make a profit. HYIP schemes often dazzle their intended targets with stories that seem to be too good to be true, because they are.
Broker-dealer William Tynkaluk entertained those investors whom he sought to participate in his $10m financial fantasy, at Toronto's prestigious Albany Club, at Leon Frazer's expense, where he introduced his marks to the "financial professionals" who offered the HYIP, for which referrals Bill T would earn substantial commissions. those investors who did not have the entire $10m were encouraged to pool their money, and several were known to have done so. The victims relied upon Tynkaluk's long association with Leon Frazer, and his promises of unbelievable returns upon investment, to their damage and detriment.
Tynkaluk actually had the temerity to warrant that the program was being operated through the US Federal Reserve, and even distributed written materials to that effect. The materials were, unfortunately, created by brokers, and the Fed had no part in this scam, though the victims were suitably impressed. Other evidence of payment, by the victims does, fortunately exist,
Once paid, not only was the HYIP investment never seen again, let alone a return, and victim resulted in promises to inquire, but no follow-up by Tynkaluk was known to occur; excuses were politely offered, but since the investment, though seemingly guaranteed, was made through a third party, Mr. T was not responsible, though the badges of fraud were painfully evident.
Let us hope that the wheels of justice turn swiftly, and that all those individuals, and companies, that illegally profited from the sale of these totally bogus HYIP investments, be punished for their role in the fraud.