What are Secured Investment Contracts?

March 20th, 2010

What are Secured Investment Contracts?  How do they work?

Secured Investment Contracts are a new kind of investment that can be made into a company like a stock.   The difference between a stock and a secured investment contract are huge.

Stock investments into companies are owning a part of a healthy company, as the stock prices rise and fall, you either earn money or lose some money on your investment, and when you want out, you just sell your stock for the profit or loss that it took in the time you owned it.

With Secured Investment Contracts you are buying corporate bonds in a company that are offered some obscenely high return rate of like 181% within the next year.  You are buying into a bond with the company saying they owe you money at a determined interest rate from anywhere like 6 months to 30 years or more.  They are like the US Treasury Bonds where you buy into a larger company, except the US Treasury bonds are backed by the US Government and the Secured Investment Contracts are backed by the private firm that you are buying into.

The US Government has a near limitless ability to raise capital to lend out more money or pay back the money it has borrowed and there is no question that US Government is going to fold and go bankrupt any time soon (with the recently Stimulus bill included.)  The private company that you would invest in, does not have the same ability to raise capital or have the long standing ability to fend off problems with cash flow.  So in short, just because you invest in a company, doesn’t mean they will be around long enough to pay you back on your investment and capital.

If the company goes under, then you lose your money or if you are lucky, you get a little bit of it back but not all of it.  You also have to take into account what order the bonds and debts are to be repaid if things do go badly for the company and they file for bankruptcy.

Invest carefully, and fully understand the full potential and downside of any trade that you enter into.

CUSIP Secret Codes For Secured Investment Contracts

March 10th, 2010

Secured Investment Contracts are not for sale on a public trading market like the New York Stock Exchange or other trading market around the world.  They are almost secret and require secret codes called CUSIP codes and knowing the right place to buy them from.

Either from an email or from someone who heard it from someone type situation.  A sample email for a secured investment contract might look something similar to this.

“What if I told you there’s an investment that could pay you 181% gains over the next 12 months…

“And that this money is SECURED by a legal contract…

“Would you be interested?

‘Well, how about if I told that your 181% gain is required BY LAW to be delivered on this EXACT date: June 15, 2009.

“And that in addition to a 181% gain, you’d also be legally entitled to collect 3 interest payments over that same period, bringing your total return to 227%…

“…Turning every $10,000 invested into $32,700, with almost 100% certainty.

“Still interested?

“Well, before I go any further, I should warn you: After reading this, you may never want to buy stocks, EVER again.

“That’s because this unique opportunity has nothing to do with the stock market… government bonds… mutual funds… or options.

“Instead, it’s something we call a “Secured Investment Contract.”

CUSIP codes could be found here as well in the investor section or under the debt section of their website.

Any secret codes that I find for a valid Secured Investment Contract will be posted here.


March 2nd, 2009

Vertis was one of the first publicly known Secured Investment Contracts on the market in summer 2008.  There were many emails going out about investing into Vertis and receiving a 181% on your return by June 2009.  A number which given the recent turn of the economy is very high and unbelievable.

The Ad for the Vertis Secured Investment Contracts read something like this.

“If you buy Vertis Inc.’s stock, you have absolutely no idea what’s going to happen to your money over the next 12 months. Maybe it’ll go up. Maybe it’ll go down. It’s impossible for anyone to say with any real accuracy. There are just too many variables. But, on April 16, 2008, Vertis offered a “Secured Investment Contract” with the following scheduled payout:

Payment date: June 15, 2009

Scheduled Return: 227%

In the last few months since I first heard about these invesments, I don’t know if they company is making due on them, or how those who did invest in the secured investment contract for Vertis are making out.  The company website is still live and active, which doesn’t say anything about the stability of the company.