Let's take a closer look at those steps -

1. Locating you, the victim:

Potential victims can be found in all sorts of places - country clubs, small airports where private planes are parked, cocktail parties, cruise ships, on the Internet, anywhere the con will find people who have extra money to spend and like the good life.

On the other hand, sometimes a con will merely play the game on someone who may not have a lot of money himself but who has relationships with others who do.  In that case, you will not be aware that you have been duped.  Or you may be made aware at a later date and threatened with repercussions if you do not continue to bring in money.  Trust me here - if that is the case, you'd better hightail it to the nearest law enforcement office and tell all!

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2. Gaining your confidence:

The first part of this step is to establish an affinity with you by mirroring your interests and beliefs.

Once you feel you have found a kindred spirit, the con artist will dangle the bait - "There's money to be made ... you are just the kind of person I've been looking for ... I need your help ... only someone as honest as you can be of service ..."

3. Steering you to the insideman:

In most instances, the middleman stars in the first two scenes.  Once you have been carefully manipulated into a state of confidence and excitement, the middleman introduces you to the insideman.

In today's world of financial scams, the insideman - the person running the show - is the often the one who directly approaches you.  If that's the case, then there is always the concept of someone higher up.

This higher-up person is frequently a myth, created in order to apply pressure on you once money has changed hands.  He is created to provide the con artist with an alibi, allowing the him the appearance of being at the mercy of a higher authority and therefore in the same fix as you, and therefore making him appear to be your friend.

Regardless of whether you are approached by a middleman or the insideman himself, the con artist will always present himself to you as one who has to respond to a higher authority, in whatever form will pose the greatest threat.

In High-Yield Investment Program fraud, this "higher authority" is the Trader, Commitment Holder, Trustee, or a bank that knows nothing about the fraud.

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4. Permitting the insideman to show you how you can make a large amount of money:

If you have been approached by a middleman, then you are placed in the position of having to "earn the middleman's trust" by proving yourself to be a worthy candidate for the higher introduction.

Once this is accomplished by means of producing or signing various documents such as a LETTER OF INTENT, PROOF OF FUNDS, NON-CIRCUMVENTION NON-DISCLOSURE AGREEMENTS (NCND's), POWER OF ATTORNEY, etc. you are then passed on to the insideman.

Depending on your character (greed factor, ego, financial experience, financial need, integrity...) the insideman may or may not explain that profits will be earned in a dishonest manner.

 If your need is great enough and your financial experience small enough, then the patina of legitimacy can easily be applied with the same ultimate result for the swindler.

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5. Allowing you to make a substantial profit:

For the swindler, this is the easy part.  Once you have turned your money over to the swindler, he only needs to hand you back a portion of your money after a certain period has elapsed, telling you that you have now received your first profits.

This is called a Ponzi scheme and is used in all high-end financial swindles.  You have now been officially made a victim.

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