The Klarenbach Report, Dec 6
It’s the little things.
The Capital Alternatives Ponzi scheme discussed in the previous columns promoted high-yield returns with several investment vehicles.
Milowe Brost, a Capital Alternatives founder, was an excellent speaker and marketer, providing detailed information on how to achieve financial freedom using the provided investment vehicles. In addition, methods to avoid taxation of our home country using offshore companies and an international passport were also provided.
Wait. What? An offshore company and an international passport? That gets my attention.
I have no idea if an international passport exists, but the idea that you can have a separate identity was intriguing to this, ahem, “part-time” conspiracy theorist. Keeping with the theme of outwitting the government with the international passport, it was appropriate to substitute your given name for a comical or witty name. Milowo stated that he used M. B. Gone. Get it Milowe Brost gone? Witty, right? Witty tactics, effective at selling the idea that we can outsmart the government were well received in this room. A little thing.
The presenters, Milowe and Jim Lavender were skilled in public speaking with extensive sales experience and were very effective and eager to pitch their product; however, they were not so eager to be questioned. A gentleman from Red Deer with an electronics business questioned Jim about one of the investment vehicles. Jim responded, “What, you do not trust me?” Hey buddy, we have only known you for a few hours, and your entire spiel has been about how to hide your assets and disappear using an alias, and you expect us to trust you? However, Jim’s shaming of the gentlemen was effective as the question went unanswered and discouraged further questions. A little thing. Jim asked the youngest person and only farmer in attendance, standing out with his polo shirt, jeans and Bic pen in a room of mock turtle necks, sports coats and big, fat, heavy pens that signified success, “Why are you here?” My response to the question was, “I am not happy with my station in life.” at which point Jim mocked me for my response prompting consideration of a throat punch. A little thing.
Several Structurists were encouraged to share their Capital Alternatives experiences with me during lunch. The first experience shared was of an incorrect monthly financial statement; however, it only took a phone call to correct the mistake, and all was fine. This struck me as odd. Why was the statement incorrect? A little thing.
These statements would arrive by postal mail in unmarked envelopes with no return address. Instructions were also provided not to consult with or share these statements with lawyers and accountants, as they would not understand the complicated investments and business entities. A little thing.
In the coming weeks, I will share more of this experience, what I learned and why it did not pass my BS detector.
In the meantime:
Trust your intuition.
Spend your time wisely.
Pay attention to the little things.
Trent Klarenbach, BSA AgEc, publishes the Klarenbach Grain Report and the Klarenbach Special Crops Report, which can be read at https://www.klarenbach.ca/