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Match the following English expressions with their Russian equivalents.
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| 1) to recruit somebody 2) privileged club 3) to move up into the next level 4) to get a return of money 5) downfall of schemes 6) the main goal 7) to provide security 8) to exchange ideas 9) charity 10) to conclude | a) получить возврат денег b) обмениваться идеями c) благотворительность d) подниматься на следующий уровень e) вербовать, набирать f) элитный клуб g) провал схем h) делать выводы i) обеспечить безопасность j) основная цель |
Complete the sentences. Use the text if necessary.
1) You will likely first get involved in a local pyramid club when....
2) It is typical of locally-based pyramid schemes....
3) Modeled on the success of home party sales, a series of "ladies only" pyramid schemes, which are known by the names....
4) The key to the downfall of such schemes is that....
5) Avoiding law enforcement aside, the influence one person has on another is greatly enhanced when....
6) One industrious advisor who gives opinions on the legality of the schemes to groups being investigated by authorities, bases his argument on....
7) Eight Missouri women were ordered to pay....
8) The clubs and networks gained popularity in St. Francois after....
9) At four meetings held in Texas it's estimated....
10)Once people were told that they could "harvest" thousands of dollars in profits in exchange....
Explain in English the meaning of the following words and expressions.
1) Scheme’s promoter
2) Promotional informational meetings
3) Initial investment
4) Punishment
5) To confiscate
Give antonyms to the next words from the text.
legal, attractive, popular, success, poverty, to achieve, punishment, private
Ask 10 questions to the text.
Make up a short summary of the text.
TEXT 5. TECHNIQUES USED TO SELL FRAUDULENT INVESTMENTS
The "Three-Call" Technique
Some swindlers wait before turning up the heat. In their first call, the "warm-up", they'll try to build your trust by describing their firm's past success and the high quality of its research. They might ask your permission to send a brochure and call again without pressure to buy anything. Having sent a brochure, they will ask you to watch the paper for the stocks price and they'll call you back. Soon you will be rejected if you appear to be a professional or an official who might ask too many questions.
In their second call, they'll whet your appetite, telling you about a fabulous deal they "think" they can get you into. In their third call, you will be passed on to an "opener" who will set the hook with an initial sale of stock by appealing to your ego and desire to make money. They'll urge you to buy now or miss out.
A technique, often used, is to give two strokes, then to ask for a monetary commitment while avoiding money-related terms such as "buy", substituting instead, "grab" or "take" some stock.
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The Infallible Forecaster
One ingenious setup involves a person phoning you and quickly assuring you that, "No", they didn't want you to invest a single cent. "Never invest with anyone you don't know," they say. But he says he would like to demonstrate his firm's "research skill" by sharing with you the forecast that a certain stock or commodity is about to experience a significant price increase. Of course, the price soon goes up.
A second phone call doesn't solicit an investment either. He simply wants to share a prediction that the price of something else is about to go down. "Our forecasts will help you decide if it’s really profitable to work with us.
As predicted, the price subsequently declines. By the third call, you are a believer. You not only want to invest, but insist on it – with a big investment to make up for the opportunities you have already missed out.
You don’t know, that the swindler began with a calling list of 200 people. In the first call, he told 100 that the price would go up and the other 100 people were told it would go down.
When it went up, he made the second call to the first 100 who had been given the "correct forecast." Of these, 50 were told the next price move would be up and 50 were told it would be down.
The result: The swindler has a list of 50 persons eager to invest. After all, how could they go wrong with anyone so obviously infallible in forecasting prices? But in this case they were wrong, having decided to send a half million of dollars from their collective savings accounts.
The ways to Lure You In
Fraudulent investment promoters are glib and resourceful. In their sales pitch, they'll say that they have high-level financial connections; that they'll guarantee the investment; or that they'll got back the investment after a certain time. To close the deal, they give wrong statistics, misrepresent the significance of a current event, or stress the unique quality of their offering.
The story they tell must be believable but not perfect, and it must have some weak sides in order to encourage people to believe more. They will promote it as a terrific concept with superior potential, knowing that people focus on their emotions, not the facts.
Weak, greedy and foolish investors can be controlled and manipulated to tell others calculated lies, especially if they believe the information is confidential.
They will pump up the potential while assuring you that there is an expectation of near-term profits because:
– celebrities, major corporations or banks will be investing shortly;
– they are close to being on the shopping network or in a major catalogue;
– a favourable new geological report is coming out shortly;
– they are lining up a deal with a major distributor;
– they are negotiating with a major resource company or major pension fund;
– all trucks, cars, homes, computers etc. will be required to have the company's product;
– it has cutting edge technology that will cure all known illnesses;
– it will "change the world" by altering time and space.
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Soon a vague but romanticized business concept is replaced in your mind with a vision of this company, producing only money in vast quantities.
For the most investors the stock market is the most exotic mystery in their business, so it's easy for cons to make a new venture, especially if the press is writing about successful legitimate companies in similar industries.
But while they claim to offer investments in exciting sounding businesses, they fall far short of what they promise.
Aspect of Risk
Investment schemes usually promise outrageously high rates of return with no risk. They will promise you the investment chance without giving you any meaningful written information on the product. Even if you are provided with a prospectus, they are so financially complex that the information is meaningless to many, if not all investors; though this holds equally true for any stock issue.
"If this doesn't perform as I’ve just said, we'll refund your money without any questions." "Your return is guaranteed." "We are absolutely sure, that you can’t loose!"
A con man may become impatient or even aggressive if the question of risk is raised.
"Look, I've got better things to do than waste time with people who lack the courage and foresight, necessary to make money! This is a wonderful opportunity to realize a better return on this investment compared to any other you're involved in."
With this kind of put-down, he hopes you won't bring up the subject again. To make his pitch more credible, he may acknowledge that there could be some risk – then quickly assure you it's minimal in relation to the profits you will certainly make.
"Of course there's a risk. There's a risk in everything."
"Perhaps a return of 100% in twenty minutes sounds a bit unrealistic, but that's exactly how all our initial public offerings trade. That's a fact! All I ask for is your vote of confidence this time. I won't let you down."
Avoidance of Questions
There is no way to determine whether a sales call is honest simply by talking with someone on the phone. No matter what questions you ask, or how many you ask, skilled swindlers have ready answers. Their persuasive scripts include retorts for your every objection. They typically brush aside questions or concerns with vague answers or assurances.
The more they talk, the less chance you have to ask questions. As long as you stay on the phone, they'll keep trying to sell you.
"I know you get offers everyday from people who tell you they're going to make you rich. I can make it easy for you to make your decision based on actual facts." "I can't be lying. There are laws against that."
They will continue to ask questions, using the Socratic method where the questions have rhetorical "yes" answers, such as:
"You would at least be interested in hearing about such a fantastic investment opportunity, wouldn't you?" or, "You would like to make a large amount of money in a short period of time with little or no risk, right?"
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