Professional Standards

G8plus will not be involved when entrepreneurs have the following characteristics.

Promises of high returns, with little or no risk, are classic warning signs of fraud. Every investment carries some degree of risk, and the potential for greater returns comes with greater risk.  Investors should be skeptical of any investment that is said to have no risks.

Not in Good Standing. Any company, including limited liability companies and limited partnerships, seeking funding should be listed as active or in good standing in the country where it was incorporated or formed.  Every company must file and pay annual taxes in order to maintain its good standing.  Each country maintains a publicly accessible online database of its companies. Potential investors should be wary if the company you are being asked to invest in cannot be found in the records of the state it claims to have been formed in or if it’s not listed as active or in good standing.

Problems with Investment Documentation. The U.S. Securities and Exchange Commission warns potential investors to avoid an investment if the entrepreneur will not provide a potential investor with anything in writing.  A legitimate private offering will usually be described in a private placement memorandum, or PPM.  Similarly, sloppy offering documents that contain typographical, spelling, or other errors can be a red flag that the investment could be a scam. The same applies for other countries.