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West Virginia Shuts Down Advanced Fee Loan Scheme

Canadian Scam Artists Fleeced Consumers Through the U.S.

March 24, 2006
West Virginia Attorney General Darrell McGraw, Jr. said he has shut down a Canadian advanced fee loan scam operating under the name Global Capital Solutions.

McGraw said he learned of the scam last week after his Consumer Protection Division began receiving complaints from consumers across the country. Consumers who had been ripped off were calling the West Virginia Attorney General's Office because Global Capital Solutions represented that it was located at 180 Capital Street, Charleston, West Virginia - an address that does not exist.

Consumers complained that they were contacted by Global after submitting online loan applications. Some consumers applied for a loan directly on Global's website. Others filed applications on another major lender website who apparently referred the loan to Global.

Global told consumers they were approved for loans through "private lenders," private individuals willing to invest their money by making small loans to other private individuals.

Global also told consumers that before they could receive any loan proceeds they must wire lump sum advanced payments by Western Union to the private lender. All of the "private lenders" were located in Canada.

Global told the consumers that their loan proceeds would be direct deposited into their bank accounts after their deposit was received. However, after wiring their advanced payments, consumers said they did not receive the loan proceeds and Global stopped responding to their telephone calls and emails.

Global allegedly sent some consumers fake certified checks that appeared to be drawn on a Bank of America account. These consumers were instructed to deposit these checks into their personal checking accounts, then withdraw a portion of that money and wire it to the private lender in Canada.

At least one consumer reportedly deposited the fake check, wired the money, and is now in debt to his bank for $3,500.00, the amount of the fake check.

Working in conjunction with Allan D. Weiss, a solicitor and barrister with Kronis, Rotsztain, Margles, Cappel located in Toronto, Canada, McGraw was able to get Global Capital Solutions' toll free telephone number - 1-800-228-9861 - disconnected on Thursday, March 16, 2006. McGraw also shut down Global's website - Global-Capital-Solutions.com.

McGraw says any consumer accessing this site will now be alerted to Global's fraudulent activities and redirected to his website for more information. Global's website and telephone number had only been in operation for six weeks.

"Canadian authorities have linked the majority of advance fee loan scams originating from that country to organized crime," McGraw said.

"When consumers submitted the loan applications, they provided the bogus company with their social security numbers, bank account numbers and photocopies of their drivers licenses. These consumers are now prime candidates for identity theft."

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