The Ultimate Litmus Test: How to Verify if a Private Placement Program is Real or a Multi-Million-Dollar Fiction
By Taimour Zaman, Founder, AltFunds Global
In the high-stakes theatre of alternative finance, the Private Placement Program (PPP) is the ultimate stage prop. In the right hands, it’s part of a legitimate, albeit rare, financial production. In the wrong hands, it’s the central piece in a devastating illusion.
After a decade of scrutinizing these proposals, I have developed a forensic verification process. The goal is not to prove an opportunity is real, but to pressure-test it until it either proves its mettle or reveals its flaws. Fraudsters rely on hope and complexity to cloud judgment. This methodology is designed to reintroduce cold, hard facts.
Here is your step-by-step verification protocol.
Phase 1: The Initial Triage – The Instant Disqualifiers
If any of the following are present, terminate the discussion immediately. No exceptions.
- The Guarantee: The proposal promises “guaranteed” or “risk-free” returns. Legitimate institutional finance does not deal in guarantees of profit. This is the single most reliable indicator of fraud.
- The Unsolicited Approach: You were contacted via LinkedIn, WhatsApp, or email by someone you did not know, offering you access to a “top-tier bank program.” Legitimate PPPs are not marketed. They are privately arranged for pre-vetted institutions.
- The Upfront Fee: You are asked for any form of advance payment—an “application fee,” “due diligence fee,” or “security deposit.” In an absolute PPP, your capital is the investment; it is not used to pay middlemen. This is the scam’s revenue model.
Phase 2: The Document Interrogation – The “Show Me” Phase
If the opportunity passes the initial triage, your next move is to demand and dissect the core documents.
The Private Placement Memorandum (PPM): The Non-Negotiable Blueprint
- Your Demand: “Provide me with the full, unredacted Private Placement Memorandum.”
- What to Verify:
- Specificity: It must name the arranging bank and the issuing bank. Vague references to “a top-25 bank” are meaningless.
- Risk Factors: A legitimate PPM is dominated by risk disclosures. If it reads like a marketing brochure, it is fake.
- Legal Counsel: It should clearly state which law firm drafted it. You must then independently verify that the firm exists and, if possible, confirm their involvement.
- Fee Structure: All fees must be transparently laid out and flow to recognizable, regulated entities (e.g., banks, law firms). Opaque fees to unknown LLCs are a major red flag.
The Banking Verification: The Source of Truth
- Your Demand: “Provide a direct, verifiable contact at the arranging bank’s principal investments or structured finance desk.”
- What to Verify:
- Do Not Rely on the Broker: Independently find the main switchboard number of the named bank.
- Initiate Contact: Call and ask to be connected to the individual or department named in the PPM.
- The Test: If the person does not exist, or the department has never heard of the program or the “facilitator,” the opportunity is a forgery. This single step eliminates 95% of all scams.
Phase 3: The Process Scrutiny – How It Really Works
A legitimate process follows a strict, slow, and transparent sequence. A fake one is riddled with shortcuts and secrecy.
The Legitimate Process:
- Due Diligence on YOU: The bank will subject you to an exhaustive KYC/AML process. They will require proof of funds, the source of wealth, and a professional background.
- Asset Verification: Your funds are “blocked” in your own bank account via a Swift MT760 message, which proves you have the necessary capital. You do not transfer funds until a contract is signed.
- Legal Review: Your own independent legal counsel must review and approve the PPM and all contracts.
- Timeframe: The process takes 6 to 18 months. Anyone promising a faster timeline is lying.
The Fraudulent Process:
- Light Due Diligence: They ask a few questions about your background because they do not care.
- Pressure to Move Funds: They push for you to wire “blocked” funds to a third-party account or pay an upfront fee.
- Vague Timelines: They promise funding in “30–60 days,” which is impossible for a transaction of this scale.
- Secrecy: They insist the deal is “highly confidential” and you cannot speak to anyone about it, especially not the bank directly.
The Verification Checklist: Your Litmus Test
| Verification Point | The REAL Opportunity | The FAKE Opportunity |
|---|---|---|
| Returns | Performance-based and speculative. No guarantees. | Guaranteed, often outrageously high (e.g., 10%/month). |
| Private Placement Memorandum (PPM) | A lengthy, complex legal document naming the banks and lawyers. | Non-existent, vague, or a marketing teaser. |
| Bank Verification | You can speak directly to a verified contact at the arranging bank. | The broker is the only point of contact; bank names are dropped, but unverifiable. |
| Due Diligence | The bank conducts extreme due diligence on you. | Little to no due diligence is performed on you. |
| Fees | No upfront fees. Fees are transparent and paid to regulated entities. | Upfront “activation” or “due diligence” fees are required. |
| Timeframe | 6–18 months for the entire process. | “30–90 days” to funding. |
The Final Verdict: Trust, but Verify Everything
Verifying a PPP is not about finding one piece of conclusive proof. It is about assembling a chain of evidence where every link—the documents, the people, the process—withstands independent, skeptical scrutiny.
The most powerful tool at your disposal is not financial acumen, but the simple act of picking up the phone and verifying the central players through your own independent channels.
If a facilitator resists this, they have failed the most basic test of transparency. Walk away.
In this arena, the cost of gullibility is catastrophic loss. The price of vigilance is a bit of your time. It is the most valuable investment you will ever make.
👉 Secure your spot today. Book your private call here.
Disclaimer
The information provided in this article is for general informational and educational purposes only. It does not constitute financial, legal, or investment advice, nor does it represent a solicitation, offer, or recommendation to buy or sell any financial instruments.
AltFunds Global AFG AG (“AFG”) is not a bank, broker-dealer, or asset manager. All services are provided on a consulting and educational basis only. Any references to investment strategies, structured finance, or alternative capital programs are provided for illustrative purposes and may not be suitable for all readers.
AFG operates under Swiss law and aligns its communications with the principles set out by the Swiss Financial Market Supervisory Authority (FINMA). However, the content herein has not been reviewed or approved by FINMA or any other regulator.
Readers are strongly encouraged to seek independent professional advice (legal, tax, financial) before making any decisions. Past performance or case studies are not indicative of future results. No liability is accepted for any loss arising from the use of this material.