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Lead man accused of fraud with Iraqi money


Qman
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http://www.argusleader.com/article/20110319/NEWS/103190302/1001/rss01

A South Dakota man who banked hundreds of thousands of U.S. dollars by selling Iraqi dinars to investors outside the state has been indicted on federal fraud charges.

The case against 58-year-old online retailer Dave Olmsted of Lead is the first prosecution in the U.S. District of South Dakota for the unlicensed sale of the Iraqi currency, but officials say the investment scam has flourished throughout the country in recent years.

Olmsted was indicted on charges of operating an unlicensed money transmitting business, failure to report on exporting and importing monetary instruments and unlawful structure of transactions to evade reporting requirements.

Before his arrest March 9, Olmsted was getting Federal Express packages every day, filled with shrink-wrapped piles of dinar bills that had been smuggled out of Iraq and into Jordan, court documents say. One U.S. dollar is worth about $1,200 dinars.

Most of the $670,000 worth of dinar he's charged with importing came from a seller in Amman, Jordan. Olmsted allegedly told agents with the U.S. Immigration and Customs Enforcement Service that his business had grown tenfold since 2006.

Last April, Montana-based First Interstate Bank flagged $268,000 of Olmsted's money as having come through "suspicious activity," the court papers allege.

The papers also point out that Olmsted has spent time in prison for tax crimes, has been successfully sued in small claims court several times in Lawrence County during the past 12 years and owes nearly $140,000 in state and federal taxes.

Sellers of the Iraqi currency tell potential investors that the dinar's value will grow as Iraq's government and economy stabilize, and that those who buy the bills now are certain to see huge returns when they exchange dinars for dollars in the future.

What dinar dealers don't say, according to Jim David of South Dakota's Better Business Bureau, is that Iraqi currency cannot be exchanged for dollars in the U.S.

"It seems as if people don't realize that they'd have to take it to Iraq to get anything out of it," David said.

Even if the money were exchangeable, he said, someone who invests in foreign currency has to be careful to note the actual value of the currency before buying any from an online dealer.

"With a lot of these outfits, they've already doubled the price of what the dinars are actually worth," David said.

The Better Business Bureau received six complaints about Olmsted's online dealership, mostly from customers who said they'd bought dinars and never received them. The South Dakota Attorney General's Consumer Protection Division had received 18 complaints of a similar nature, according to spokeswoman Sara Rabern.

All of the complaints came from outside South Dakota, Rabern said. The Consumer Protection Office has not received any complaints of other dinar dealers in the state or of South Dakota residents who've purchased dinars from online dealers in other states.

"This is a pretty new thing for us," Rabern said.

Anyone who thinks they might have been a victim of the scam can call 773-4400.

Reach John Hult at 331-2301

Edited by davhina
inserted text of article for easy read
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Hmm,that makes me worry about cash in time-The BBB rep,David said we cannot cash in for US dollars in US,whats up with that,Is it true ,anyone know for sure about this,Adam,keep,anyone

Don't worry. When the RV happens and it becomes a tradable currency all the banks will be cashing it in because they will be taking their cut on the spread. I have bought my dinar from 2 of the leading banks here in the UK and you can be sure thye will be happy to make more money from the transaction.

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There are alot of intelligent people involved in this enterprise. If this information were true, at least some of these people would not be involved in it. I don't believe this article (just like I don't believe most main stream news) ;)

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It's true that you can't trade for US currency (Now) that's why we're all waiting for an RV, I don't think this person really researched anything before writing the article. Once it is able to be traded on Forex then banks will allow an exchange for US currency.

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There are alot of intelligent people involved in this enterprise. If this information were true, at least some of these people would not be involved in it. I don't believe this article (just like I don't believe most main stream news) ;)

Well......I think the point is that the guy was trading without a license and possible overcharging etc........as for them saying it can't be exchanged outside Iraq.......once it's tradable banks worldwide will want their share of the spread.....

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It looks like his problem stems from not delivering the goods to the people that paid for them. That will always cause you trouble. Mix it a misunderstood under researched investment and lawyers looking for exposure, this is what happens. The morale IMO is deliver what you sell and do your home work.

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Thanks Qman. This fellow mentioned is from the dealer

SCGS.US where many had trouble the last few months. No surprise

what has occurred and I am glad he was found out. I personally expect

more than one 'dealer' to find themselves in this predicament because of

their tactics and how they make sales.

It goes beyond demand...and everyone has been convinced a dealer was the

only way to purchase IQD. What they actually did in many cases was pay exorbitant

prices or premiums that were unwarranted in my opinion when comparing other

ways to purchase IQD. It is becoming much more evident that many, not all dealers

have gouged so many people on prices, and this is not just due to demand, it

is an unfortunate outcome usually more greed than anything else, and sometimes

it may cause a dealer to seek alternative methods to increase sales, which includes

potentially deriving their stock of IQD in an illegal manner.

This speculation has been pushed into the realm of a circus atmosphere by all the pumping

and rumors and constant claims originating most likely from some dealers themselves or at least

those who get referrals.

SCGS is probably the tip of this insane iceberg, it is all unfortunate, and I hope it all quiets down

soon. there have been a lot of promises made by dealers that in my opinion will not necessarily

be able to fulfill them, but so few ever question them. David Olmsted got caught, many others I suppose

have yet to be caught, but this does not mean all dealers are fraudulent of course. Most fill their orders

timely but still charge such a premium, it raises suspicion my many as well it should.

SCGS had always said the typical, "registered with the UST" type of claim...in reality it is a piece of

paper that must be renewed annually as far as I know, he may have let it lapse, only he knows. I know one

thing for sure though...SCGS was definitely not fulfilling many orders and they were the reason I decided not to

purchase my own from any dealer, as I had personal experience with them and caught them lying far too often and

told them if they charged my credit card I would report it as a fraudulent transaction as I simply told them to cancel

my order. Thank fully they never charged the card. We ended up getting all we have purchased via eBay without incident

and all tested excellent quality notes.

I am not bashing dealers...but I have stated before I also see some things regarding a few of the more popular ones are

getting really close to the line of fraudulent claims...one of those dealers advertise on this site and from what I understand

pay a 'referral' fee. I do not think that is prudent in this case as it means those who would get referrals *may* end up taking

actions that are fraudulent, such as the constant promotion of lies with all the rumors that seem to me to have one motive...

and that is to sell more paper.

Thanks again for the info. I certainly hope more dealers will not come to this kind of end...but I sadly suspect there will be

more as time goes on...and sales slow down. Just my thoughts.

As with anything...know who you are buying from...and do not just blindly assume the only safe way to purchase IQD is via

a dealer...that is exactly what they want one to think...it sure has worked.

All my best! :)

Jim

---

Edited by Jim1cor13
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What dinar dealers don't say, according to Jim David of South Dakota's Better Business Bureau, is that Iraqi currency cannot be exchanged for dollars in the U.S.

"It seems as if people don't realize that they'd have to take it to Iraq to get anything out of it," David said.

Even if the money were exchangeable, he said, someone who invests in foreign currency has to be careful to note the actual value of the currency before buying any from an online dealer.

"With a lot of these outfits, they've already doubled the price of what the dinars are actually worth," David said.

===============================================================================================================

Some of you people simply refuse to accept the truth. The day will come when reality

hits you right between the eyes...and in the pocket.

Then the only ones who will make any money is people like Lead and others who take

your usd in this, as it is called, a scam.

What makes you think adam or anyone else involved in this on these sites knows what

is really going to happen...they don't!

I would venture to say the BBB and laws have a better understanding.

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Some of you people simply refuse to accept the truth. The day will come when reality

hits you right between the eyes...and in the pocket.

Then the only ones who will make any money is people like Lead and others who take

your usd in this, as it is called, a scam.

What are you doing here if you're not invested in the IQD and you believe this is nothing but a scam? Sounds like you don't belong on Dinar Vets to me.

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I think he got in trouble because he was not licensed.

This....and the fact that he was not reporting his "income", nor apparently not paying any taxes on it either....

What dinar dealers don't say, according to Jim David of South Dakota's Better Business Bureau, is that Iraqi currency cannot be exchanged for dollars in the U.S.

"It seems as if people don't realize that they'd have to take it to Iraq to get anything out of it," David said.

Even if the money were exchangeable, he said, someone who invests in foreign currency has to be careful to note the actual value of the currency before buying any from an online dealer.

"With a lot of these outfits, they've already doubled the price of what the dinars are actually worth," David said.

===============================================================================================================

Some of you people simply refuse to accept the truth. The day will come when reality

hits you right between the eyes...and in the pocket.

Then the only ones who will make any money is people like Lead and others who take

your usd in this, as it is called, a scam.

What makes you think adam or anyone else involved in this on these sites knows what

is really going to happen...they don't!

I would venture to say the BBB and laws have a better understanding.

I would venture to say that you are trolling this site and would do better if you feel that way to use your right to ignore us...why spend so much time here when you feel this way? Or is it you just like bashing people here?

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What dinar dealers don't say, according to Jim David of South Dakota's Better Business Bureau, is that Iraqi currency cannot be exchanged for dollars in the U.S.

"It seems as if people don't realize that they'd have to take it to Iraq to get anything out of it," David said.

Even if the money were exchangeable, he said, someone who invests in foreign currency has to be careful to note the actual value of the currency before buying any from an online dealer.

"With a lot of these outfits, they've already doubled the price of what the dinars are actually worth," David said.

===============================================================================================================

Some of you people simply refuse to accept the truth. The day will come when reality

hits you right between the eyes...and in the pocket.

Then the only ones who will make any money is people like Lead and others who take

your usd in this, as it is called, a scam.

What makes you think adam or anyone else involved in this on these sites knows what

is really going to happen...they don't!

I would venture to say the BBB and laws have a better understanding.

You are a very smart person with a lot of common sense! See how easy a lie can be told? Why don't you put your head in your toilet and stand on your head.

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Hmm,that makes me worry about cash in time-The BBB rep,David said we cannot cash in for US dollars in US,whats up with that,Is it true ,anyone know for sure about this,Adam,keep,anyone

When the Dinar RV's then it will be tradeable into US dollors because right now it is not a tradrable currency. Hope that helps.biggrin.gif

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It's true that you can't trade for US currency (Now) that's why we're all waiting for an RV, I don't think this person really researched anything before writing the article. Once it is able to be traded on Forex then banks will allow an exchange for US currency.

I've already traded Iraqi Dinar for USD green back at BB&T 1 year ago, but it took them 24 hours to find the exchange rate they wanted to give me . This Guy is full of chit all the way wink.giflaugh.gifcool.gif

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What dinar dealers don't say, according to Jim David of South Dakota's Better Business Bureau, is that Iraqi currency cannot be exchanged for dollars in the U.S.

"It seems as if people don't realize that they'd have to take it to Iraq to get anything out of it," David said.

This part is what bugs me. He is talking out his ... well, not his mouth hole if you know what I mean. No where, and I mean NO WHERE, ever, in all the reading and research I have done on this and currency exchange in general, does it ever say anything this riduculous. Do I have to go to the States to turn my American funds back into Canadian funds? Or do I have to go back to Britain to turn left over pounds or euros from a trip there back into Canadian funds when I get home and find I can't get them changed here? If I were holding an Etruscan gold coin that was worth, on today's market, as a collectible, about three grand, would I have to find out where the coin was minted in the days of the Etruscans and take it there to get my value out of it? Well, okay that one is ridiculous, and doesn't apply at all. I iam just frustrated with people printing, and believing, such idiot comments. After a trip through Europe and Asia and the Orient you could come back with a bucket full or euros, or in earlier years francs, marks, shillings, rubles, yen, rial, dirham, florin, yuan, rupee, krona, baht, lira, rand ... yes the list goes on and on. By this idiot's logic you could not change any of them back into currency from your own country once you are home.

And something so simple, and so wrong, can be tossed off so easily in a printed statement and people %@$*&^# belive it !!!!!!! Just because someone wrote it down. And trying to get those people who read it and believe it to realize they have been given bad information is almost impossible ... why, he couldn't write it there if it wasn't true! Oh yeah! That's right. Everything you hear on TV or radio or see in a newspaper or on the computer ... yup, must be true if it is there. GRRRRRRR!!!!

I know it doesn't sound like such a big deal. It is a simple piece of bs that once said, sticks with people. And yes, it is a big deal, very big. It misinforms. I taints the entire lump of information about, in this case, the IQD. So after reading something like that no matter what else people are told, or we try to tell people by way of educating them, the damage is done. After all, you can't make any money on this investment without going to Iraq to cash in.

COMPLETE BS !!!!

Wow ... really needed to get that off my chest.

Thanks for the post and the great follow up comments. Thankfully jost members here are too bright to believe this crud.

:rolleyes:

smee2

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I think he got in trouble because he was not licensed.

This came to me via E mail a short while ago. Appears these folks are simply not doing business properly. No cause for concern for us honest people.

The guy who was indicted is the owner of SCGS who many have been having problems with receiving their dinars for months. He has NO license with the United States Treasury, and has continued to fail to deliver dinars or answer requests from many. So many are left without their dinar orders they paid for.

PLEASE BE AWARE that he has someone that has been coming on to Midnight Think Tank and the forums announcing a new site for SCGS in the last few days. That site is www.dinarlayaway.com. This new site is offering the ability to pay for dinars on reserve with a credit card, the ability to pay more money to extend your reserves,...etc etc.UNBELIEVABLE. Do NOT buy from this site as I doubt you will receive your dinars. Several people I know plan on reporting this site to the authorities today - we can only hope it is taken down soon before others lose out as well.

It is unfortunate that people like this give our investment a bad name and people that are misinformed like the reporter put out information that they have NOT researched as well.

If you are looking for a reputable company to purchase dinars from, make sure they are Licensed with the United States Treasury. Dinar Trade and Dinar Banker are both licensed with the UST - their sites have their license information posted on their site and also advise you how to check out a company that you are considering purchasing from, including a link to check out any currency dealer thru the UST.

I hope I have helped someone with this information not to make the mistake so many others did.

Have a Great Weekend....Go RV!!!!!!!

Here is the domain information for the new website being promoted:

Registrant:

Dave Olmsted

104 Galana St

Lead, South Dakota 57754

United States

I decided to let the link stay as the author of this comment is trying to warn us of a questionable dinar sales site. Woody

Edited by k98nights
Originally, Removed outside dinar site link
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Qman, Thanks for posting this! I just signed on awhile ago and a friend had emailed me this information. I was going to put a thread out here, but you saved me the time and effort, Thanks!

As bad as this may be, I was one of the people that lost some cash to SCGS. It was a small order (a few of the 250 dinar notes), but it's still a loss. I only placed the one order, and no, I did not receive the dinar, yes, sent emails to no avail.

I went with DT for my first order. What made SCGS an option was the smaller denominations they offered. You could buy smaller notes either in bundles or several notes individually (which is what I tried to do). With the date and rate of the Rv being uncertain in the future, a rumor had been floating around that the banks might squawk or hassel people if someone brought in a 25k dinar note (yes, this is a rumor). I just wanted a few lower denominations on hand. Anyway, I'm glad that apparently, the owner of SCGS is being held accountable. I regret there are other people who, in good faith, bought from them and got burned. What a mess.

Jim1cor, I also want to say, you bring up some excellent points in your post. I do believe the investment has caused and is causing a certain amount of unethical tendencies with dealers. For one thing, we all know the revaluation of the dinar is uncertain and who can say what is 'fair' price. Is 100k dinar worth $180 or $210 (and another $24 shipping), when the current exchange rate is 1170 for $1 US buck? Will this payment be trivial if the Rv is $1 USD per dinar sometime in the future? What about a penny, or if this doesn't occur for whatever reason (ie: war, civil unrest).

It's all speculative and ambiguous. We look it over, risk an amount we can afford, and see what happens. I should have checked out SCGS though, that was a mistake. Anyway, I wish all of you the best.

Thanks Qman, Jim1 and the rest of you.

Peace.

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