Quatloos - EXHIBIT - Omega Trust & Trading Ltd

7/29/2019 Quatloos - EXHIBIT - Omega Trust & Trading Ltd

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EXHIBIT: Omega Trust & Trading Ltd.

"The Lord's Warehouse is full" proclaimed retired electrician Clyde Hood of Mattoon, Illinois,after fleecing thousands (if not millions) of dollars from various people who invested in a bankdebenture scam known as "Omega Trust & Trading". Years after this alleged 275 dayprogram was supposed to be completed, it still has not paid a penny to investors, giving itperhaps the single worst monetary payout of any bank debenture scam (and there have beena lot of them). Even after Omega failed to meet numerous deadlines, even more fleecing wenton in the guise of two new "programs' called "Alpha" and "Destiny" -- neither of which havepaid a dime, either.

This page examines the Omega/Alpha/Destiny scams, and how they were perpetrated. Thispage is under construction as we are daily receiving more materials and information fromthose who have been scammed by these "programs" (And yes -- believe it or not -- some

morons stillbelieve these programs are real!). This scam is instructive because it is verysimilar to probably 99% of all the bank debenture scams -- the Omega "lenders" are just havebeen the slowest we have ever seen in coming to the realization that they have beenscammed.

The Omega Program(from our October 1999 Newsletter)

After five long years, victims of one of the longest-running bank debenturescams of the 1990s have finally realized that they have been scammed. Yes,we're talking about Omega and Destiny, two programs in which funds werepooled so that investors (called "lenders") could invest in various bankdebenture programs. The problem is, as we have repeatedly chronicled, is thatbank debenture programs do not exist.

The bank debenture scam is one of the best-known to law enforcement,because it became so prolific in the mid-1990s. The storyline is that there is a

"secret" banking system, in which the "prime banks" and the ultra-wealthymake trades that yield 70% per week and upwards.According to the storyline,so called "little people" (small investors) don't have the money to enter intothese transactions, so they must "pool" their funds together and let someonewho does have a magical "in" to this system invest for them.

This is, of course, a total scam. The bank debenture scam has resulted inliterally hundreds of prosecutions for securities fraud, and none of thedefendants in those securities fraud cases could even introduce a shred ofevidence that this "secret banking system" exists. Virtually all law enforcementagencies in all countries put out warnings that about bank debenture scams(also called HYIP and MTN scams, among other names), and it was thesubject of discussion at the Financial Fraud Convention held in London thispast spring.

Over the years, we have seen literally hundreds of these scams, by way of

victims who have contacted us for information. No such program has yet provedto be valid, and as noted the SEC has successfully prosecuted hundreds ofpeople for pitching this scam. Moreover, we know many of the officers of theworld's real "Top Banks" and we can assure you that they laugh with the rest ofus at the mere mention of the "secret banking system" - correctly pointing outthat the mathematics are such that if such a system even existed, that onesuch bank would within a couple of weeks own all the currency in the world(which of course they do not).

Information regarding Bank Debenture / HYIP scams can be found athttp://www.quatloos.com/ stkscams/ hyips.htm Listed at the bottom of thatpage are some examples of people who have or are being prosecuted forrunning a bank debenture scam. If you want to read some more, go to theSEC's website at http://www.sec.gov under the non-Edgar database and type in"prime bank" - you will see everything you need to know.

So what does this have to do with Omega? Because Omega is premised on the

fact that its promoters could "pool" the funds of Omega "lenders" and enter thissecret banking system (which doesn't exist).

When we first starting looking at Omega, we thought that it was just anotherPonzi scheme, where successive layers of investors are paid out as aninducement to others. Turns out that Omega was not a Ponzi scheme at all - tothe contrary, it was just 100% pure fraud. Nobody was paid out anything,except that apparently a dribble of money is released every now and then as

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"To the multitudes ofinvestors who sent himmoney, Clyde Hood'spromises of low-risk, high-return investmensts musthave sounded like theanswer to their dreams. NowHood is headed for prison,and the money is mostlygone."~ Shane Trisch, FalseProfit, Chicago Magazine

Shane Tritsch's article"False Profit" recites the

bizarre story of the retiredelectrician who held himselfout to be one of the world'stop financeers in the processof fleecing tens of millionsfrom tens of thousands. A"must read" for thoseinterested in the Omega

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"proof" that moneys exist (they don't).

There is no "secret fund" of Omega moneys waiting to pay out disappointedOmegans (as they call themselves). Instead, their moneys were scammed fromthem, not recently but up to five years ago when they first bought into thescheme. The Omegans are just now coming to the reality that their entireprospect of a payout was based on the bank debenture programs which havebeen proven time-after-time-after-time to be a total scam and without anyvalidity in the real banking world (secret or not).

Although the investors were sold "units" which represented "loans", it is clearthat these units were a security as defined by the Securities Act of 1933, andthat the sale of these units without registration or prospectus amounted to

securities fraud. From what we can deduce, some of the "lenders" were alsotold that they would not have to report what they obtained from the alleged big-payout on their income taxes, or else it would be paid in an offshore account -conduct which would clearly be tax evasion.

The amazing thing is that years after being scammed, the Omega investorscontinue to believe. This is probably because the Omega promoters chose tomarket to a group of people often preyed upon by scam artists, meaning theelderly and the poor - relatively unsophisticated people who lack both themeans or knowledge to adequately investigate the fact that they have beenscammed or to report it to law enforcement.

Virtually every month the Omega scam announces a new date for the allegedbig payout, and exhorts its victims to "just hang in there" for a little while longer.Fortunately, some people have waited just a little too long, and we soon expectto see the Omega program as a source of interest in the major newspapers -

and not for paying out.There are a few Omegans still exhorting the other Omegans to "just hang inthere" and not take their complaints to law enforcement as they should.Whether these people are linked with the promoters, or have just beenhoodwinked to an enormous extent, are not known. What is known is thatattempting to persuade people not to report the existence of a crime canamount to the separate crime of obstructing justice, so it is possible that evensome of these otherwise innocent investors might be called on the carpet.

Unbelievably, there are still some people who are selling units in Omega;doubtless these folks also would have tried to sell berths on the Titantic after ithit the iceberg. Another scam apparently involves the sale of "refund units" inOmega - i.e., you throw good money after bad in an attempt to get your firstmoneys paid back. Unfortunately, law enforcement is watching this like a hawk,and there would be no way for the Omega promoters to make a substantialpayout even if they had the money to (which they don't).

What if you have bought in to Omega, what do you do? The first thing to do isthat you must come to the realization that you have been scammed, and thatyou are not going to get the big payout promised to you. The second thing youneed to do is to realize that if you have any chance of getting your money back,it will be by way of a "Victim Restitution Order" against whoever sold you yourinterests. Thus, the third thing you need to do is contact law enforcementimmediately, preferably your local office of the Federal Bureau of Investigationsand State Attorney General. Fourth, you ought to talk to your attorney oraccountant about sending your Omega promoter a 1099 for the amount you lost- making them liable for taxes and possibly giving you a deduction for theamount you lost.

According to e-mail we have received, a support group for those persons whohave been taken by the Omega scam can be found at http://www.insidetheweb.com/ mbs.cgi/ mb824300

To contact your nearest law enforcement agency, see http://www.quatloos.com/lawenfor/ lawenfor.htm

Omega Rolls Into 2000(from our December 2000 Newsletter)

Speaking of bank debenture scams, after our last article on the InfamousOmega Trust & Trading, a bank-debenture scam run out of the Mattoon, Illinois,area, we received numerous telephone calls and e-mails from people insistingthat this program -- which is more than a half-decade "late" in funding -- wouldcertainly fund by Thanksgiving.

For the hard core believers, we offered a bet: If Omega funded by Thanksgiving,1999, we would DOUBLE their money, but if Omega didn't fund they shouldsend us $100. We are making similar offers to some for Christmas and NewYears, but as we haven't seen the $100 they owe us for Omega not funding by

Thanksgiving, we're doubt they will send us their $100 for Christmas or NewYears, either.

Omega operated on the premise that you would pay $100 to Omega, and thenit would pay out at least 50:1 but more likely some astronomic figure like $1.5million per $100. This is typical of bank debenture scams, including many bankdebenture scams where the crooks will enjoy the New Year's fireworks fromtheir TV set in the penitentiary.

saga!

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and Paul Renner

Forum

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What makes Omega unique is that Omega was one of the first bank debenturescams aimed at devout Christian believers -- they kind of people who take blindfaith seriously. And though the evidence is conclusive that Omega was justanother scam, these people still believe that after more than five years after itmissed its first payment deadline, that Omega will still pay!

Still, even after the "Final" deadline of December 31, 1999, has passed, the"lenders" continue to believe that there is some worldwide cartel of Europeanbankers, the Federal Reserve, the Illuminati, Freemasons, the Moose Lodge,Spicegirls and New Orleans Saints, who are "conspiring" to hold up the Omegafunds. Shows you just exactly how anti-government paranoia can be utilized byscam artists for monetary gain -- a disturbing trend among crooks, including the

promoters of Omega.The truth is that the Omega funds are long gone. We know of several privateattorneys and private investigators who have reviewed Omega, and found thatabsolutely no funds exists to pay the "lenders" as they are known. Criminalcomplaints have been filed, and we expect to see a rash of civil lawsuits filedshortly after the New Year, to attempt to recover whatever is left in the accountsof the crooks who promoted this program. Ditto for Omega's spin-off scams:

Alpha and Destiny -- absolutely no money is in those programs, either.

But for those really hard-core Omega believers, we offer a $10,000 challenge:Quatloos will pay $10,000 to the first person who can prove ANY of the followingto the satisfaction of a United States District Judge:

The existence of a "bank debenture roll program" with an average yield of

more than 50% per annum.That any of the Omega money was even invested in a legitimate "bankdebenture trading program".

That any of the Omega money was legally invested for the benefits of"lenders".

That the Omega moneys available for payment to "lenders" exceed whatthe "lenders" originally paid in, i.e., that "lenders" as a group will receivemore back from Omega than what they put into it.

That Omega has ever been audited, or run as a legitimate financialprogram.

That the Omega program is anything other than a criminal scheme todefraud the "lenders".

After our last article, we received many e-mail messages from hardcore Omegabelievers that the promoters would sue us for libel & slander. We told them to"bring it on" - and we repeat this challenge today. They haven't sued us, norhave they even threatened to sue us, and in fact the last place these crooks willwant to be is in a courtroom -- although hopefully they will be there soonenough courtesy of the State of Illinois, the SEC, the FBI, or other lawenforcement agencies that are investigating this blatantly fraudulent scheme.

Omega Fantasy Continues(from our February 2000 Newsletter)

For the last several months, we've been following that criminal scheme knownas Omega Trust & Trading, a bank debenture program which is more than ahalf-decade late in paying the huge returns it promised.

We're ready to go on record as saying that the people who still believe in

Omega after all this time, and who still believe that it will pay, are some of thestupidest people on the face of the Earth. You would have to be a real mentalmidget to believe that this scam might actually pay out something, but some ofthese people go on day after day, believing that there is some worldwideconspiracy which is holding up their payments, but that somehow the crookswho perpetrated this scam will somehow beat the conspiracy and pay theseidiots their millions.

To get an idea of the New Age "Goo" that people believe in that makes themsusceptible to scams such as this, you only need to visit one of the severalinternet bulletin boards for the still-believers. One of these is found athttp://www.insidetheweb.com/ mbs.cgi/ mb632512and several people have sentus (Thank you!) copies of the mentally unbalanced junk that these peopleengage in with the hope that Omega will pay out, such as occasionalmeditation sessions, as well as exchanging rumors of the "global conspiracy"that they believe is holding up alleged Trillions of dollars that have accumulatedin Omega, which is nothing more than a bank debenture fraud of a type we havechronicled on too many occasions.

Want to know how gullible the "Omegans" were? Many of them sent in their"loans" in cash, wrapped in aluminum foil, and sent by an express courierservice such as Federal Express or United Parcel Service, i.e., leaving nomoney trail which could be followed. They were told, and believed, that theirmoney would be invested in European banks, to be traded as part of "secret"ro rams that would ield a hu e return. But the return to-date has been zero

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which of course is the average and typical return of these bank debentureprograms - in fact, no bank debenture program has EVER had a higher payoutthan zero, and we have offered a $10,000 challenge to anybody who can provethe existence of even a single bank debenture trading program which wassuccessfully completed from start to finish with a profit exceeding more than50% per year.

This zero return comes more than seven years after a guy who went by thename of Clyde Hood of Illinois, started selling "units" which of course were notregistered with anybody, anywhere, so that the Omega "lenders" could "pool"their funds together to invest in the secret European trading programs. Later hewas joined in the program not by any international financeers, but by a coupleof promoters whose financial experience was mostly in promoting multi-levelmarketing deals.

Now, of course, Clyde won't return the "lenders" money, and won't even returntheir calls! Yet, still the Omegans believe. As P.T. Barnum said "There's asucker born every minute", and they all seem to have collected in Omega. Wehave no doubt that a year from now - or even 10 years from now -- the idiotOmegans will still be sitting around talking about all those millions (the "gift"from God, they call it) they will soon be receiving. As Forest Gump said:"Stupid is as stupid does." The promoters of Omega chose well in their victims,being either fundamental Christians who "keep the faith" no matter what, or New

Agers who are so stupid that they will believe in anything ("Omega today,pyramid power tomorrow!).

So why hasn't the SEC taken action against this scam yet? The reason, as theSEC publicly announced a couple of weeks ago, is that the SEC is simplyswamped by investigations and prosecutions of bank debenture scams like

Omega. The great wealth created in the legitimate stock market has madepeople both hungry and greedy to "beat the Joneses" with the un-credibleperformances of 800% per week, or "turn $100 in millions" like Omegapromised. But of course the fact that the SEC is behind in busting these scamsdoesn't mean that programs like Omega are real, or will pay.

The sad thing is that a few of these Omegans have traded what little moneythey had for "units" and now in a few cases desperately need the money formedical care, and even such basic things as housing, etc. These people areliterally going from day to day - unconscionably lead on by the people whoevery week tell them that their long-sought packs will be delivered "next week" -and probably foregoing other, more real-world planning which could actually helpthem out.

In the end, more sad than funny.

From our April 2000 Newsletter

On a lighter note, perhaps the longest-running bank debenture program whichhas never paid a dime is still "going", at least in the minds (such as they are) ofthe suckers who bought in.

We're talking of course of Omega Trust & Trading, a bank debenture programwhich stands out solely because the investors into that program are too dumbto figure out that they have been scammed. Even years after the original 275-day cycle for the non-existent "trades" expired, the Omega "lenders" as theycall themselves, still believe that their initial $100 per unit investment will yieldthem millions per unit.

But to get right to the humor, we have received numerous e-mails from lenderswhich emphatically state that Omega is "real" and that it will "definitely pay out"- as soon as the last "roadblock" is removed. So what is this roadblock? First,strap yourself in for violent laughter.

Many of the lenders now are convinced that the fictitious Omega pay day isbeing held up by a bunch of "shape shifting lizards" who are in charge of theU.S. government and the world banks! Honestly! They have derived this "theory"from the writing of David Icke, who widely espouses the "shape shifters" theoryon his bizarre website http://www.davidicke.com(we have received noindications, however, that even David Ickes believes that the Omega program isheld up by the lizard shape-shifters).

To use the term "wacko" here would be a gross understatement, but coming asit does from these Omega simpletons who have long been convinced that theRockefeller family has colluded with the "big banks" to embezzle the Omegaquadrillions, this is not surprising. Some of the theories the Omegans havecome up with over the years have been gut-bustingly funny, such as thatOmega has grown to where Bill Clinton and Alan Greenspan are regularlybriefed about it (doubtless, neither know anything about this scam unlesssomeone has mentioned it to them as a joke), and that Congress has passed

legislation to help the "lenders" get their cash.

Amazing that people could be so stupid to believe in this program, but theOmega lenders are at the bottom of the intellectual barrel. Even after theoriginal Omega program didn't pay off as it should, the Omega lenders thenwere persuaded to buy into yet an identical program (which, Surprise! Surprise!)didn't pay off either, called Destiny.

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But that wasn't the end of it either. You'd think that no rational person would buythe units of a program that had failed, but it hasn't kept one of the programpromoters from selling so-called "refund units" although to buy these units youhave to send cash to him wrapped in aluminum foil by Fed-Ex or UPS. Ofcourse, the promoter wasn't actually giving refunds, but such technicalities havenever deterred Omegans from continuing to believe.

Can the Omega lenders even spell the word "suckers"? I doubt it. In the world ofscams, these people may go down forever as the dumbest of the dumb,distinguished from other scam victims as the people who couldn't just let goand figure out that they have been had.

We have created a new Exhibit to our Cyber-Museum of Scams and Frauds,

where you can hear actual audiotapes of one of the Omega promoters tellinghis flock that their countless millions are right around the corner - this was backin 1995, of course. Our new Exhibit is at http://www.quatloos.com/ cm-omega/cm-omega.htmWell worth a visit, and our museum is like the rest of our site:100% free.

Amazingly, a few Omega victims groups went in and set up support forums tohelp each other figure out the Omega scam, and to lend mutual assistance toone another. However, persons probably associated with the scam artists madea variety of false statements about these forums, and had them shut down (apopularmodus operandiof cyber-scam-artists). Thus, we have also created anew Moderated Omega Victims Support Forum of our own athttp://www.quatloos.com/ cm-omega/ fo-omega.htm

And as a final note about Omega, some months ago we issued a $10,000challenge to anybody who could prove that Omega is a legitimate financial

program. To date, nobody has even triedfor the $10,000 which gives you anidea of the sheer nothingness upon which these people are stupidly basing theirbizarre hopes.

From our July 2000 Newsletter

Omega Scam Gets Dumber AND DUMBEST

Since we've been writing this newsletter, we been laughing about a bankdebenture scam that has been going on since 1993 - without paying a dime -and which has some of the dumbestfollowers of any scam in history.

That's right, we're talking about Omega Trust & Trading Ltd., a "prime bank"scam which was run out of the Mattoon, Illinois, area by somebody using thename "Clyde Hood". This program promised people that if they put up a mere$100 that they would get back $5,000 in 270 days.

But as you can imagine it somehow didn't pay off.Still, some of the original investors still believe that this program will pay! Theyhave in their (midget) minds that untold trillions have been accumulated by thisprogram, but that the money is behind held by unnamed "European bankers",and of course the group which is mentioned in just about every nut conspiracytheory: the Rockefeller family.

To give you an idea how stupid these people are, we are going to reprint belowan actual letter received from one of the Omegans which describes a non-existent court action which they believe is going on in federal court somewhere:

"This is not I repeat not a rumor this is for real.

"We have a emergency call to prayer for everyone. DavidRockefeller of Chase Manhattan Bank and George Bush Seniorare blocking the delivery of this and other programs. They are

defying a Federal Judge order that is demanding this be deliveredimmediately. There is a Supreme Court Justice that has been inthe courtroom the last 6 days advising the lady Federal Judge.This is happening in Manhattan, New York.

"We are told that if this is not funded by 9:00 AM Thursday thatthey all are going to jail, the bankers, Federal Express, theattorneys and anyone else that is involved blocking this programfrom delivery. The federal judge stated that she will make thispublic on national television if this is not delivered.

"The international bankers around the world are hopping mad anddemanding this be finished. This is blocking many other majortransaction and we are about ready to have a world wide financialcrisis if this does not deliver.

"Please send this to everyone you know in the program and

others to lift this up in prayer and bind David Rockefeller andGeorge Bush and allow this program to finish.

"This is what I know at this time, lets all join in and petition ourHeavenly Father to intervene and release this program now.

"Sincerely Yours

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[name withheld to protect the identity of somebody who isincredibly stupid]

You have no wonder how these people are so stupid that they believe thisnonsense, but the fact is that they are. These are the same people who acouple of months ago bought into the theory that the U.S. government is beingrun by a bunch of "shape-shifting lizards" from another planet.

From what we have seen, they are also being led on by several scam artists -particularly one from the New England area who has a criminal backgroundwhom we intend to name shortly -- which are trying to push other bogusprograms on them, such as other HYIP programs, and also some networkmarketing programs. We have helped some of the Omegans refer these

leeches (that is the only accurate description) to the appropriate lawenforcement authorities, and we hope to report on the success of those criminalreferrals in our next edition.

Nonetheless, blaming the government, "European bankers", or whoever is acommon excuse for the scam artists who sell bank debentures and HYIPprograms (which don't exist). When these programs don't pay out as promised,they blame everybody except themselves, and concoct wild conspiracy theoriesabout why the money didn't come back, although the truth in every case is thatthey simply embezzled the money.

And the weird thing is that some people believe them, and continue to believethem even when faced with the truth. What happens is that when people getinto these deals, they tell their family and friends what great deals they are (andoften get their other family members and friends into these deals, too). Then,when the thing goes bust, instead of having to admit they were scammed, it is

easier for these people to believe (and in many cases, concoct) these wildstories, so as to save face with their loved ones.

But that doesn't make these programs any more real. Plus, what happens isthat this lets the scam artists get away, to go hurt other people in the next deal.Better that people should own up to the fact that they have been scammed, andat least try to give law enforcement a hand in catching the crooks, or tellingothers their story so that at least they don't get scammed, too.

Finally! Clyde Hood & 18 Others Indicted

U.S. Attorney's Office has several press releases, etc., as well as the copy ofthe actual indictment in Adobe .pdf format at http://www.usdoj.gov/ usao/ ilc/hood/ notification.html

The Mattoon, Illinois, Journal Gazette & Times-Courierhas done anexcellent job reporting on the Omega scam and prosecution of Clyde and his

Hoods. See http://www.jg-tc.com/ NEWS/ omega.htmlPost-Indictment Rumors

We've created a new page JUST for the wackiest post-Indictment rumors. ClickHere to get a good belly-laugh!

The Clyde Hood Audio Tapes

As a special treat to visitors of this Omega Scam Gallery, we bring you realaudiotapes of messages given to Omegans by the main promoter of Omega, aperson who holds himself out as being "Clyde Hood" of Mattoon, Illinois.

Clyde Hood on March 28, 1995Clyde Hood on April 1, 1995Clyde Hood on April 3, 1995Clyde Hood on April 5, 1995

Clyde Hood on April 10, 1995Clyde Hood on April 12, 1995Clyde Hood on April 13, 1995Clyde Hood on April 15, 1995

The Clyde Hood Letter of October 11, 1999

The following is a letter which Clyde Hood purportedly sent out to the Omega"lenders" advising them of the termination of the program. As far as we candetermine, these letters were only sent to a very few lenders, although theintention is apparently to give the impression that all lenders were beingrefunded.

October 11 1999

Dear Lender,

Unfortunately. I must advise you that it has become necessary toterminate the private party loan agreements with all lenders and returnto each recorded lender the full outstanding amount which is recordedthat he or she loaned.

Enclosed with this letter for delivery to you is a check made payable toyou for the amount our records reflect to be the full outstanding amountwhich you loaned. I regrettably report these circumstances to you, and

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I provide you with the following summary explanation as to thecircumstances and reasons for this action.

As of late 1997/ early 1993, the United States Government and theState of Illinois had initiated and been conducting over at least theprevious one year period of time an investigation concerning privateparty loan agreements. During that period of time, they had apparentlyissued a number of subpoenas directed to a number of personscommanding that these individuals appear and produce variousdocuments at proceedings which were being conducted to investigatethe private party loan agreements.

Becoming aware of this on-going investigation, I asked an attorney to

contact the authorities on my personal behalf and attempt tocommunicate and discuss with them the subject matter,circumstances, and concerns which the authorities apparently had inhaving initiated the investigation. In response to his contacting them,he was advised that the investigation was not in an "advanced stage",and he would simply have to await a response through delivery ofcorrespondence from the authorities to him concerning the matter.

Although he was advised that such correspondence was forthcoming,no correspondence was ever received.

I further then learned that the private party loan agreements wereapparently the subject of investigations by multiple federal and stategovernment entities, and it was reported to me that variousadministrative or judicial proceedings were being initiated or conductedin various federal and state jurisdictions throughout the country

In conducting its investigation, the Federal Bureau of Investigationseized a computer, computer software, various files and other personalproperty, including certain checks, money orders and cash related tolenders or possible lenders and the private party loan agreements. Thefederal government then advised that it was forfeiting, confiscating andconverting the computer, computer equipment and currency it seized toits own property and use.

Following these circumstances the authorities then advised mypersonal attorney that their investigations would simply have to runtheir course without them engaging in correspondence or discussion ofthe matter with him.

Further complicating the matter at that time, it was reported thatapparently certain individuals had obtained a copy of a private partyloan agreement and were circulating and obtaining loan agreements

Page I of 3

With others under false representations and pretenses and "pocketing"the money received by them for their own use.

Based upon the foregoing circumstances, I attempted to terminate theprivate party loan agreements during the early part of 1998. However, itwas reported to me that the majority of the lenders did not want theagreements terminated, with many of the lenders reporting that theywere upset with the actions taken and difficulties caused by the lawenforcement investigations, such that they were willing to forgo returnon their loans with instructions that their loans be applied and utilizedtowards the efforts and expenses of dealing with the law enforcementactions and investigations.

Since late 1997/early 1998 and continuing to the present time, I provideyou with the following summary report of problems and difficulties with

which I have had to deal.

Law enforcement agencies have subpoenaed various bank records. Aninvestigation was directed towards me, among others, in the State ofHawaii. The government authorities have been conducting grand juryproceedings in the State of Illinois which has resulted in a number ofmy family, friends and acquaintances being subpoenaed to testify,along with apparent investigation of their own business activities.

During March of this year, I was advised that a search warrant wasserved on a bank in Illinois and various checks and perhaps documentswere seized by the law enforcement officials from bank. I have neverreceived any accounting or report from the law enforcement agenciesas to what may have been seized, or what has become of the sizedmaterials, and the bank has advised me that it cannot discuss thematter with me in that it was informed by the law enforcement officials

that it could not discuss the matter with me.

I have recently received materials directed to me concerning aninvestigation and proceedings being conducted in the State ofMissouri. Although I believe the investigation and proceedings to bemisplaced, the State of Missouri advises me that it is my burden, nottheirs, to prove that they are misplaced, and if I do not an "Order" willbe entered against me. It has additionally been reported to me that

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various proceedings may be initiated in the State of Ohio.

It also appears that there may be a rather extended situation ofpersons circulating and transacting private party loan agreementsunder representations that those private party loan agreements areaffiliated or connected with me, when they are not. Additionally, it alsoappears that a large amount of misrepresentations and misinformationare being circulated, including misrepresentations and misinformationon the internet, which would be too lengthy to attempt to address.

Based upon the foregoing, and what I can only anticipate and foreseeas a continuation and escalation of what has transpired in the past,with accompanying fears that your loan proceeds may be seized or

otherwise affected by law enforcement officials. I believe I am left withno alternative but to immediately terminate the private party loanagreements and return to you the full recorded outstanding amountwhich you loaned in order to as*ure that you will at least have receivedits return without intervention, problems or difficulties such as has beenencountered in the past and/or potential future seizure, forfeiture orother loss.

I would hope that you will understand and be appreciative of theenormity of the problems and difficulties which have been encounteredand are anticipated or foreseen to be encountered in the future

Page 2 of 3

which has resulted in the action which I am taking. To attempt toprovide you with a more detailed report would be of a length which isbeyond my capacity

I wish to emphasize to you that I have terminated the private party loanagreement, returned your money to you with a termination of the effortsand purposes for which the loan was provided. We will not beproceeding any further. As a result of what has transpired, I feel I haveno alternative, and not knowing what may be seized or forfeited by lawenforcement officials in the future, I am fearful that unless I take thisaction you might not even receive return of the amount which youloaned

I would further hope you will be understanding and appreciative that dueto the enormity of the situation, I am not in a position to provide youwith a more extensive report or have the time to further completelydiscuss this matter personally with each of you. Likewise, it would beoverwhelming and impossible to receive or discuss this matter with youby telephone, whereby this communication must act as my final report

to you with regard to this matter.

I further wish to emphasize to you that the enclosed check is in theamount which the records at my disposal indicate is outstanding withregard to the amount which you loaned. As I mentioned above, itappears that there are certain persons circulating private party loanagreements under misrepresentations that they are affiliated orconnected with me, with these individuals then "pocketing" the moneyreceived by them.

If you do not believe that the enclosed check accurately returns to youthe outstanding amount of what you loaned, it will be necessary for youto communicate with me by mail, and in so doing it will be necessaryfor you to deliver to me a reproduced copy of your private party loanagreement, plus a copy of both sides of your cancelled check or otherdocumentation confirming the amount which you loaned. Suchcorrespondence and documentation should be forwarded to thefollowing address:

Clyde D. HoodP 0 Box 767

Mattoon, IL 61933

I would again like to express to you my regret with regard to theunfortunate circumstances which we have encountered and thenecessity of this action. Despite what we have encountered, I havebeen able to return to you the amount which you loaned without itbeing seized, forfeited, intercepted or otherwise lost, but we have notachieved and will not be further pursuing the purpose of the loan,whereby there is not and will not be any profit on the loan.

Sincerely,

Clyde D. HoodPage 3 of 3

The Private Party Loan Agreement

This is a copy of the document which was used to defraud the Omega lenders.

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PRIVATE PARTY LOAN AGREEMENT

This Private Party Loan Agreement is to be initiated between___________ and an overseas Trust & Foundation firm in considerationof this sum of ________ to be used for the operational purposes of theproject in the interest of the overseas Trust & Foundation firm.

It is understood that these funds will be transferred to the overseasTrust & Foundation firm's project, whereby the loan plus profit will berepaid to the lender in an amount not less than fifty (50) times theamount loaned. Expected time of repayment is calculated to be on oraround two hundred and seventy-five (275) days from the date of

lending. Both parties understand that financial matters involve risk andno warranties or guarantees are expressed for an exact date of 275days. It should be understood, this negotiable agreement is for areasonable time frame thereof.

Whenever funds are disbursed, funds will be in the form as designatedby the lender. The Lender will as-ume responsibility for any and all feesand/or taxes on these funds.

It is understood by the lender that he/she has no access or privy tospecific details of operations and no hand in the management ofproposed operations.

This is a non-recourse agreement between private parties. Receiptand/or signing of this document by the recipient constitutesacceptance of the terms of this agreement. The first Private Party Loan

Agreement submitted by each individual or entity is subject to

acceptance by the Agent or the overseas Trust & Foundation firm,without recourse.

The overseas Trust & Foundation firm, cannot cancel this loanagreement, once accepted, only the lender has the right to withdrawfrom this agreement after the 275 days. A full refund will be made uponreceipt of a written request at the Wauconda, IL address.

Receiver states that he/she does have promise of financial asets in anamount sufficient to sustain obligatory indebtedness.

An acknowledgment will be mailed to you upon receipt of your loan atour offices. Unauthorized changes to this document Will void the entireagreement.

PLEASE MAKE MONEY ORDER OR CASHIER'S CHECK PAYABLETO. & SHIP TO:

[Address Given]

Lender: _________________

Or Entity: _______________________________(Please Type or Print Name)

Signature:_______________________________

Address:_____________________________________

City: __________________ State: _____ Zip: _________

Phone:__________________

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