POF.... The Good The Bad The Ugly

Proof of Funds / Credit Enhancement Services
 
Domestic Bank Account Service:
US Domestic deposit account with top domestic banks. This is a sub account set up under a master account funded with cash. We have at least two investors who set up their sub accounts either solely: one sub account to one master account, or stacking: multiple sub accounts to one master account. When there are multiples, or "stacking", the investor can charge less for his service than the investor who blocks the funds in the master for only one sub account.
 
Sub accounts are connected to the master account with notation on screen instructing the banker/teller of the amount the account is funded with. The sub account literally only has the minimal amount required to open an account. The instructions in the account then require(?) that the bank representative call the private wealth manager to further verify the account balance. (If the teller is busy, the account will not be transferred, but will be verified by that under paid, disinterested teller).  Electronically the banker looking through the account screen would verify the account balance by seeing it is tied to a master account with funds blocked for the signatory of the sub account.(It is just as likely that the bank teller will see the client’s actual, empty account and verify that dollar amount.  In the event that the (under paid) teller notices that there are “blocked” funds in the master account, that information may be offered to the institution verifying the account.  BLOCKED FUNDS ARE NOT FUNDS IN THE CLIENT’S (EMPTY) ACCOUNT.  They may very well be proceeds from a loan, and totally worthless as a Proof of Funds.)    
 
The private wealth manager will never mention to third parties that the account is a sub account.(What happens if he’s out to lunch or sick and someone else takes the call?)  For these reasons above the account can be verified by going into any branch or calling the bank 800 number, but the bank representative may be required to read through the notation on the account screen and/or call the private wealth banker to be able to know what the balance is, (This is where most verifications fail.  Many bank tellers do not read through the notation, but simply verify the client’s actual, EMPTY account.) and therefore calling the banker of record is more efficient.
(This process is also called ‘Bank Fraud”.  As stated in the first paragraph, the customer’s account has virtually nothing in it.  Therefore verifying any other “Master Account” – not the customer’s -  is fraudulent.)
 
This service can not send SWIFT MT 760 verifications, blocks, or guarantees, but may be able to send other accommodating and like actions that verifiably block/reserve the account.** Service is for 60 days with renewals allowed. Minimum $1M accounts.
The investor chooses the escrow service provider and reserves the right to change their preference of escrow service providers at their discretion at any time.

It is highly unlikely that an inquiring party will simply accept the information offered with this type of POF without asking any questions.  It is my experience that the inquiring party will ask if the account is in the name of, and under the sole control of the client.  NO banker can or will respond affirmatively to those questions.  The master account is NOT in the name of the client and the client has NO control over the account.  With this “piggy backed”  type of POF, the bank has no idea that it is participating in a fraudulent verification.  When questioned, the teller will verify the account truthfully, explaining the Master Account, sub account, and empty client account.