Advance Fee Scam: How It Works

An advance fee scam is a scheme where victims pay upfront costs for promised services or returns that are never delivered. This page examines how advance fee scams work in practice, using documented evidence from the Corinth Group of Switzerland investigation.

The Advance Fee Scam Playbook

Advance fee scams in the corporate finance sector follow a consistent playbook. A firm presents itself as a bridge between companies seeking capital and institutional investors. The target company signs a contract — often styled as a "Letter of Engagement" or term sheet — and pays substantial fees labelled as "cost contributions," "due diligence fees," or "retainer fees." After payment, the promised funding never arrives.

A Documented Case Study

The Corinth Group of Switzerland provides a detailed example. Entities in the network — operating from Stadtgartenweg 6, 7000 Chur — collected advance fees from clients across Europe, South Africa, and the United States. Contracts with Corinth entities included Article 26, a refund clause promising return of fees if transactions were not completed. According to multiple complainants, no refunds were paid despite no transactions being completed [Ripoff Report #1134964; Ripoff Report #1344693; Diebewertung.de].

The Contract Trap

Complainants describe contracts containing broad termination clauses that allow the firm to exit without liability. Clause 5.6 allows withdrawal "for whatever reason." Clause 6.1 covers events "beyond [the firm's] control." Clause 6.6 permits termination due to "material changes." These clauses, taken together, give the firm multiple exit routes while the client's advance fee is retained. Complainants report that the same excuses — market conditions, regulatory changes — were given to clients across different countries and years.

The Rebrand Cycle

A hallmark of advance fee scam operations is periodic rebranding to shed negative reviews. Registry records show the Corinth network has operated under at least five sequential identities: APAHML, Arcis Consortium, Curatio Capital, Corinth Group, and most recently Three Tuns. Each rebrand coincides with a period in which complaints about the previous name accumulated online. Three Tuns Investment Holdings Ltd (company 14242045) is the current UK entity [Companies House, UK].

Protecting Yourself

Before paying any advance fee: verify the entity holds current regulatory authorisation (FINMA, FCA, CySEC); check the directors' history on Companies House; search for complaints under current and previous entity names; and insist that any refund clause is unconditional and independently verifiable. If you have been affected by an advance fee scam, report it to the relevant authorities immediately.

Key Facts

• Corinth contracts include Article 26 refund clause — no complainant reports receiving a refund
• Contract escape clauses (5.6, 6.1, 6.6) allow firm to exit without liability
• 5 sequential corporate names used over 12+ years
• Fees collected across Europe, South Africa, and the United States
• Zero publicly verifiable completed investment transactions

Complaint Reports

People Involved

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