ED Magedson – Founder
Blue Coast Banc633 West 5th Street Los Angeles, California USA
Blue Coast Banc a.k.a. Blue Coast Securities: Elaborate, but dumb fee scam - Los Angeles California
This report is about Blue Coast Banc, a.k.a. Blue Coast Securities.
The company is led by a man that goes under many names. Some of them include Steve Muehler, Steven J. Muehler, Steve Mueller, Steven Mueller and Steven Meuhler. He also uses the name Wyatt Miller to sign papers.
He has previously led other scams, such as Del Ray Investments, LA Investments Bank, LAIC Venture Capital and Alta Vista Companies, just to name a few. Google some of these, and you'll dig up new company names all night.
Steve has previously been arrested for aggravated battery on his girlfriend, in addition to being reported to the authorities for several cases of financial fraud. To avoid persecution, Steve has moved across state lines from Minnesota to Florida, before finally settling in Los Angeles, California in 2009/2010. Steve has also received several Cease And Desist Letters.
To see the arrest mugshot of Steven Muehler, click here: http://florida.arrests.org/Arrests/Steven_Muehler_8881026/
To see one of the numerous Cease and Desist letters Steven Muehler have received, click here: http://www.scam.com/blog_attachment.php?s=c0cc6edfcd95cb49352b698b7a769bf2&attachmentid=68&d=1245188602
Steve used to have his own homepage here: http://www.stevemuehler.com/
(the site is/was hosted on a free Wix.com account)
Steve lives and operates out of Los Angeles, California, but now operates globally. European companies beware!
Steve apparently used to have a real job within the financal sector. At this job, Steve got access to various forms and contracts that he now uses in his current scam; one of them is a "Preferred Private Equity Capital Investment Agreement", a 3 page document full of fancy words - few of which Steve probably truly understands.
So what's the scam? Steve, or one of his accomplices, will contact you about wanting to invest in your company - or help you raise money. The sums are always the same: Blue Coast Banc/Securities will raise 5 million USD in return for a 5-10% stake in the company. Some times Blue Coast Banc/Securities also wants a 1.25% dividend on the quarterly returns.
Here are some excerpts from our proposed contract:
"Based on the completion of Blue Coast Securities Corporation's “initial” due diligence and review of documentation submitted, we are please to set forth the following terms and conditions approved for Equity Funding by a pool of investors associated with Blue Coast Securities Corporation. Numbers based on a Capital Need of $5,000,000 USD. Equity Capital Investment for a 5,000 Shares of Preferred Stock that pay a quarterly dividend of 1.25% of the Gross Profits of the Company. 10% of the Company’s Current Issued and Outstanding Common Stock Shares to be escrowed with the Company’s Legal Counsel in the name of “Blue Coast Securities Corporation”."
However, in order to be able to raise the 5m USD, Blue Coast Banc requires a small "fee" for its services. This sum is usually in the area of $2-5.000 USD, plus a smaller, monthly fee of $3-400 USD. Strange sums, considering we're supposed to be raising 5m USD here. (I can't help but wonder if Bernie Madoff also took these fees?)
Once you pay the fee, the rest of story depends on who you are. Most often, Steve's email account (firstname.lastname@example.org) will simply stop responding; other times Steve will try to lead you on for as long as possible. Some people have reported communicating for upwards a year, before finally losing all contact with Steve. The money is - of course - never raised; and no filing is ever done with the SEC. Google Steve's name to hear more of these stories.
In our case, we managed to stay clear of Steve's scam. We asked too many questions, we linked to Steve's criminal record and asked for proof of previous funding rounds that Steve had supposedly participated in. Steve could of course not show anything else than some online press releases that didn't even tell the name of the funded companies, written by - who else? - Steve himself. In the end, Steve abruptly cancelled the deal - not wanting to continue communications.
Steve is the arch-typical con artist and comic book villain; a man of few talents except that of superficial financial knowledge and a unique total disregard for his fellow man. Steve is a sociopath that will cheat, lie and con his way through life. He needs to be stopped and persecuted for his wrong doings.
The only good thing about Steve and Blue Coast Banc is that his entire scam is so superficial and stupid that it only takes an few questions to pierce through Steve's hopelessly moronic facade. His "10 billion" hedge fund doesn't have a logo, the company website is hosted by the free website platform Wix.com, he forgets to edit out old company names of $5m USD proposals, he can't show a portfolio of funded companies and when asked for "proof", he shows you online press releases written by himself. Steve is so stupid he doesn't understand the image he gives out; and for every honest working man out there, that's something to toast for. Cheers!
This report was posted on Ripoff Report on 08/09/2013 09:45 AM and is a permanent record located here: http://www.ripoffreport.com/r/Blue-Coast-Banc/Los-Angeles-California-90071/Blue-Coast-Banc-aka-Blue-Coast-Securities-Elaborate-but-dumb-fee-scam-Los-Angeles-1074449. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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