Eclipse Scheme or Agreement

As the world awaits the arrival of a total solar eclipse on August 21, 2017, a different type of eclipse is also making headlines – the “eclipse scheme” or “eclipse agreement.” This recently emerged business model has raised concerns and controversy, prompting regulators to issue warnings.

An eclipse scheme is a type of investment opportunity that involves purchasing or leasing land or other property, typically in a rural area, with the promise of generating revenue from the rental or use of the property during an upcoming solar eclipse. The eclipse scheme operators, also known as promoters, may claim that the property is situated in the path of totality or near a prime viewing location, and that this will attract a large number of visitors during the eclipse.

The promoters may also claim that the property will appreciate in value after the eclipse due to increased demand from tourists and eclipse enthusiasts. Some schemes may offer additional incentives such as access to exclusive viewing events, transportation, and lodging arrangements.

While the idea of profiting from a natural phenomenon may seem appealing, investors should be cautious before jumping on board an eclipse scheme. The Securities and Exchange Commission (SEC) has issued warnings about fraudulent schemes related to the eclipse, emphasizing that investors should be wary of any promises of high returns with little or no risk. The SEC also urges investors to carefully research the property and the operators behind the scheme before investing any funds.

In addition to potential fraud, eclipse schemes have also come under scrutiny for their environmental impact. The influx of visitors to rural areas during an eclipse can place a strain on local resources and infrastructure, and some schemes may exacerbate this by encouraging large-scale development and commercialization of the land.

One example of these issues can be seen in the Eclipse Festival that took place in Oregon in August 2017. The festival was organized by Global Eclipse Gathering LLC and promised a once-in-a-lifetime experience for attendees to view the eclipse alongside music, art, and spiritual offerings. However, the festival faced backlash from local residents and environmentalists concerned about the impact on the fragile ecosystem and wildlife of the Ochoco National Forest, where the festival was held.

Investors looking to profit from the eclipse should exercise caution and conduct thorough research into any eclipse schemes before investing. The best way to approach any investment opportunity is to consult with a licensed financial advisor or attorney who can provide guidance and ensure compliance with applicable laws and regulations.

In conclusion, while the total solar eclipse is a rare and fascinating event that inspires awe and wonder, investors should be wary of any schemes or agreements that promise quick returns or easy profits. Instead, they should approach investments with a careful and informed mindset to avoid falling victim to scams or contributing to harmful environmental impacts.