Re: FBI NOTICE -- Finance, Currency & Metal Message Board

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Date Posted: 13:02:59 08/07/03 Thu
Author: Toby Winston
Subject: Re: FBI NOTICE
In reply to: Toby Winston 's message, "FBI NOTICE" on 13:00:58 08/07/03 Thu

>FBI NOTICE
>
>The purpose of this notice is to alert the public to
>persons who have reportedly marketed investment
>schemes which appear to be fraudulent. Various "prime
>bank" trading programs, or similar trading programs
>which purport to offer above average market returns
>with below market risk through the trading of bank
>instruments are fraudulent. Offering such programs, or
>claiming to be able to introduce investors to persons
>who have access to such programs, violates numerous
>federal laws, including criminal laws.
>
>It is illegal to engage in fraud in the offer or sale
>of a security. Under most circumstances, it is also
>illegal to sell securities which have not been
>registered with the U.S. Securities and Exchange
>Commission. A security includes the following items:
>
>"note", "stock", "bond", and "debenture" as well as
>more general terms - "investment contract" and "any
>interest or instrument commonly known as a "security".
>
>In the leading opinion, the Supreme Court of the
>United States held that the definition of a security
>includes an investment contract, which is "a contract,
>transaction, or scheme whereby a person invests his
>money in a common enterprise and is led to expect
>profits solely from the efforts of the promoter or
>third party..." Designating such instruments as
>"loans" does not alter their legal status as
>securities.
>
>The Federal Bureau of Investigation as well as other
>federal and state agencies have identified several
>characteristics common to fraudulent schemes. The
>characteristics include:
>
>*** Claims that investor funds can be placed in a bank
>account, and then used, without risk, to trade bank
>debentures, or other financial instruments;
>
>*** Claims that invested funds can be used to lease or
>rent U.S. Treasury Obligations and then use these same
>leased securities as collateral for further trading
>programs;
>
>*** Claims that trading Medium Term Notes (MTN's),
>Prime Bank Notes, or any other bank instruments, on a
>riskless basis, will yield above market average
>returns;
>
>*** Claims that Letters of Credit or Standby Letters
>of Credit can be traded for profits.
>
>In general, investment programs which offer secret,
>private investment markets, which offer above market
>rates of return with below market rates of risk, for
>privileged customers in Europe are fraudulent. There
>are no "secret" markets in Europe, or in North
>America, in which banks trade securities. Any
>representations to the contrary are fraudulent.
>
>In addition, investment programs in which a financial
>institution is asked to write a letter commonly
>referred to as a "Blocked Funds Letter", advising that
>funds are available in the account, that they are
>"clean and of non-criminal origin" and are free of
>"liens or encumbrances" for a certain time frame are
>frequently used to perpetrate fraud schemes. These
>letters have no use within legitimate banking circles.
>
>Some phrases are commonly seen in documents presented
>by fraudsters in the course of marketing fraudulent
>investment documentation. It should be treated with
>suspicion. these include, but are not limited to:
>
>Non-Circumvention, Non-Disclosure
>
>Good, Clean, Clear and of Non-Criminal orgin
>
>Blocked Funds Investment Program
>
>Prime Bank Trading Program
>
>Federal Reserve Approved
>
>Roll Programme
>
>Irrevocable Pay Orders
>
>Prime Bank Notes, Guarantees, Letters of Credit, Fresh
>Cut Paper......

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Replies:

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Re: FBI NOTICE -- Luca Mattei, 09:33:09 03/19/09 Thu

Re: FBI NOTICE -- Alan Samuel, 22:38:42 02/21/11 Mon