![]() ![]() Prime Bank Investment Fraud. Prime Bank Instrument fraud schemes have attracted significant international attention, since individuals and organizations have lost billions of dollars worldwide. Treasury Securities. International Monetary Fund Backed Securities. Common Examples. In these schemes, the fraud artists purport to have access to a secret trading program sanctioned by the Federal Reserve Bank, the Treasury Department, the World Bank, the International Chamber of Commerce, or the International Monetary Fund. Read about a fairly common example of how this fraudulent world is explained to potential investors. The more the explanation given to you resembles this explanation, the more likely you're being offered a fraudulent investment. Various . Representations to the contrary are fraudulent. Also, investment programs in which a financial institution is asked to write a letter, commonly referred to as a . These letters have no use in legitimate banking circles. The symbols, names, and products of the U. Private Placements of Securities A private placement is a direct private offering of securities to a limited number of sophisticated investors. It is the opposite of a public offering. Investors in privately placed securities include insurance companies, pension funds. S. Treasury Department are misused in these schemes in several ways. Some schemes claim that the U. S. Treasury: Backs or approves such programs. Has a . Under most circumstances, it is also illegal to sell securities that have not been registered with the U. S. Securities and Exchange Commission. A security includes the following items: . Warning Signs. Name dropping. Buzzwords. Excessive secrecy. Over- reliance on authentication. Enabling growth—private placement memorandum and business plan writing, 144A offerings, securities listings & services to help raise capital. Ratings play an important role in structured finance for instruments that are meant to be sold to investors. Many mutual funds, governments, and private investors only buy instruments that have been rated by a known agency, like Moody's, Fitch or. Excessive disclaimers. Unwarranted appearance of professionalism. Big player behind the scenes. Yields are too high. Lack of transactional basis. A secondary market where these investments can be laid off quickly and profitably.
Flawed documentation. What to Look For. There are many terms that are commonly seen in documents presented by fraudsters in marketing fraudulent investment schemes. Fraudsters often mimic and misuse legitimate banking terms. Many of the following genuine terms are misused along with those that have no meaning in the real world. They are thrown together in documents that contain a mix of fact and fiction, often confusing to a first- time investor. Non- circumvention. Non- disclosure. Good, Clean, Clear, and of Non- Criminal Origin. Blocked Funds Investment Program. Prime Bank Trading Program. Federal Reserve Approved. Treasury Approved. Roll Program. Irrevocable Pay Orders. Prime Bank Debentures, Notes, Guarantees, Letters of Credit. Fresh- Cut Paper. High- Yield Investment Program (HYIP)ICC 3. Letter of Credit. Off Balance Sheet Program. Prime Bank Debenture Trading. Prime Bank Instruments, Notes, Guarantees, Trades, or Letters of Credit. Prime European Bank Letters of Credit. Prime World Bank Debentures or Financial Instruments. Prime Insurance Guarantees. High- Yield Debenture Trading, Financial Programs, Asset Management Programs. High- Yield Investment Programs (HYIP)High- Yield Promissory Notes or Bank Notes. Guaranteed Bank Notes. Intermediate Bank Notes. Roll Programs or Bank Debenture Roll Programs. ICC 5. 00 or 6. 00 Bank Debenture Instrument. IMF (International Monetary Fund) Stand- by Letters of Credit. IMF Backed Securities, Bill of Exchange, Bill of Equity, or Backed Bonds. Discounted U. S. Treasury Obligations, Renting or Leasing of Treasury Securities. Blocking of Assigned Treasury Securities. Government Agencies will deny the existence of these programs because the Government does not want your money to leave the U. S. U. S. Government Agencies try to seize the funds for themselves. These funds will be used as collateral. Payment. CUSIP Number. Discounting L/Cs. Private Placement Programs/Trade Platforms: Real or a Scam? We are often contacted by project developers, investors, entrepreneurs and brokers who are looking to raise capital, or who are looking for investment opportunities that provide higher returns for themselves or their clients. In short, they are real, but not in the way they are often described. There are many myths surrounding these programs that we will attempt to dispel. In addition, they are told they must submit POF (proof of funds), a CIS (client information summary) or KYC (know your client) package, along with their passport. Nothing could be further from the truth. It should be noted that we have no relationship with MB Assets or its principals—their white paper is provided for educational purposes only and should not be construed as an endorsement of the firm or its programs. Private placements are used by companies to raise capital from private investors often via a set of investment documents known as a Private Placement Memorandum (PPM). For more information on Private Placement Memorandums click here. Prime Bank Programs. More often than not, when people refer to PPPs they are referring to what are more properly known as Prime Bank Programs. Prime Bank Programs, also known as Prime Bank Investments, High Yield Investment Programs (HYIPs), Buy- Sell Programs or Roll Programs, are clearly and universally fraudulent. In recent years, fraudsters have attempted to circumvent these governmental warnings with a clever ruse. Bank Guarantees, as they are known outside of the US, or their US counterpart, Standby Letters of Credit, are most often used in interational commerce where a seller might be unsure about a buyer's ability to pay for goods once received. One way of overcoming this impasse is to utilize a bank guarantee or standby letter of credit. Banks are not in the business of losing depositors’ money, so in order for them to issue a SBLC or BG in the first place, they would underwrite the SBLC/BG similar to an unsecured loan- -meaning obtaining an SBLC/BG is a difficult endeavor to begin with. Which, of course, begs the question: if the borrower has sufficient standing with the bank to be approved for an SBLC/BG and sufficient funds to cover the cost of issuing it, why are they contacting us? Most are actually looking to LEASE an SBLC/BG and use the instrument as collateral for a loan or cash investment.
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