SEC on Bank Trading and HYIPs
 
By:
SEC
Date:
05/16/2000


So-Called "Prime" Bank and Similar Financial Instruments
published by the Securities Exchange Commission

Con artists who sell these bogus instruments frequently tell potential victims that their money will be pooled to invest in secret programs otherwise reserved for top financiers on Wall Street, or in London, Geneva, and other financial centers. These investments are often described as notes, guarantees, letters of credit, or debentures, and any supporting documentation is usually extremely complex and difficult to comprehend.

No matter what anyone tells you, these so-called securities do not exist. They are all scams. You should never invest if a promoter claims:
  • The investment will generate extremely high or risk-free returns, for example, 150% or more per year;
  • The financial instrument is traded by off-shore banks or on a world-wide secret exchange; and,
  • The financial instrument is approved or endorsed by the International Chamber of Commerce, the Federal Reserve, the World Bank, International Monetary Fund (IMF), or some other well-known international organization.

Not surprisingly, promoters of these scams often tell investors that regulators and banks will deny the existence of these prime bank programs.

The SEC urges investors to report information about the offer or sale of prime bank investments to the SEC Division of Enforcement Complaint Center at enforcement@sec.gov. For more information about how to invest wisely and avoid fraud, go to the Investor Assistance section of the SEC website.


Source:
SEC
URL:
http://www.sec.gov/enforce/alerts/prime.htm
Reports:
HYIP or Hype - Bank Trading Unmasked
Pirates of the Caribbean: Offshore Traps
Global Village Idiot's Guide


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