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First, I WILL NOT debate whether or not these platforms or sources of investments are real or not. Let us, for the sake of this article, assume they are real and relevant.
What I want to focus on here, is the huge amount of cons, scams and fraud that are attached to these types of investments.
I know this article will not make me popular and my site will probably suffer by loosing a lot of traffic, but frankly I do not want this sort of traffic and though I cannot afford to take a traffic hit. I will suffer through in order to make sure I am not in subjecting my members to this level of fraud.
When You Say Huge, What Do You Mean?
According to the International Chamber of Commerce's commercial crime bureau, this type of scam involves $10 million U.S. daily in North America alone. They believe that the millions of dollars in losses reported every year represent only 10% of the total.
It is a crime which flourishes particularly strongly in today's global markets, with its voracious appetite for capital. The ease and speed with which documents and vast sums of money can be exchanged electronically makes vigilance all the more necessary.
There Must Be A Law
A number of prime bank securities fraud cases have been prosecuted by the SEC and federal criminal authorities. For example, one group which raised at least $10 million from a nonprofit corporation through the sale of prime bank notes were subsequently charged with wire fraud, money laundering and conspiracy, with sentences ranging from 11 to 19 years.
Prime bank fraud can currently be prosecuted under a variety of federal criminal statutes such as mail fraud (18 U.S.C. 1341), wire fraud (18 U.S.C. 1343) and conspiracy (18 U.S.C. 371).
Should you require more information on this topic the SEC has a special section devoted to Prime Bank Scams.
What Investments Are You Talking About?
|►||bank secured trading program|
|►||high-yield investment program|
|►||bank debenture trading program|
|►||currency trading program|
|►||off balance sheet program|
|►||money center instrument purchase and resale program.|
which deals in the high-finance world of trading in:
|►||world bank paper|
|►||Federal Reserve notes|
|►||blocked fund letters|
|►||IMF issued bonds|
|►||standby letters of credit|
|►||prime bank notes, guarantees or debentures|
|►||Bills of Exchange or Bills of Equity|
|►||commercial bank credit lines|
|►||irrevocable letters of credit|
|►||"zero interest" credit instruments or letters of credit|
|►||the arbitrage of senior bank instruments|
|►||Medium Term Notes (MTN)|
|►||currencies, commodities, gold and other financial instruments.|
The Commercial Real Estate Professional Investor Group Site www.CREPIG.com will no longer allow promotions of these types of instruments and will not hesitate to suspend a member that does not comply with this policy. Since there are so many different types of these investments, CREPIG we reserve the right to choose which ones we will, or will not allow on a case by case basis.
PPP Bank Fraud Cases
Over the past few years, a number of reported decisions affirmed convictions of prime bank schemers. For example, this past summer the Fourth Circuit affirmed defendants’ convictions in United States v. Bollin, 264 F.3d 391 (4th Cir. 2001), for conspiracy, wire fraud and money laundering.
In United States v. Polichemi, 201 F.3d 858 aff’d on rehearing, 219 F.3d 698 (7th Cir. 2000), defendants defrauded nearly thirty investors out of more than $15 million by marketing "prime bank instruments," which they described as multimillion-dollar letters of credit issued by the top fifty or one-hundred banks in the world.
In a related case, United States v. Lauer, 148 F.3d 766 (7th Cir. 1998), Lauer, the administrator of an employee pension fund, plead guilty to diverting millions of dollars to the prime bank scheme prosecuted in the Polichemi case.
In another recent case, S.E.C. v. Lauer, 52 F.3d 667, 670 (7th Cir. 1995), Chief Judge Posner declared
Prime Bank Instruments do not exist. So even if [a co -schemer] had succeeded in raising money from additional investors, it would not have pooled their money to buy Prime Bank Instruments. It would either have pocketed all of the money, or, if what its masterminds had in mind was a Ponzi scheme, have pocketed most of the money and paid the rest to the investors to fool them into thinking they were making money and should therefore invest more (or tell their friends to invest).
In United States v. Richards, 204 F.3d 177 (5th Cir. 2000), the Fifth Circuit up held defendants’ convictions for conspiracy, wire fraud, mail fraud and interstate transportation of stolen property. At trial, the government presented the following evidence describing how defendants induced participants to invest in a “roll program”:
In United States v. Rude, 88 F.3d 1538, 1548 (9th Cir. 199 6), defendants were charged with engaging in a prime bank scheme. In affirming their convictions, the Court of Appeals found, among other things, that the government had proved beyond a reasonable doubt "that the very notion of a ‘prime bank note’ was fictitious," and cited other evidence that the term "prime bank" was not used in the financial industry "and was commonly associated with fraud schemes." Id. at 1545.
In Stokes v. United States, No. 97-1627, 2001 WL 29997, at *1 (S.D.N.Y. Jan. 9, 2001), defendant was convicted of conspiracy, wire fraud , money laundering and interstate transportation of fraudulently obtained money.
There are other scenarios touting involvement in INFRASTRUCTURE LOANS supposedly guaranteed by the WORLD BANK, the INTERNATIONAL MONETARY FUND, Swiss Banks, PARALLEL ACCOUNTS, FOREIGN CURRENCY EXCHANGE (FOREX), STANDBY LETTERS OF CREDIT (SBLC), and accounts over which the investor supposedly has sole control..
In every case funds disappear, which usually involves MONEY LAUNDERING. So what happens to your money?
It goes toward paying new investors PONZI-fashion; it goes into travel, scam expenses, yachts, entertaining, jewelry, more scam expenses, houses, bribes, Mercedes-Benzes, gambling, and accounts stashed away in various countries in SHELL ACCOUNTS.
Does This Sound Familiar?
Again I am not saying that these programs are not real or do not exist in some fashion. Please do not comment back telling me how much I do not understand MTNs or PPP. BG/SBLCs, This is not the point. The point is that there is too much fraud attached to these instruments and so it is better that we do not allow this type of investment on our site.