Fraud > HYIP
& Bank Debentures > HYIP
FORUM: Securities Fraud -- Due Diligence in Finance
Stock and Bond Fraud, including Boiler Rooms / Pump
and Dump Schemes, Mutual Fund & Hedge Fund Fraud, FOREX
scams, plus Churning, Private Placements, Venture and Bridge
Funding, IPOs, Viaticals Fraud, HYIP and Prime Bank scams,
MTNs, Historical Notes, Recovery Schemes, etc.
This is one of the most common financial scams. The scam artists
will a wild tale of fortune including some or all of the following.
The scam artists will spin a long line of hokey nonsense relating
to the post-World War II Bretton Woods accords, off-sheet
financing by the Top 50 worldwide banks, and guaranteed
or risk-free trading. They will tell you that they (or
somebody they are working for) is one of only five (or six,
or seven, or eight or whatever number they pull out of the
air at that particular moment) traders in the world who are familiar
with these types of trades and are capable of pulling them off.
They will tell you that these trades are done at the $100M
level only, but that miraculously you can start off with a very
small amount of money and margin yourself into a $100 million position.
Alternatively, they tell you that you can get a bunch of friends
together and pool the necessary funds.
They will also tell you that they or whoever they are working for
has done these trades for fifteen or twenty years, and have secretly
made hundreds of millions of dollars. They are allowing you to do
these trades instead of doing them themselves because they have
made enough money and want to help you benefit some church, charitable,
or humanitarian purpose. They will tell you that there is NO
WAY that you money can disappear, and that it will sit in
your own bank account unmolested until your hundreds of millions
arrive. They will tell you that you can make astronomical interest
rates, such as 20% to 80% per week, and that exponentially your
profits will skyrocket.
How the Scam Artists
Get Your Money
The scam artists prey on your lack of financial sophistication.
If you money was truly not at risk there would be absolutely
no reason to have to put it up. Yet, the scam artists come up with
a bunch of bogus tales about off-balance sheet financing
and other hooey that convinces you to do one of the following:
+ You deposit your money in an account with a Prime Bank
such as Citibank (which doesnt know the scam is being perpetrated).
The scam artists forge a letter of credit which they then exercise
and transfer your money offshore, never to be found.
+ You deposit your money in an account with a Prime Bank
such as CreditSuisse (which doesnt know the scam is being
perpetrated). The scam artists didnt tell you that the account
is a correspondent account held in that bank for their
own bogus bank that they formed, and they simply transfer your money
offshore, never to be found.
+ The scam artists convince you to put your money in a safe deposit
box. Later, they tell you that it is stupid to keep money in cash
where it is not earning interest. Instead, they say they will get
the traders to accept a bond, such as a
Houston Railroad Bond or an Emperial Chinese Bond that earns astronomic
rates of interest. Only much later do you discover that the bonds
are completely worthless.
And so forth and so on. Once your money has been deposited in the
bank, there are about a hundred different ways for the scam artists
to get at it.
THE LIES MADE TO PERPETRATE
"A big lie is more plausible than the truth."
-- Ernest Hemingway
Complete Lie: "There is a secret banking system where the
big banks make astronomical returns, and you can't participate unless
you pool with others or place your money with someone who has an
place in the system."
This is a COMPLETE LIE, and anyone who says this is a scam artist.
We regularly work with the major offshore banks, and have any friends
and acquaintances at these banks, and can tell you that they laugh
at the allegation that there is a "secret" banking system
which produces crazily high returns as the promoters of the bank
debenture scam suggest.
COMPLETE LIE: "The U.S. government is covering up this
secret banking system."
This is a COMPLETE LIE that the U.S. government is somehow covering
up this phantom banking system. This is NOT TRUE and anyone who
says this is a scam artist. First, as shown above, it doesn't exist.
Second, trading in currency is tightly monitored by literally hundreds
of private groups worldwide, and even a small trade would instantly
be recognized by these private groups.
COMPLETE LIE: "The program uses International Chamber of
Commerce Approved Forms."
The International Chamber of Commerce does NOT approve forms for
these programs, and anyone who claims this is a scam artist. To
the contrary, the International Chamber of Commerce has put out
warnings that it has not approved any such forms, and that forgers
are illegally making up such documents without either the knowledge
or approval of the ICC. Other forgeries which have been found include
forgeries of documents purporting to be from the U.S. Federal Reserve
Bank (FRB), the U.S. Department of Treasury, the Bank of England,
and even the Queen of England!
If you see anywhere in the scam artists' materials that they or
their forms are "approved" by the ICC run! This is the
baldest of lies.
COMPLETE LIE: "These securities do not need to be registered
with the U.S. Securities & Exchange Commission or the State
Securities Commission of the state wherein they are marketed or
This is NOT TRUE and anyone who says this is a LIAR. To the contrary,
when legitimate bank debentures are sold to the public, they are
ALWAYS registered with the Securities Commission of the state wherein
they are sold, and in most cases are also registered with the U.S.
Securities & Exchange Commission. IF YOU CANNOT CALL YOUR STATE
SECURITIES COMMISSIONER AND CONFIRM THAT THE DEBENTURES HAVE BEEN
REGISTERED, IT IS ALMOST CERTAIN THAT THEY ARE BEING MARKETED AND
Private Placement Lies: Many scam artists will pitch that
their schemes are somehow exempt from regulation because they are
a "private placement". The truth is that many states require
private placements to be registered, and at any rate if the scheme
raises over $2 million aggregate amongst the states (i.e., $2 million
anywhere) it MUST registered with the Securities & Exchange
Commission!!!!! So, if someone says that they have raised $20 million
dollars but they are not registered, it ain't a legitimate deal.
COMPLETE LIE: "There is a major U.S. bank which guarantees
This is NOT TRUE and anyone who says this is a LIAR. The scam artists
will tell you that they cannot disclose the identity of the U.S.
bank which guarantees the investment, or else will tell you the
name of whichever bank they pull off the top of their head, but
either tell you that you should not contact the bank directly, or
they get one of their scam artist buddies to call you up and represent
that they are a bank officer. No U.S. bank participates in these
schemes, period, and many of them issue warnings to the public not
to get involved in this scams.
A recent variation of this scam is for the scam artists to set
up an offshore bank with a name which is very similar to an international
bank, such as "Barclays International Bank" (which doesn't
exist and plays off the Barclays name). These offshore banks never
have any real assets or backing, and their guarantees are worthless.
COMPLETE LIE: "Others have made money with these programs."
Nobody except the scam artists have ever made money with these
programs. A few people have gotten a small portion of their money
back, usually for helping the scam artist scam somebody else, and
that is it. We've seen hundreds of these scams the past year,
but not a single person who could actually document that they made
even a single penny over what they invested into it.
People who claim that they have made money on these programs
always fall into one of two categories:
- Ringers, being persons set up and in cahoots with the
scam artists to claim that they have made money; and
- Suckers, folks who have been scammed and are now going
along with the scam artist on the condition that the scam artist
will repay them a portion of their money lost for getting new
suckers into these programs.
COMPLETE LIE: "These programs are back by or involved with
the International Monetary Fund."
This is a total load of bull hockey (see Notice at right). The
IMF has repeatedly warned about this scam.
So, if somebody claims that their investment has IMF involvement,
you know it is a total lie.
Bank/High Yield Investment Schemes
Report from the Fraud Section, Criminal Division of the Department
An HYIP Program that
Works! - Parsons Heritage Offshore Opportunities Ltd. is
the ONLY prime bank and HYIP program that YOU can trust! Strongly
Endorsed by Quatloos!
and Prime Bank Notes: Fact or Fraud?
Expose of Prime Bank NOtes, Corporate Roll Programs, Medium Term
Notes, Bank Guarantees, Letters of Credit, and Stand By Letters
of Credit, written by Investor Data Exchange.
HYIP/PRIME BANK/BANK DEBENTURES CASES