|
Millions
of
Dollars
Lost
By
Seniors
in
"Prime
Bank"
Schemes
In
Past
Three
Years
Jan.
25,
2002
-
U.S.
Senator
Larry
Craig,
the
ranking
member
of
the
Senate
Special
Committee
on
Aging,
has
joined
with
national
officials
and
state
law
enforcement
personnel
warning
senior
citizens
to
be
cautious
with
their
retirement
money.
"In
any
economic
downturn
people
will
try
to
maximize
their
savings
and
with
today's
lower
rates,
some
are
tempted
by
risky
get-rich-quick
schemes.
It's
in
this
type
of
environment
that
scam
artists
seem
to
flourish
--
at
least
for
a
while
--
before
being
prosecuted
by
the
law,"
Craig
said.
"Unfortunately,
with
this
type
of
scam,
senior
citizens
can
lose
their
entire
life
savings."
One
of
the
latest
investment
frauds
circulating
throughout
the
country
is
the
so-called
"prime
bank"
scam.
Over
the
last
three
years
regulators
at
the
Securities
and
Exchange
Commission
have
shut
down
approximately
three
dozen
such
schemes,
with
losses
totaling
hundreds
of
millions
of
dollars.
"There
are
no
''prime
bank''
investments,
but
one
of
the
common
claims
of
the
con-artists
is
that
banks
and
government
officials
want
to
keep
the
trade
of
such
monetary
instruments
'highly
secret.'
Those
who
make
such
claims
simply
want
to
steal
your
money,"
Craig
said.
While
attempting
to
lure
investors,
criminals
will
often
claim
that
"prime
bank"
financial
instruments
are
issued
by
banks
to
other
banks,
and
are
therefore
safe
and
profitable.
Scam
artists
often
use
sophisticated
sounding
terms,
referring
to
such
things
as
"prime
bank"
guarantees,
notes,
debentures,
standby
letters
of
credit,
or
blocked
funds
in
order
to
impress
their
prospects.
Last
week
at
a
national
press
conference
in
Washington,
DC,
one
investor
from
Utah
warned
others
that
he
had
lost
over
$50,000
after
a
close
friend
told
him
he
could
make
25
percent
per
month
return
on
his
investment
in
a
"prime
bank"
program.
"It's
the
same
old
story.
If
it
sounds
too
good
to
be
true,
it
probably
is,"
Craig
said.
Three
years
ago
the
Idaho
Department
of
Finance
won
a
judgment
against
two
Boise-based
defendants
who
were
involved
in
a
"prime
bank"
scheme.
The
state's
investigation
revealed
that
more
than
$225,000
was
lost
by
Idaho
investors.
Seniors
and
others
worried
about
potential
financial
scams
should
call
the
-
U.S.
Securities
and
Exchange
Commission
at
1-800-SEC-0330.
For
more
information,
log
on
to:
North
American
Securities
Administrators
Association:
http://www.nasaa.org
U.S.
Securities
and
Exchange
Commission:
http://www.sec.gov/complaint.shtml
|
