Mar
19
“Prime Bank CD Schemes”
March 19, 2006 |
Watch Out! from North American Securities, on the “Investor Traps” list again this year is “prime bank schemes” these sofisticated scams where con artists promise high yield, tax-free returns that are supposed to come  from “off shore trades of bank debentures” Investors are pumped up on how lucky they are to be part of such information since only the rich and powerful know the secrets of such risk-free investments.
This one goes to the top of the list for down right con-jobs! There are no such prime bank investments!
The NASSA is warning these would be investors to watch out for get rich claims when one buys into pay phones or ATM machines. Padding the deal the promoters state that after a given time period, the equipment can be sold back to the original owner.
The list also has a “equity-indexed certificate of deposit” these hybrid securities offer a return that is based on a certain stoke market index, usually the S&P 500. The pricipal is FDIC insured, your return isn’t, your return is dependant upon the performance of the specific index, and painful as it is, you could get no return on your investment! Don’t confuse these bogus equity-indexed CD’s with the original, the federally insured, traditional certificate of deposit.
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