Subject: Fraudulent Investment Programs
Date: March 30, 2001
Description: Fictitious Financial Programs Erroneously Attributed to the Federal Reserve
Fraudulent Investment Programs: Fictitious Financial Programs Erroneously Attributed to the Federal Reserve
To: Chief Executive Officers of All National Banks; All State Banking Authorities; Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal Deposit Insurance Corporation; Conference of State Bank Supervisors; Deputy Comptrollers (Districts); Assistant Deputy Comptrollers; District Counsel and Examining Personnel
The Office of the Comptroller of the Currency is aware of an increasing volume of bogus proposals currently being promoted and directed toward banks and municipalities to leverage investment portfolios through some type of secondary market activity. These programs are purported to generate high yields, up to 10 percent per month or more, at no risk to the original investment because they are allegedly managed by the Federal Reserve, the U.S. Central Bank, or are under the personal supervision of the Chairman of the Board of the Federal Reserve System.
The Federal Reserve System of the United States does not support, issue, or supervise any such programs. These types of programs have no financial validity and will place the participant at extreme financial risk and reputation risk.
The scenarios currently being proposed may utilize deposit, trust, or safekeeping accounts at major financial institutions which are stated to
These programs are fictitious. They appear to be "too good to be true," and they are. We strongly suggest that you exercise caution to ensure
Any information which you may have concerning this matter should be brought to the attention of:
Brian C. McCormally