What Is a Prime Bank Scheme?
The Securities and Exchange Commission (SEC) is responsible for protecting investors and the public from fraudulent activity and schemes within the financial industry. One of the types of investment fraud the SEC hopes to put a stop to is prime bank schemes.
A prime bank scheme is essentially a fake investment opportunity. Prime bank program runners claim to trade prime bank financial instruments on overseas markets to generate massive returns with little risk.
The problem is that these instruments and the markets they are supposedly traded on simply do not exist. Fraudsters try to make the investment opportunity seem legitimate by making complex documents that are difficult to understand and by advertising in reputable national newspapers.
Red Flags to Be Aware Of
Fortunately, whenever you hear the term “prime bank,” you can expect it to be a scheme, as these markets and financial instruments never exist. You might have been presented with a prime bank scheme if any of the following statements are true:
- You were promised high returns of up to 200 percent per month with little risk.
- The program runner is requiring confidentiality or extreme secrecy about the “opportunity.”
- The promoter refuses to explain the details of the transaction by claiming that only experts would understand.
- The program runner claims that the opportunity is available by invitation only.
Should any of these warning signs apply to the investment opportunity being presented to you, you will likely want to walk away before you fall victim to a prime bank scheme.
What to Do if You Suspect a Prime Bank Scheme
When you suspect prime bank fraud, consider reaching out to an attorney before you move forward with presenting your tip to the SEC. An experienced SEC whistleblower lawyer will be able to help protect your identity while the SEC begins investigating and represent you if you fall victim to retaliation for blowing the whistle.
The great thing about providing the information you have to the SEC is that not only will you be doing your part to help put a stop to fraud, but you’ll also be well on your way to becoming a financially rewarded whistleblower.
Speak with an SEC Whistleblower Lawyer
If you recently became aware of a potential prime bank scheme and are interested in providing your tip to the SEC, get in touch with a qualified SEC whistleblower lawyer at Meissner Associates as soon as possible. We can schedule your confidential tip evaluation today when you complete the secure contact form below or give our office a call at 1-866-764-3100.