What are Prime Bank Investments?
Prime Bank Notes or Prime Bank Investments are investments which claim “special access” to programs or investments that are reserved for banks or other top financial institutions. These types of investments are usually represented to be overseas and yielding a high return in a short period with little or no risk. Only investors with the proper connections or financial net worth are told that they can participate. However, neither these investments nor the market described exist. Some promoters have begun avoiding using the term “Prime Bank” to avoid the appearance of fraud.
Common Features of Prime Bank and other Offshore Investments
Excessive Guaranteed Returns
Any investment offering high returns should be questioned. Investors should always question whether the returns promised are too good to be true and how such high returns are possible. Guaranteed high returns are a signature of Prime Bank fraud as well as offshore investments.
Sending your money offshore
Once your money has been wired offshore, it is difficult, if not impossible for your money to be repatriated. Moreover, most reasons for sending money offshore is to avoid taxes. This exacerbates the problem for victims who complain and assist securities regulators in uncovering fraudulent schemes in that there will often be tax implications for money sent off shore. Remember, once your money leaves the hands of U.S. financial institutions, it is extreamly difficult to trace where you money has gone.
Promoters of Prime Bank and Offshore Investments claim “special access” and require that knowledge of this investment should be kept confidential. Investors will often be told that if asked, bank officials would deny knowledge of these kinds of investments. Any investment where you must sign a non-disclosure or secrecy clause is most likely a fraud or exposes the investor to great risk.
Investors should be very cautions any time a promoter describes an investment as exclusive, by invitation only, or only available to a few select individuals. This is often coupled with a sense of urgency to invest. If the investment is as successful as is claimed, why do they need your money and why won’t the opportunity be available tomorrow?
All investments offered in the State of Utah should be registered with the Utah Division of Securities or qualify for a state or federal exemption. Before investing please contact The Utah Division of Securities to confirm registration.
Concerns with Prime Bank and other Offshore Investments
A promoter who seeks investor money for Prime Bank, Offshore, or similar investments will typically require the investment to:
In many cases, promoters fail to properly follow securities laws and offer unregistered securities to Utah investors, which is a violation of the law.
Many promoters fail to provide investors with adequate disclosure documents. Some will mislead or misrepresent the information and risks in their disclosure documents. Rarely will disclosure documents be provided for a Prime Bank or Offshore Investment. Omission or misrepresentation of material information in the offer or sale of a security is considered securities fraud. Remember that once your money leaves your country, it is difficult to follow and rarely comes back to the investor.
A promoter may or may not need to be securities licensed as a Broker-Dealer or Investment Adviser. Licensing is required anytime a sales agent or promoter sells a security and receives compensation or renders advice regarding a security for consideration.
Investors are frequently told that these types of investments must be kept a secret. This will often frustrate efforts to prosecute violators and return monies to victims in that the time period for bring actions against violators of the securities laws is limited. You should contact an attorney and notify a securities regulator as soon as you become aware of any wrongdoing or concerns with your investment.