SEC Issues Investor Alert Regarding "Prime Bank" Investments

The SEC Office of Investor Education and Advocacy issued an Investor Bulletin to warn investors about fraudulent investment schemes involving purportedly high-yield, risk-free international finance programs.

In the Investor Bulletin, the SEC warns that all "prime bank" investment programs are fraudulent. According to the SEC, the promoters of such programs attempt to make their schemes sound legitimate by using complex, sophisticated and official-sounding language. The Investor Bulletin lists "red flags" that could signal "prime bank" fraud, and recommends that investors avoid investing money with unlicensed or unregistered sellers.

See: Investor Bulletin: "Prime Bank" Investments Are Scams;Investment Adviser Public Disclosure.