A Securities Fraud Criminal Lawyer Explains Prime Bank Fraud
Prime bank fraud is a common type of securities or investment fraud. The scheme works by offering investors the opportunity to put money into a “secret, private investment market.” The U.S. Treasury indicates that many prime bank investment scams involve claims that the secret trading program is sanctioned by the World Bank, the International Monetary Fund, the U.S. Treasury Department, the Federal Reserve Bank, or the International Chamber of Commerce. The investors are promised low risks and higher rates of returns through special access to investment opportunities. The reality is, no such investments exist.
If you are accused of prime bank fraud, you are likely facing very serious criminal penalties including potential federal charges. You need to understand what your options are for raising defenses to the crime you are indicted for, or for negotiating a plea deal to try to limit or avoid jail time and reduce the restitution and fines you may be required to pay.
At Bukh Law Firm, PLLC, our experienced securities fraud criminal lawyers have helped many clients accused of involvement in scams related to prime bank investments. We can help you to raise defenses, make legal arguments, and explore options for responding to your charges that may make it possible for you to reduce the penalties you face or avoid conviction entirely. Give us a call to learn more about how our New York investment fraud lawyers can help you.
What is Prime Bank Investment Fraud?
Prime bank investment fraud schemes involve targeting investors on the Internet, through mailings, through telephone communications, and through other mediums. Investors have also been targeted through advertisements in national newspapers. The investors are told they are being invited to participate in a “prime bank” program that will provide access to low-risk investments with high rates of returns.
The investments may be referred to as “prime bank instruments” but there are many different names for the alleged investments that are offered. The “prime bank instruments” or other investments are often alleged to have been issued by a well-known organization. Investors are typically told that the opportunity is exclusive, by invitation only, and must be kept secret. In some cases, potential investors are even asked to sign non-disclosure agreements.
There are no prime bank instruments, and the money obtained from the investors is embezzled or taken by those operating the prime bank investment fraud scheme.
What are Different Types of Prime Bank Investment Fraud?
The Department of Treasury indicates that the term “prime bank investment fraud” applies to a variety of related-fraud schemes including:
- Prime bank guarantees
- Prime bank debentures
- Guaranteed U.S. bank notes
- High-yield trading programs
- Roll programs
- International Chamber of Commerce (ICC) 3039 letters of credit
- International Chamber of Commerce 3034 letters of credit
- Discounted treasury securities
- Discounted U.S. securities
- Securities backed by the International Monetary Fund
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Investor.gov reports that every investment offering in which these types of “prime bank” programs are offered is a scam because no such investments exist. Unfortunately, some people may become involved in this scam without intent to defraud. For example, you may have been asked to market or sell prime bank investments and may have been unaware that the investments you were selling were not viable money-making opportunities for investors.
Any involvement in a scam related to prime bank investments can result in charges for your own actions as well as for any crimes committed by co-conspirators who are a part of the fraud scheme. You need to be proactive in defending yourself to try to avoid being found guilty of a criminal offense that could lead to a lengthy prison sentence .
Criminal Penalties for Prime Bank Investment Fraud
The Securities and Exchange Commission can pursue legal action in the case of prime bank investment fraud. The SEC has pursued civil and criminal enforcement measures against people allegedly involved in prime bank investment scams, including freezing assets and imposing large monetary fines.
Defendants could also be charged with:
- Securities fraud under 18 U.S. Code Section 1348
- Mail fraud, under 18 U.S. Code Section 1341
- Wire fraud, under 18 U.S. Code Section 1343
- Theft and embezzlement under Article 155 of the New York Penal Code
How a Securities Fraud Lawyer Can Help if You Are Accused of Prime Bank Investment Fraud
At Bukh Law Firm, PLLC, our experienced securities fraud lawyers have helped many defendants accused of involvement with prime bank investment fraud scams. Give us a call today to learn how we can put our legal experience to work to help your resolve your legal problems.