Our Chief Counsel's Office Tackles Fraud
September 21, 2004 — “I've got a no-risk business deal for you that will earn 20% a month,” the pitch might begin. “You loan my business $100,000, and I'll give you a Limited Edition Treasury Security from 1934 as collateral. The security is worth $500 million, so you have no risk in this deal. If the business deal falls through and we default, you cash in the collateral and make a bundle.”
Sound too good to be true? If the small voice in your head hasn't convinced you to walk away, the Chief Counsel's website can help you figure out whether a deal involving Treasury securities is a phony one. In this example, the proposed collateral is worthless because the Treasury Department has never issued "Limited Edition Securities." You can bet that any loans made under this business deal will never be profitable.
We talk about this scam in greater detail on our web site, as well as Prime Bank Trading Programs, high yield investment deals, phony securities, and sight drafts, at http://www.treasurydirect.gov/instit/statreg/fraud/fraud.htm.
The Chief Counsel's fraud team also works with law enforcement agencies to help them identify and prosecute fraud involving Treasury securities and practices. We provide witnesses to prosecutors worldwide, and keep informed on current developments in the frauds area by participating in both local and international conferences and working groups.
The treasuryscams.gov website provides detailed information to help you better understand Treasury securities. The more knowledgeable you are about Treasury securities, the less likely fraudsters will be able to prosper.
Please visit http://www.treasurydirect.gov/instit/statreg/fraud/fraud.htm for more information about various types of fraud involving Treasury securities and helpful tips on ways to protect yourself from financial fraud.