prime bank scam(redirected from Prime Bank Scams)
Prime Bank Scam
A scheme in which a con man attempts to persuade a person to invest in supposed investment vehicles through a prime bank (or one of the 50 largest banks in the world). These investment vehicles do not really exist; the con man promises lavish returns on these investments, but instead pockets the money. See also: Pyramid scheme.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
prime bank scam
A fraudulent investment scheme in which a promoter claims guaranteed high yields are available through investments in "prime" banks or other financial institutions. These scams generally amount to a pyramid scheme in which money from new investors is used to pay interest to prior investors. Prime bank scams can be identified by excessive guaranteed returns and claims by the promoter that the transactions should remain confidential.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.