prime bank scam

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.
References in periodicals archive ?
One judge characterized a prime bank scam as inherently complex, deliberately designed this way by criminals.
These promoters perpetrate prime bank scams throughout the world and claim that they do this continually, making huge profits in a short time period with no risk.
Investment Fraud
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