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"Prime Bank" Security Program Scam Targeting Retirement Plan Investors Halted

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03-16-1999

Sec v. Cook

The U.S. District Court for the Northern District of Texas stopped a scam targeting individual retirement investors as well as religious and non-profit groups. The scheme induced investors with an investment that would allegedly yield 24 to 60 percent returns. The supposed security was a "prime bank" program, which was to guarantee the investments. These "prime banks" were professed to be in Europe. However, no investments were actually ever made, and no funds were guaranteed by any banks. It is conjectured that $30 million in investor moneys have been misappropriated. (SEC v. Cook, N.D. Texas, No: 3:99CV051-X, 3/16/99)