U.S. Senator Larry Craig, the chairman of the Senate Special Committee
on Aging, has joined with national officials and state law enforcement
personnel warning senior citizens to be cautious with their retirement
money.
"In
any economic downturn people will try to maximize their savings and with
today's lower rates, some are tempted by risky get-rich-quick schemes.
It's in this type of environment that scam artists seem to flourish --
at least for a while -- before being prosecuted by the law," Craig
said. "Unfortunately, with this type of scam, senior citizens can
lose their entire life savings."
One
of the latest investment frauds circulating throughout the country is
the so-called "prime bank" scam. Regulators at the Securities
and Exchange Commission have shut down over three dozen such schemes,
with losses totaling hundreds of millions of dollars.
"There
are no "prime bank'' investments, but one of the common claims of
the con-artists is that banks and government officials want to keep the
trade of such monetary instruments 'highly secret.' Those who make such
claims simply want to steal your money," Craig said.
While
attempting to lure investors, criminals will often claim that
"prime bank" financial instruments are issued by banks to
other banks, and are therefore safe and profitable. Scam artists often
use sophisticated sounding terms, referring to such things as
"prime bank" guarantees, notes, debentures, standby letters of
credit, or blocked funds in order to impress their prospects.
Last
week at a national press conference in Washington, DC, one investor from
Utah warned others that he had lost over $50,000 after a close friend
told him he could make 25 percent per month return on his investment in
a "prime bank" program.
"It's
the same old story. If it sounds too good to be true, it probably
is," Craig said.
Seniors
and others worried about potential financial scams should call the U.S.
Securities and Exchange Commission at 1-800-SEC-0330
Now,
keep up to date with daily feeds of newly posted stories about America's
Seniors...click on the box to the left