International fraud artists have invented an investment scheme that offers extremely high yields in a relatively short period of time. In this scheme, they purport to have access to “bank guarantees” which they can buy at a discount and sell at a premium. By reselling the “bank guarantees” several times, they claim to be able to produce exceptional returns on investment. For example, if $10 million worth of “bank guarantees” can be sold at a two percent profit on ten separate occasions, or “traunches,” the seller would receive a 20 percent profit. Such a scheme is often referred to as a “roll program.” To make their schemes more enticing, con artists often refer to the “guarantees” as being issued by the world’s “Prime Banks,” hence the term “Prime Bank Guarantees.” Other official sounding terms are also used such as “Prime Bank Notes” and “Prime Bank Debentures.” Legal documents associated with such schemes often require the victim to enter into nondisclosure and noncircumvention agreements, offer returns on investment in “a year and a day”, and claim to use forms required by the International Chamber of Commerce (ICC). In fact, the ICC has issued a warning to all potential investors that no such investments exist.

The purpose of these frauds is generally to encourage the victim to send money to a foreign bank where it is eventually transferred to an off-shore account that is in the control of the con artist. From there, the victim’s money is used for the perpetrator’s personal expenses or is laundered in an effort to make it disappear.

While foreign banks use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

Some Tips to Avoid Prime Bank Note Related Fraud:

Think before you invest in anything. Be wary of an investment in any scheme, referred to as a “roll program,” that offers unusually high yields by buying and selling anything issued by “Prime Banks.”

As with any investment perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.

Be wary of business deals that require nondisclosure or noncircumvention agreements that are designed to prevent you from independently verifying information about the investment.

 Fall mugu (to)

To be fooled, to become victim of advance fee fraud.

Flash of account
Cause the victim’s bank account to temporarily show a large credit. This is intended to induce the victim to believe in the deal and send money. The credit gets reversed by the bank when it is discovered that the original cheque or electronic transfer was fraudulent.

Format
The scheme or script of an advance fee fraud, e.g., the late dictator format (the scammer pretends to be a relative of a dictator, e.g. Maryam Abacha, “Wife” of Sani Abacha), the next of kin format, the lottery format.

Guyman, guy
Scammer engaged in advance fee fraud.

Jokeman
A scambaiter.

Luxcini
An investment scam involving a line of men’s luxury clothing based in Beverly Hills, California

Maga, mugu, mugun, mahi, magha, mahee, mayi, mayee, mgbada(antelope)
Victim of advance fee fraud. “Mugu” is Igbo for “fool” and is often used as an insult by scam-baiters referring back to the scammer.

Modalities
commonly used term for methods of funds transfer.

Nwachukwu
An advanced fee fraud posing as a Stock Options trading corporation.

Oga or Chairman
Boss

Owner of the job, Catcher
Scammer who makes the first contact with a victim and then passes him on to another scammer who finishes the job. The latter shares the spoil with the former.

Runs
An (illegal) activity.

Yahoo millionaires, yahoo boys
Scammers

Yahoo yahoo
The act of scamming, especially through the use of a Yahoo! mail address.  

• If an “opportunity” appears too good to be true, it probably is.
• Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.
• Do not invest or attempt to “purchase” a “Letter of Credit.” Such investments simply do not exist.
• Be wary of any investment that offers the promise of extremely high yields.
• Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.