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SEC Stops Prime Bank Scam

The SEC has stopped a prime bank scam operating in Colorado.  The Commission charged  Stanley W. Anderson, Edwin A. Smith, with running the scheme through their companies, Trinity International Enterprises, Inc., and CFO-5, LLC, and charged Michael D. Norton, Nicholas R. Fair, and Charles L. Kennedy with selling the bogus investments.  
I worked on several prime bank cases in my days at the SEC, [...]

The SEC has stopped a prime bank scam operating in Colorado.  The Commission charged  Stanley W. Anderson, Edwin A. Smith, with running the scheme through their companies, Trinity International Enterprises, Inc., and CFO-5, LLC, and charged Michael D. Norton, Nicholas R. Fair, and Charles L. Kennedy with selling the bogus investments.  

I worked on several prime bank cases in my days at the SEC, and naively believed that our cases would alert the entire investing world to the scams so that no one would ever fall for another.  I was wrong.  Prime bank scams frauds have continued unabated and appear to be reaching epidemic proportions.  More than any other scam, they prey upon investors who consider themselves sophisticated.  The scam artists rely upon the investors’ pride and reluctance to admit that they don’t understand the investment. 

Because they are too proud to seek expert advice, baby boomers are losing what it took them a lifetime to save.  If you are considering investing in any unregistered investment, no matter who is offering it, and no matter who else you know who has invested in it, seek the advice of someone who can tell the difference between a legitimate investment and a very cleverly disguised fraud. 

 

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