Negotiable Financial Instruments > This page

SEC - So-Called "Limited Edition" United States Treasury Securities
June 20, 1997

The Securities and Exchange Commission (SEC) is warning investors and financial institutions to beware of a new investment scheme involving so-called "Limited Edition" United States Treasury securities. The U.S. Department of Treasury has advised the SEC that these securities do not exist.

No matter what anyone tells you, there's no such thing as a "Limited Edition" Treasury. It's a scam.

Overseas con artists are trying to defraud banks, broker-dealers and other financial institutions by offering to sell and structure transactions in these bogus securities. As part of the scheme, the con artists are seeking banks to act as go-betweens for sales of these fictitious securities.

The sales pitch for the scam misrepresents the way legitimate U.S. Treasuries may be issued, bought or sold. It also describes the "Limited Edition" Treasury securities as:

  • having a term of 10 years,
  • yielding an annual interest rate of 6%,
  • requiring a minimum purchase amount of $100 million,
  • having an initial price of 57% of face value,
  • having an unspecified offering amount (available for sale until "exhausted"), and
  • being issued in physical (paper) form.

If you have information on the offer or sale of "Limited Edition" Treasury securities, contact the SEC Division of Enforcement, 450 Fifth Street, N.W., Mail Stop 2-3, Washington, DC 20549, or via e-mail to
Alerts regarding these fictitious securities have also been issued by

Information obtained from SEC web site:

Recommended further reading:
The Informed Investor - "Prime Bank" Scams
View of FBI on "Letter of Credit" and "Prime Bank Note"
Investment Scheme Advisory Alert by the Federal Reserve Bank of New York
"Prime bank" schemes
ICC alert on "Prime Bank Instrument" scams
Uncovering secret market fraud - Price Waterhousecoopers
SEC - How Prime Bank Frauds Work
SEC on Primebank

Books on Financial Instruments

Please note that this is not a solicitation or an offer to provide these entities.

Please note that you should consult with your financial and legal advisors before using the information on this web site. We provide the information in good faith but as the applicable laws may differ from country to country, we are not responsible for any actions because of this information.