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Q: Medium Term Notes ( Answered,   4 Comments )
Subject: Medium Term Notes
Category: Business and Money > Consulting
Asked by: ideabiz-ga
List Price: $50.00
Posted: 07 May 2006 01:04 PDT
Expires: 06 Jun 2006 01:04 PDT
Question ID: 726228
Is there such a thing as trading Medium Term Notes, fresh cut
paper,Prime Bank Instruments, Notes, Guarantees, Trades or Letters of

etc. and making returns of 100% a week? Are these types of programs legal in the US?
Subject: Re: Medium Term Notes
Answered By: easterangel-ga on 07 May 2006 16:00 PDT
Hi! Thanks for an interesting question.

Please see the important disclaimer below stating that postings at
Google Answers is general information only and is not a substitute for
sound professional financial advice.

It seems that the Public Treasuries website of the US Government has
the answer for you, and based on the 100% a week claim of daily
return, this is probably a type of Prime Bank Instrument Fraud.

They say it goes by the name of:

?Prime Bank Debenture Trading?
?Prime Bank Instruments?
?Trades or Letters of Credit?
?US Dollar Bonds?
?Federal Notes?
?Medium or Mid Term Notes or Bank Notes?

Please note that these are some of the terms used in your question.
Other terms are supplied at their website. The Public Treasuries
website also says that investors usually get these types of documents
from fraudsters: (Document used by fraudsters)

I think reading the whole page from the Public Treasuries official
website would be beneficial for you so that you will not fall for this
scheme. Please click on our next link.

?Prime Bank Trading Programs, High Yield Investment Programs, Roll
Programs and Private Placement Programs? 

Truth be told however, that there are real Medium Term Notes and are
sanctioned by the SEC.

?In 1982, the SEC adopted Rule 415, which launched today's medium-term
note market. This allows issuers to continually offer medium-term
notes to investors in a manner similar to that of a commercial paper
program. Unlike a commercial paper program, the medium-term notes must
be registered, but registration is required only once every two years.
During those two years, the issuer is free to modify the medium-term
notes' nominal yield or term, as the issuer's needs or market demand
require. The process is called shelf-registration, and it makes
medium-term notes resemble commercial paper. Differences are that
medium-term notes have longer terms, are registered with the SEC, and
are usually coupon-bearing instruments, as opposed to discount

?Medium-Term Note? 

?Medium Term Note ? MTN? 

The website provides an explanation of the fraud as well.
But it also says that such instruments are not traded in the stock
market. You can go to PEFCO for secondary market trading of these

?PEFCO Medium-Term Guaranteed Note Facility is a secondary market
buyer of multi-year export loans that are guaranteed against
nonpayment by the Export-Import Bank of the United States ("Ex-Im
Bank") under a medium-term comprehensive guarantee.?

?Financing Loans? 

You can find the PEFCO website here:

Search terms used:
SEC "medium term notes" trading
PEFCO Medium-Term Guaranteed Note Facility

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Google Answers Researcher
Subject: Re: Medium Term Notes
From: probonopublico-ga on 07 May 2006 01:40 PDT
Returns of 100% a week?

This sounds like a scam ....

Subject: Re: Medium Term Notes
From: myoarin-ga on 07 May 2006 01:47 PDT
I agree with Probono.  

If you can give us links to a couple of sites that offer trading in
these instruments, I think we can demonstrate that they are scams.
Several years ago, before the expression "scam" developed, I heard
about investing or trading in letters of credit, and everything I read
about them sounded very fishy, somewhere between a Ponzi scheme and
the Nigerian connection.

Let us know.
Subject: Re: Medium Term Notes
From: probonopublico-ga on 07 May 2006 21:35 PDT
Well done, Easterangel, it's a very clever and fascinating scam.
Subject: Re: Medium Term Notes
From: easterangel-ga on 08 May 2006 15:38 PDT
Thanks Bryan! :)

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