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Debt Elimination
ALERT from the Office of the Comptroller of the Currency.
Subject: Illegal Financial Activity
Description: Fictitious Debt Elimination Schemes
Date: October 1, 2003
TO: Chief Executive Officers of All National Banks; All State Banking Authorities;
Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal
Deposit Insurance Corporation; Conference of State Bank Supervisors; Deputy
Comptrollers (districts); Assistant Deputy Comptrollers; District Counsel
and All Examining Personnel
RE: Debt Elimination Schemes using Fictitious or Worthless Bonds, Due Bills
and Bills of Exchange
Please be advised that worthless instruments entitled "Bond for Discharge
of Debt", "Bill of Exchange," "Due Bill," "Redemption
Certificate," or other similarly titled documents continue to be presented
to financial institutions, mortgage companies, credit card issuers, and retail
establishments throughout the United States in an effort to eliminate legitimate
debts. Many of these schemes are premised on baseless or fraudulent claims
against the United States Treasury, the Secretary of the Treasury, the Office
of the Comptroller of the Currency, the Board of Governors of the Federal Reserve
System, the Internal Revenue Service, or other federal or state agencies. (See
also OCC Alert 2003-7 and OCC Alert 99-10).
Regardless of how such instruments or documents are titled or whether they
appear authentic, they are worthless, have no legal validity, and are not payable
through the United States Treasury, the Secretary of the Treasury, the Comptroller
of the Currency, or any other federal or state agency. The OCC is aware of
the following organizations and Web sites promoting these fraudulent schemes:
The creation and presentment of these fictitious instruments may be a violation
of Title 18, Section 514, Fictitious Obligations, or other federal criminal
statutes, and any person(s) using such fictitious instruments with the intent
to discharge valid debts may be subject to criminal prosecution. If a fraudulent
document such as those described above is presented to your financial institution,
do not return it. Instead, retain the document and file a Suspicious Activity
Report. Deliver the instrument and a copy of the SAR to the local office of
the Federal Bureau of Investigation.
Please direct any questions or provide further information to the attention
of the OCC at:
E-mail: occalertresponses@occ.treas.gov
Mail: Office of the Comptroller of the Currency
Enforcement & Compliance Division, MS 8-10
250 E Street, SW, Washington, DC 20219
Telephone: (202) 874-4800
Fax: (202) 874-5301
Internet: http://www.occ.treas.gov
