Fraud > Treasury
Scams & Forgeries > Exhibit:
Reprinted from: http://www.treasuryscams.gov/cc/ccphony2.htm
Examples of Known Phony Securities
"Limited Edition" Treasury Securities
The U.S. Treasury has become aware that certain foreign
individuals and groups are attempting to sell fictitious Treasury
securities referred to as "Limited Edition" Treasury securities.
As part of this scheme, entities such as broker-dealers and banks
are being approached to act as fiduciaries for transactions. The
proposal to sell these fictitious securities makes misrepresentations
about the way marketable United States Treasury securities are bought
and sold and it also misrepresents the role that the U.S. Treasury
plays in the original sale and issuance of our securities.
The U.S. Treasury has requested that the SEC investigate
this matter and that it notify its foreign securities regulatory
counterparts. The U.S. Treasury has also contacted the NASD, NYSE
and financial institution regulatory agencies to alert their examiners
and their respective members or financial institutions that they
supervise. The Secret Service and FinCEN have also been notified.
All of these organizations were advised that there is no such security
as a "Limited Edition" Treasury security. In response
to our requests, a number of regulatory agencies have issued alerts
or warning notices to their institutions and members.
U.S. Treasury Bills - One Year "Fresh Cut"
The U.S. Treasury has become aware that the above-named
fictitious securities are being offered for sale. An individual
was offered these securities by a person who represented himself
to be a consultant to Lesser Developed or Third World countries.
This particular transaction was for $500 billion -- an astounding
amount in itself. In another incident, a large government securities
dealer was contacted to enter into a transaction involving these
fictitious securities. The U.S. Treasury has never issued any Treasury
bills that were named One Year "Fresh Cut."
"U.S. Dollar Bonds"
U.S. Treasury gets many inquiries, mostly from the Far East, about
these bonds being issued in the 1930's or early 1940's by the CIA
to help Chiang Kai-shek fight the communists. It is alleged that
they have been buried in caves by his generals and their heirs for
years and have recently been unearthed. They are now being fraudulently
offered to people at a fraction of their face value. This story
is false. These securities are not genuine and do not bear provisions
that even remotely resemble Treasury securities. Click on the thumbnail
image at left to view
a full-size image of an alleged "U.S. Dollar Bond" (130K
JPG file, uploaded 4/16/99).
Most of these fictitious obligations, on their face,
refer to the Ministry of Finance of the United States and the Washington
Bank of America. There never was a Ministry of Finance of the United
States and to the best of our knowledge, the Washington Bank of
America is non-existent. When confronted with this information,
fraud artists still fall back on the "CIA did it and didn't
tell anyone" routine. The visual appearance of a registered
or bearer Treasury security is considerably different from so-called
United States Dollar Bonds.
There have been arrests and convictions in the United
Kingdom against individuals that were alleging these to be obligations
of the United States. Several other investigations are being conducted.
Many of our inquiries come from West Coast law firms that are checking
on the validity of these bonds for clients that reside in China,
Singapore and Taiwan.
Fraudulent "Federal Notes" or "Bonds"
U.S. Treasury has received hundreds of contacts about these bogus
securities, commonly known as "Morgenthaus" as Robert
Morgenthaus was Secretary of the Treasury in 1934. These "federal
notes" are not currency, neither are they bearer bonds. They
are in fact crude forgeries that appear to have originated out of
the Philippines. The "story" being told is that the United
States shipped them to Philippine freedom fighters in the WW II
era to help with the war effort. Some "investors" have
brought them to us in so-called "Federal Reserve" metal
boxes, along with other related certificates, such as Global
Immunity (file size 92K, JPG file uploaded 10/26/01), FDIC
Insurance (file size 83K, JPG file uploaded 10/26/01), Gold
Bullion (file size 123K, JPG file uploaded 10/26/01), shipping
manifests and "gold" coins. These crude forgeries were
likely made by inserting images of $100 dollar bills (Ben Franklin),
$1,000 dollar bills (Grover Cleveland) and even $1 dollar bills
(George Washington) into a computer program, then altering the amounts
to read $100 million and $500 million, then adding coupons both
in English and Chinese script. Most were then printed on modern
color printers or copiers. These modern color printers or copiers
did not exist in 1934 when these bogus notes are alleged to have
been issued. The Treasury Department did not issue securities (bonds)
in $100 million or $500 million denominations during the time period
alleged in this fraud.
one variety of these "Federal Notes", please click on
the thumbnail image at left" (117K JPG File, uploaded 4/16/99).
To view two other varieties of these "Federal
Notes", please click
here (878K JPG File, uploaded 10/4/00) and here
(961K JPG File, uploaded 10/4/00).
The largest federal reserve note (currency) every
printed was $100,000 and was only used inside the banking system.
For more information on this currency item, please review the FAQ
opc/ opc0034.html "What was the largest currency denomination
US Secret Service Agent Displays Counterfeit Federal
Reserve Bonds in Manila. To view article click
here. (168K PDF File, uploaded 3/1/01)
U.S. v. Fareed Shabbar
On April 10, 2000, in Federal District Court for the
Middle District of Tennessee in Nashville, Mr. Shabbar was convicted
of violating 18 USC 514, the fictitious instruments statute. Mr.
Shabbar had attempted to secure funds to finance the negotiation
of several of these bogus federal notes. For any questions relating
to the prosecution of this case, please contact Asstistant United
States Attorney Trey Hester at 615-736-5151.
U.S. v. Edward Keith Howick
On April 14, 2000, in Federal District Court for the
District of Montana, Butte Division, Mr. Howick was convicted for
violations of 18 USC 514 and 18 USC 472. Mr. Howick had attempted
to pass, utter or present a 100 million and a 500 million bogus
federal note. For any questions relating to the prosecution of this
case, please contact Asstistant United States Attorney Kris A. McLean
U.S. v. Kevin Jackson- Newark, NJ, May 29,2001
The defendant was convicted of conspiring to transmit
a bogus 1934 $100M Federal Reserve Note in interstate commerce.
Prior to testifying, the defense agreed to stipulate that our testimony
would have been that these $100M notes were fraudulent. The jury
then returned a guilty verdict in one hour and twenty minutes, which
"De-facto" Treasury Securities
This term usually appears in offers to assign, rent
or lease Treasury securities to an offeree for a fee, for a certain
time period. These securities are bogus as the U.S. Treasury has
never issued any securities called "de-facto" Treasury
Philippine Victory Notes
There have been several inquiries regarding Philippine
Treasury Certificates of Deposit and their relationship to Philippine
Victory Notes. Philippine Treasury Certificates, Victory Series
66, commonly known as Philippine Victory Notes, were issued in 1944
by the Philippine Government. These currency notes were for use
only in the Philippines, which at the time was a dependency of the
United States, and were obligations of the Philippine Treasury.
The 500 Peso Philippine Victory Notes were demonetized
by the Philippine government on December 31, 1957, and were withdrawn
from circulation. At that point, other denominations of the Philippine
Victory Notes, Victory Series 66, were no longer regarded as legal
tender but could be exchanged or replaced at par, without charge,
for legal currency until July 30, 1967. After that date, Series
66 was considered demonetized. If these notes are presented to you
and purported to have current value today, it is a scam.