Phony Certificates of Deposit(s) – South Florida Banking and Fraud Litigation and Arbitration Attorney

The purpose of this post is to raise investor awareness concerning phony Certificates of Deposits (CDs) promoted through internet advertising and “spoofed” websites – websites that mimic the actual sites of legitimate financial instructions. Investors should be extremely cautious when purchasing CDs from sites found only though internet searches. Please keep in mind that this information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, if you have any questions concerning the contents hereof, you should contact a qualified attorney.

“Spoofed” websites – often using URL addresses similar to those of legitimate firms’ websites, or using legitimate-sounding names and URLs – may be used to trick investors into buying bogus CDs. Spoofed websites selling fake CDs often have red flags of fraud. They may:

• Offer interest rates higher than you can find at any other financial institution, with no penalties for early withdrawals;
• Promote only CDs and no other financial products, such as banking or brokerage accounts, loans, or commercial banking services;
• Require high minimum deposits, often $200,000 or more;
• Direct potential investors to wire funds to an account located outside the U.S., or to a U.S.-based account that has a different name than the financial institution claiming to sell the CD;
• Claim that the spoofed financial institution is a Federal Deposit Insurance Corporation (FDIC) member and that deposits are FDIC-insured; and
• Identify “clearing partners” that they claim are registered with the SEC.

Be Skeptical and Ask Questions:

If you are considering an investment in CDs, conduct internet searches for the financial institution to see if you find any search results other than the website initially identified. Call the financial institution using a telephone number found somewhere other than the suspect website to determine the legitimacy of the investment opportunity.

If the website claims the CDs are FDIC insured, verify the financial institution by using the FDIC’s BankFind tool – https://research.fdic.gov/bankfind/ – or call the FDIC to verify at 877-ASKFDIC (877-275-3342). Make certain the name of the financial institution claiming to provide the CDs is exactly the same and not just similar to a firm verified by the FDIC.

If the website claims the CDs are offered by a credit union, verify the financial institution by using the National Credit Union Administration’s (NCUA) “Research a Credit Union” webpage – https://mapping.ncua.gov/ResearchCreditUnion.aspx – or call the NCUA’s Consumer Assistance Center at 800-755-1030.

If a website provides a name and a CRD number of a broker-dealer or an employee of a broker-dealer, use FINRA’s BrokerCheck to check whether the address provided in FINRA’s BrokerCheck matches the address provided on the website.

Contact Us:
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Boca Raton Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.