SEC's ongoing prosecution of a Prime Bank fraud
The SEC is continuing to press contempt charges against Randall T. Treadwell in connection with the alleged Prime Bank Ponzi scheme known as "Learn Waterhouse".
The SEC does have a web-page which identifies the logical elements of a Prime Bank fraud, which optimistically describes "how a prime bank fraud works".
The sellers frequently tell potential investors that they have special access to programs that otherwise would be reserved for top financiers on Wall Street, or in London, Geneva or other world financial centers. Investors are also told that profits of 100% or more are possible with little risk.
On the face of this, it sounds absurd. What elements are in play here?
First, the very word "secret" has come to connote "secret and good". It also connotes "scarcity", which as we all "know" must be as a result of high demand.
Second, many individuals investing in what turns out to be a ponzi scheme fail to understand that of course some people will get paid - even indiivduals who have nothing to do with the scheme. That is how the scheme works - some people get paid and most do not. If you have any doubt which group you are in, then you are in the latter group. When you rob Peter to pay Pau, you can always count on Paul's support.
