Scam Involving Fraudulent Bonded Promissory Notes (BPNs)
February 2010

The Federal Reserve Bank of New York has become aware of numerous attempts to present fraudulent bonded promissory notes which reference a fictitious bond account at the Federal Reserve Bank of New York. The fraudster claims to have a bond account in excess of $100,000,000 established at the Federal Reserve Bank of New York (or at another Federal Reserve Bank) upon which he or she can issue bonded promissory notes as forms of legal payment for debt. Sometimes the fraudulent bonded promissory notes are remitted as payment for debts owed by the fraudster issuing the bond, while in other cases the fraudulent bonded promissory notes are used in attempts to pay the debts of third parties. Fraudsters have attempted to use fraudulent bonded promissory notes to pay for various items including automobiles, mortgage payoffs and medical and veterinarian bills.

These documents are fraudulent and will not be honored if presented.

A promissory note is a form of debt similar to a loan or an IOU. An individual (investor) makes an agreement to loan money to a company in exchange for a fixed return from the company, usually principal plus annual interest. While some promissory notes are indeed legitimate, they are rarely available to the general public. If the promissory note claims to be payable through an account held at a Federal Reserve Bank, the note is fraudulent.

• How to Avoid a Promissory Note Scam
  Generally, agents selling promissory notes need to be licensed. You can verify whether the person trying to sell you a promissory note is licensed by contacting your state securities regulator: www.nasaa.org/QuickLinks/ContactYourRegulator.cfm
  
  
• Most investments involving promissory notes need to be registered with the SEC. You should verify whether the promissory note is registered or exempt from registration by contacting the SEC, www.sec.gov.
  
  
• The majority of legitimate promissory notes are not sold to the general public. If you are being contacted by phone by someone trying to sell you a promissory note, it is most likely a scam.
  
  
• If the return rate seems too good to be true, the note is likely fraudulent.
  
  
• Be wary of promises of “risk free” returns.

Sample Fraud ›› (jpg - 340 kb)

If you have reason to believe you have invested in a fraudulent promissory note, you should contact your local FBI office.

Marco Peter Kunkel/Brandy Kelvin Advance Fee Scam
September 2009

It has come to the attention of the New York Fed that there is a new advance fee scam being committed using the New York Fed name. An advance fee scam is a fraud that urges a target to send a specific sum of money to a person or entity up front in order to receive a larger amount of money. Many times the fraudster asks for the target’s personal information, including bank account information, in order to send this promised larger amount of money. Release of this personal information may facilitate identity theft.

The recent scam involves a fraudulent e-mail from persons purporting to be either employees or agents of the New York Fed, including Mr. Marco Peter Kunkel or Mrs. Brandy Kelvin. The e-mail informs the targets that an account has been opened in his or her name at the Federal Reserve Bank of New York and that funds have been deposited in this account. The e-mail instructs the targets to pay a surcharge in order to activate this account and access the funds that have been deposited in their name. The e-mail will sometimes provide a username and password for the target to use to access this fictitious account, as well as wiring instructions for the surcharges. The e-mail will sometimes include fraudulent Federal Reserve documents, including fictitious identification cards of employees. The fraudsters have even begun to use the names of actual Federal Reserve Bank of New York employees in this scam.

The e-mail addresses used in this scam include:

mr.marcopeterkunkel@nyfrbgovus.org marcopeterkunkelfedralreserve@yahoo.com marcopeterkunkelfedralreserve@google-mail.com
marcok39@gmail.com
mkmarcokunkel801@gmail.com marco.marcokunkel.kunkel36@gmail.com brandykelvin2007@google-mail.com
kelvinbrandy2008@google-mail.com
brandykelvin2009@google-mail.com mrs.brandykelvin@nyfrbgovus.org

These fraudsters have also created the following fraudulent website in an effort to spoof the official Federal Reserve Bank of New York site, and to facilitate their scam:

www.nyfrbgovus.org/

See Sample Scams:

Sample Fraud 1 ›› (jpg - 155 kb)
Sample Fraud 2 ›› (jpg - 177 kb)
Sample Fraud 3 ›› (jpg - 154 kb)
Sample Fraud 4 ›› (jpg - 838 kb)
Sample Fraud 5 ›› (jpg - 555 kb)

If you are contacted in an unsolicited e-mail claiming that you have funds on deposit with the Federal Reserve Bank of New York, or have information regarding this fraud please contact Kristin Sturm or Robert Amenta in the Investigations Group at the Federal Reserve Bank of New York. They can be reached at the following
e-mail address:report.fraud@ny.frb.org.

Scam Involving the Use of Actual Federal Reserve Bank of New York Employees’ Names in Unsolicited E-mails
April 2009

Please be alert to a fraudulent scam involving individuals who claim to be actual Federal Reserve Bank of New York employees in unsolicited e-mails to defraud the public. 

In most versions of the scam, the fraudster poses as a Federal Reserve Bank of New York employee and falsely claims that the individual contacted has millions of dollars on deposit with the Federal Reserve Bank of New York.  Then the fraudster tries to get the individual to pay a fee, sometimes $950, in order to obtain these (fictitious) funds.  The fee will be stolen by the fraudster, and no funds will be provided to person paying this fee.

Click to see various samples of this fraudulent scheme:

Sample Fraud 1 ›› (pdf - 1,235 kb)
Sample Fraud 2 ›› (pdf - 1,286 kb)
Sample Fraud 3 ›› (pdf - 203 kb)
Sample Fraud 4 ›› (pdf - 147 kb)
Sample Fraud 5 ›› (pdf - 630 kb)
Sample Fraud 6 ›› (pdf - 4,767 kb)

Details of this Fraud Scheme
In many instances, the fraudster claims that the (fictitious) funds were “with-held due to improper and un-official payment documentations, lack of proper verification documents from the beneficiary to ascertain the legality, source/origin and authenticity of these funds.”  The fraudster claims that their need for proper documentation will require the payment of a fee, which is then stolen by the fraudster.

These e-mails are part of an elaborate scam to lure the public into making payments to the scammer for fictitious documents that the scammer claims are necessary to release the (fictitious) funds. The fraudster often claims that to obtain payment of these funds, the individual must remit a “Subsidized Charge” fee, sometimes in the amount of $950, for a “Payment Documentation / Payment Confirmation” service. Other times the scammer asks for a fictitious “Tax Clearance Receipt” which allegedly “will officially enable and allow us officially to release your payment to you.”The fraudster usually requests that the funds be sent via Western Union or Money Gram. These systems allow the fraudster to pick up the fee in various jurisdictions around the world, even though the remitter believes that the funds are being picked up in New York by an employee of the Federal Reserve Bank of New York.

The fraudulent scheme includes multiple documents purportedly signed by various senior officials of the Federal Reserve Bank of New York. The e-mails usually contain sham e-mail addresses and phone numbers that are not assigned to the Federal Reserve Bank of New York. In some instances, these documents request personal information from the individuals receiving the e-mails, possibly for identity theft purposes. The Federal Reserve Bank of New York does not maintain accounts or funds on deposit for individuals, or non- financial institutions. The Federal Reserve Bank of New York will never send an e-mail asking for personal information.

If you are contacted in an unsolicited e-mail claiming that you have funds on deposit with the Federal Reserve Bank of New York, or have information regarding this fraud please contact Robert Amenta, Senior Special Investigator at the Federal Reserve Bank of New York. He can be reached at the following e-mail address:report.fraud@ny.frb.org

Scam Involving Fraudulent Checks Purporting to be From a University of Illinois Account at the Federal Reserve Bank of New York
March 2009

The Federal Reserve Bank of New York has recently become aware of a large number of fraudulent checks presented for processing through the Federal Reserve system. The checks purport to be from the University of Illinois and bear a Tampa, Florida address, rather than an Illinois address. These sham checks claim to be drawn on a University of Illinois account allegedly maintained at the Federal Reserve Bank of New York, routing number 021001208.

These sham checks are usually made out to individuals in the United States in amounts between $3,500 and $4,800. It appears that these checks originate from overseas. In some instances the checks are received by individuals trying to sell items on eBay or craigslist. In those instances, the checks received by the sellers are in amounts exceeding the cost of the goods, with the "Purchaser" requesting that the seller remit the overage back to the buyer, less a small fee for their inconvenience. In other instances, "new employees" are solicited to engage in check cashing activities, keeping a fee and remitting the remainder via a money remitter.

These checks are fraudulent. The Federal Reserve Bank of New York does not offer commercial account services of this type.

Click here to see a sample of a fraudulent check.

If you receive a check purporting to be from a University of Illinois account at the Federal Reserve Bank of New York or have information regarding this fraud please contact Robert Amenta, Senior Special Investigator at the Federal Reserve Bank of New York.

Federal Reserve Board alerts public to instances of questionable solicitations directed at consumers
November 2008

The Federal Reserve Board on November 4 alerted the public to instances of questionable solicitations directed at consumers. These solicitations promise consumers access to personal loans through a nonexistent Federal Reserve lending program.

Under this fraudulent scheme, targeted individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers. Consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, in order to receive the purported loan. The Federal Reserve is advising consumers that it has no involvement in these solicitations and does not directly sponsor consumer lending programs. The matter has been referred to the appropriate authorities for action.

Consumers are strongly urged to verify the legitimacy of potential service providers before entering into a business transaction. Individuals seeking personal finance options are encouraged to do business only with reputable lenders and to shop around for the most favorable loan terms.

Board of Governors press release ››

Scam Involving Yohannes Riyadi and/or Wilfredo Saurin
November 2007

The Federal Reserve is aware of a fraudulent scam involving individuals using the names Yohannes Riyadi and/or Wilfredo Saurin, or persons claiming to be representatives of these two men. In a typical version of this scam, Mr. Riyadi and/or his delegates falsely claim that they have on deposit with the Federal Reserve Bank of New York several U.S. Treasury Checks issued to Mr. Riyadi amounting to billions of dollars.

The Federal Reserve Bank of New York has been contacted by several brokers and financial institutions worldwide inquiring about the validity of this fraudulent account documentation, which is being offered as collateral for lines of credit or other types of asset based financing. The fraudulent scheme includes multiple documents which purport to have the signatures of various Federal Reserve officials, including Chairman Ben Bernanke.

In some instances, individuals involved in this fraudulent scheme claim to have met with Federal Reserve officials and claim to have verified that the alleged account is in order. We have also learned that the fraud may include the purchase of certain documents by the introducing brokers.

If you have information regarding this fraud please contact either Robert Amenta, Special Investigator at the Federal Reserve Bank of New York, or Erik Rosenblatt, Senior Special Agent at the Department of Homeland Security, Immigration and Customs Enforcement.

Discovered 1930s Notes and Bonds
July 2005

The Federal Reserve is aware of several scams involving high denomination Federal Reserve notes and bonds, often in denominations of 100 million or 500 million dollars, dating back to the 1930s, usually 1934. In each of these schemes, fraudulent instruments are claimed to be part of a long-lost supply of recently discovered Federal Reserve notes or bonds.

Fraudsters often falsely claim that the purported Federal Reserve notes or bonds that they hold are somehow very special and are not known to the public because they are so secret. Fraudsters have attempted to sell these worthless instruments, or to redeem or exchange them at banks and other financial institutions, or to secure loans or obtain lines of credit using the fictitious instruments as collateral.

The Federal Reserve has never issued any bonds or notes with coupons attached. The Federal Reserve Bank of New York is not aware of any currency or debt stockpile of large denomination Federal Reserve notes from the 1930s and warns that any institution that pays out on such a claim does so at its own risk.

It should also be noted that the largest denomination of currency ever printed by the Bureau of Engraving and Printing was the $100,000 Series 1934 Gold Certificate featuring the portrait of President Wilson. These notes were printed from December 18, 1934, through January 9, 1935, and were issued by the Treasurer of the United States to Federal Reserve Banks only against an equal amount of gold bullion held by the Treasury Department. The notes were used only for official transactions between Federal Reserve Banks and were not circulated among the general public.

Fraudulent Federal Reserve Note Schemes
SR 03-14, July 16, 2003

Below we have provided images of various fraudulent Federal Reserve Notes or Bonds

Sample Fraud 1 ›› (jpg - 177 kb)
Sample Fraud 2 ›› (jpg - 225 kb)
Sample Fraud 3 ›› (jpg - 177 kb)
Sample Fraud 4 ›› (jpg - 243 kb)
Sample Fraud 5 ›› (jpg - 251 kb)
Sample Fraud 6 ›› (jpg - 259 kb)
Sample Fraud 7 ›› (jpg - 111 kb)
Sample Fraud 8 ›› (jpg - 155 kb)

For more information about the legitimate Federal Reserve note denominations, visit the Bureau of Engraving and Printing's website, www.moneyfactory.com.

Private Placement Programs/High Yield Investment Programs
July 2005

So-called high yield investment programs or “capital enhancement programs” purport to be highly secretive, very lucrative programs of investment in various financial instruments, such as medium term notes, standby letters of credit and "prime bank" guarantees. These fraudulent “programs” are presented as legitimate investment vehicles being offered by "invitation only" by the "U.S. Federal Reserve Bank."

Scam artists claim that proceeds from the programs are slated for investment, often abroad. Fictitious letters are often used to convince targets that the programs are legitimate.

Targets are told that in order to participate they must provide the scam artist with verification of large (usually multi-million dollar) deposits in a personal bank account, and to provide an enlarged color copy of the signature page of the target’s passport. Scam artists give “guarantees,” frequently in writing, that the money will remain in the target’s account, under her sole control, throughout the term of the program.

The purpose of these schemes is to obtain enough information about the target to allow the scam artist to impersonate the target and take the money from the designated account.

Additional material and information that may be requested include a color photo, a reproducible copy of the target’s signature and other key personal information, including a passport number, a personal bank account number, routing number and SWIFT code.

Employees of the Federal Reserve Bank of New York and the Federal Reserve System do not offer investments to the general public. Furthermore, the Federal Reserve does not use any agents that are authorized to deal with the general public.

"Prime Bank" and Other Financial Instrument Fraud Schemes
SR 02-13, May 20, 2002

Testimony of Herbert A. Biern: "Prime Bank" Schemes
The Deputy Associate Director of Banking Supervision and Regulation before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
July 17, 1996

Development Investment Programs
January 2003

Numerous investment scams purport to "enhance assets" for project development. These scams often invoke the name of the Federal Reserve or cite Federal Reserve research.

The scam artist tries to convince a would-be investor to place his funds with an asset manager, who will enhance the investment while funding various humanitarian projects, such as building bridges in developing countries.

Sample Fraud ›› (jpg - 119 kb)

Federal Trading Program
July 2005

In this scam, a target is told that the Federal Reserve uses a “Federal Trading Program” to enhance the U.S. economy.

According to the scam artist’s explanatory documents, participation in the program requires proving ownership of unencumbered assets worth $100 million or more. The target is told that these assets must then be transferred to a "safe keeping account," conveniently at the target’s bank, where the target will have "complete access to [his/her] funds at all times."

Once the money is in this account, the Federal Reserve purportedly assigns a "federal trading number" so that the number of trades can be monitored. The Federal Reserve also purportedly will guarantee, in writing, the rate of return.

The purpose of the scheme is to obtain enough initial information about the target to allow the scam artist to impersonate him and take the money from the designated account.

Sample Fraud ››

New York Fed Archived Fraud Alerts ››