ADVANCE FEE AND PRIME BANK INSTRUMENT FRAUDS
| DOI | https://doi.org/10.1108/eb024884 |
| Pages | 199-200 |
| Date | 01 February 1996 |
| Published date | 01 February 1996 |
| Author | Rowan Bosworth‐Davies |
| Subject Matter | Accounting & finance |
ADVANCE FEE AND PRIME BANK INSTRUMENT FRAUDS
Alistair
Walters
SWEET AND MAXWELL, 1995; ISBN 0421-546-00X; hardback; £78
A few years ago, I was instructed to
act in the defence of an ambitious but
remarkably naive assistant bank
manager who was being investigated
for the part he had played in facilitat-
ing a prime bank instrument fraud.
This poor chap had unwittingly
become the victim of a team of highly
professional, international bank
fraudsters who specialised in the cre-
ation of fraudulent bank paper. He
had been approached with offers of
substantial deposits to be made with
his bank, in return for which the
fraudsters wanted to be provided with
guarantee letters. Naturally, the
young manager was delighted to be
able to assist and he provided them
with every assistance. Just as they
were leaving the con men asked him
if he could provide them with a brief
letter setting out the terms of the
potential agreement and indicating
the conditions under which such
guarantees would be given.
Imagine his shock and chagrin
when six months later, exact replica
documents of the ones he had sup-
plied, found their way back to his
bank, purporting to be formal guar-
antees, having been used to collater-
alise various loan agreements in the
United States. He survived the subse-
quent prosecution, but lost his job
when his bank was sued for negli-
gence by the unhappy losers.
His story is an all too familiar one
these days as prime-bank instruments
and advance-free fraudsters continue
to weave their spells of riches beyond
the dreams of avarice to the gullible
and not-so gullible alike. Alistair
Walters' book has not been published
a minute too soon.
Mr Walters has provided a very
clear analysis of both kinds of fraud,
in language that is both clear and
concise, and avoids all the obvious
pitfalls which so many lawyers habit-
ually dig for themselves. Usefully, he
provides a guide to the personality
types who frequent this area of the
underground economy and high-
lights the functional techniques which
are used in various guises. His
examples, many of which have been
taken from real cases, are very valua-
ble because they identify the lan-
guage, jargon and presentation of
such instruments.
The book includes a series of fasci-
nating case studies, which would jus-
tify the purchase of the book for
these illustrations alone, but then
goes further and provides a valuable
section on criminal and civil jurisdic-
tional issues and a checklist of points
to watch.
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