Learn how PPP and prime bank scams work, from intake fees to SBLC leasing traps. Use law enforcement red flags and avoid guarantee exposure.
In scam circles, “PPP” and “prime bank” do not mean lawful private placements. They mean a recurring fraud format built around fake bank instruments, fake trading “platforms”, and fee extraction. The pitch is engineered to sound institutional, but the logic collapses the moment you ask for verifiable counterparties, regulated execution, and normal documentation.
“All ‘prime bank’ investment programs are fraudulent.”
“Neither these instruments, nor the markets on which they allegedly trade, exist.”
“Fraud actors are ... selling fictitious Standby Letters of Credit (SBLCs).”
Promoters rotate jargon, PDFs, and namedrops. The cash extraction pattern stays consistent. These are the most common phases.
You are told there is an “allocation”, “window”, or “mandate” and you must be “approved”. This is where they push urgency and exclusivity. It is also where they collect identity documents that can be misused.
The first real objective appears: a “program intake fee”, “compliance fee”, “attorney fee”, “bank charge”, or “due diligence fee”. Once paid, new fees appear. If you refuse, they threaten reputational damage or “blacklisting”.
They provide glossy term sheets, “proof of funds”, and letters that look official. They misuse acronyms and claim endorsement by banks, regulators, or international bodies. Real regulated counterparties can be verified. Scammers avoid verifiability.
You are told access to loans requires you to post an SBLC, a guarantee, or to “lease” an SBLC. This moves risk onto you while the “lender” stays uncommitted. The end state is simple: you paid fees and you carry exposure.
An SBLC is a bank undertaking. If your bank issues one, the bank takes risk on you. That is the entire point of the instrument. In scam structures, the promoter attempts to separate the guarantee from the funding. The “loan” is always conditional, vague, or routed through offshore entities that never produce a funded commitment.
Investors were told their money would “pay for bank charges to lease a standby letter of credit (SBLC)” to access loans and trading profits.
The practical risk: the guarantor pays real costs, faces real bank obligations, and receives no bankable funding agreement from a regulated lender. If there is a dispute, the promoter is gone, the documents are non enforceable, and the bank still expects repayment from its customer.
Do not negotiate. Do not argue about the “terms”. Verify identity and licensing first. If they refuse verifiable proof, stop engaging. If you already sent documents or money, preserve evidence and report it. These official pages provide the right language and reporting routes: U.S. TreasuryDirect prime bank fraud page , U.S. Treasury OIG prime bank fraud overview , and Investor.gov advance fee fraud alert.
If the underlying need is real, working capital, trade finance, asset-based lending, acquisition funding, or Commercial Real Estate capital, the path is underwriting, structure, and regulated execution. Start here: trade finance , structured trade finance , asset-based lending , business acquisition financing , Commercial Real Estate financing , and private credit financing.
No. A lawful private placement is a regulated securities concept. The “PPP” discussed here is the scam label used for platform trading and prime bank style fraud.
Fees are the revenue model. Once you pay, the “process” extends with new gates, new costs, and new invented requirements.
Be careful. SBLCs are bank undertakings used for credit and performance support. When someone pitches SBLC leasing as a path to guaranteed returns or instant loans, treat it as a high-risk fraud indicator and verify everything with regulated parties.
Do not issue a bank undertaking to an unknown beneficiary on the basis of promises. Funding commitments must be documented, enforceable, and provided by regulated counterparties.
We structure lender-ready files and place capital with regulated counterparties for real transactions. Start with an application and we revert with feasibility and next steps.
If you have a real transaction and you want regulated capital options, submit your file. We will revert with a feasibility view and a practical path to market.
Apply For A QuoteDisclaimer: This page is for general information only and does not constitute legal, tax, regulatory, investment, or credit advice. Financely is not a bank, broker-dealer, or asset manager. Any financing is provided by regulated counterparties under their own licenses, approvals, and documentation and is subject to eligibility, KYC, AML, sanctions screening, and credit decisions.
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Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
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