Fake US bonds $20 billion in Italy

[bearice]

Italian authorities have confiscated $20 billion in counterfeit U.S. government bonds.

Authorities say the bonds were of a quality that theoretically could have defrauded financial institutions.

But a stop at a highway rest area where a group of Carabinieri military police were taking a break proved to be the undoing of the group.

A Carabinieri statement said officers did a routine search of the vehicles after the "suspicious" behaviour of the men and found "to their surprise" a briefcase with 40 bonds 0each valued at $500 million.

Officials said Wednesday that U.S. officials confirmed the bonds were counterefeit. The six men are under investigation for receiving stolen goods.

http://www.businessweek.com/ap/financialnews/D9L03L900.htm

 

[peilthetraveler]

Only $20 billion? Thats nothing compared to these guys caught with 134 billion in fake bonds.

http://www.thebigmoney.com/articles/explainer/2009/10/21/bond-fake-bond?page=full

Or this guy caught with $302 billion in fake bonds.

http://www.wsbtv.com/news/24764950/detail.html

Or the Grandaddy of all scams....

2.1 TRILLION in fake bonds.

http://abcnews.go.com/International/story?id=81469&page=1

So I dont know why a measly $20 billion even made the paper...

 

[ElCubano]

wasnt miami vice's Crocket ( don johnson ) invloved in one of these.

 

[sjfan]

I still have no idea what this means. US Treasury Bonds are not bearer bonds. They are all registered and not issued with a certificate or any such things; How do you counterfeit us treasury obligations??

Quote from bearice:


Authorities say the bonds were of a quality that theoretically could have defrauded financial institutions.
[/url]

 

[GTG]

I still have no idea what this means. US Treasury Bonds are not bearer bonds. They are all registered and not issued with a certificate or any such things; How do you counterfeit us treasury obligations??

I'm probably wrong on this, but I think that I remember reading once that the US Treasury used to issue bearer bonds, and discontinued the practice in the 80's, so in theory there could be some US Treasury Bearer Bonds still floating out there with a year or 2 left on them at this point.

 

[sjfan]

I believe they were all converted into electronics form a long while back. Maybe these guys are duping some sort of savings bond coupon that were issued, like you said, some very long time ago? I find that extremely unlikely.

Quote from GTG:

I'm probably wrong on this, but I think that I remember reading once that the US Treasury used to issue bearer bonds, and discontinued the practice in the 80's, so in theory there could be some US Treasury Bearer Bonds still floating out there with a year or 2 left on them at this point.

 

[nutmeg]

probably bought them on e bay.

 

[peilthetraveler]

I believe some of these people are using the bonds to secure financing on construction projects and things of that nature. I dont believe anyone is trying to get face value out of these things. Its alot easier to get someone to loan you a few hundred million dollars and do a no money down construction project if you show someone you have 1 billion in T-bonds.

 

[rcj]

Seems like this happened a yr or more ago?? Or maybe this is
anew incident ??

 

[sjfan]

Maybe.... but it doesn't take a lot of due diligence to figure out that no one would be able to show they held billions of treasury bonds this way; everything is electronic. You'd imagine someone lending millions would know this. but maybe not.

Quote from peilthetraveler:

Its alot easier to get someone to loan you a few hundred million dollars and do a no money down construction project if you show someone you have 1 billion in T-bonds.