FCA Info Memo - Uninsured Deposits, Revoked Banking License, etc.

Informational Memorandum
Subject:	Uninsured Deposits, Revoked Banking License, etc.
Date of Memorandum:	01/06/1997
Expiration Date:
Office:	OE
Signed By:	Smith, Roland
FCA Contact Person:	Holland, Tom
Contact Phone:	703-883-4484
List of Attachments:	OCC Alerts 96-40 96-41 & 96-44

January 6, 1997

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director /s/
Office of Examination

Subject: Memorandum Advising of Uninsured Deposits, Revoked Banking License, and Worthless Financial Instruments

The Farm Credit Administration (FCA) is distributing copies of three recent OCC Alerts issued by the Office of the Comptroller of the Currency. These documents contain information that may prevent you or your institution from suffering a financial loss (see attachments).

OCC Alert 96-40 identifies an entity with an offshore registration in Antigua, West Indies, that is soliciting deposits on the Internet and offering a high rate of interest. The OCC Alert reminds readers that such deposits are not protected by the Federal Deposit Insurance Corporation. OCC Alert 96-41 identifies an entity whose banking license has been revoked.

OCC Alert 96-44 warns that banks and other entities have been receiving official looking instruments, referred to as "Republic of Texas Warrants," that have no financial value. These instruments appear to be originated by Richard Lance McClaren, "Chief Ambassador and Consul General" of the so-called Republic of Texas, and contain the heading "Republic of Texas" and include a seal, Warrant Number, and state they are issued to "The Republic of Texas Trust."

Readers are reminded of similar warnings previously issued by the FCA. Bookletter 433-OE dated February 6, 1996, warned of apparently worthless "Certified Bankers Checks," supposedly redeemable at the local office of the U.S. Postmaster that were easily mistaken for similar checks issued by the U.S. Post Office. Bookletter 383-OE dated April 7, 1994, also warned institutions of unredeemable money orders and noted that some institutions had erroneously accepted payments of such money orders and suffered a loss.

This memorandum complements similar OCC Alerts and other information previously distributed by the FCA to Farm Credit System institutions and should be retained for reference should your institution receive information related to any of these entities. The OCC Alerts include contact information for reporting suspicious activity.

If you have questions regarding this document or similar documents issued previously, please call Jerry Erickson in the Office of Examination at (703) 883-4483 or Jane M.Virga, Office of General Counsel, at (703) 883-4071.

Attachments