Notice to Members 97-24

"Limited Edition" Treasury Securities

The Department of the Treasury recently informed the NASD that there are certain foreign individuals and groups attempting to defraud entities by offering to sell and structure transactions in non-existent United States Treasury securities. Broker/dealers have been approached with a proposal to purchase and resell a fictitious instrument referred to as "Limited Edition" U.S. Treasury securities. As part of this scheme, broker/dealers and other entities are being sought to act as fiduciaries for the transactions.

Treasury staff confirmed with the NASD that there is no such security as a "Limited Edition" Treasury security.