WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) has issued letters demanding three companies and certain associated parties cease and desist from making false and misleading statements about FDIC deposit insurance.
The FDIC said it is demanding that PrizePool, Inc. (PrizePool), AmeriStar, LLC (AmeriStar), and HighLine Gold, LLC (HighLine Gold) take immediate corrective action to address these false or misleading statements.
“In the case of AmeriStar and HighLine Gold, the FDIC has reason to believe these companies are related entities sharing several of the same principals and the same physical address, and therefore, issued a joint letter to them,” the agency said.
The Allegations
The FDIC said that based upon the evidence it has collected, the companies and certain associated parties made false representations by:
- Stating or suggesting they are FDIC-insured or that certain uninsured financial products are insured by the FDIC
- Misusing the FDIC name or logo
- Misrepresenting the nature or extent of deposit insurance
- Failing to clearly identify the insured depository institutions with which they have a relationship for the placement of customer deposits and into which funds may be deposited.
‘Harming Consumers’
“The evidence suggests these misrepresentations are causing harm, or have the potential to cause harm, to consumers,” the FDIC said.
In the past, the issue of false claims of deposit insurance coverage is one that has occasionally also involved some providers, especially online, claiming to offer NCUSIF insurance, as well.
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