Fake LTN Bonds Keep Fooling Foreign Investors

You’ve struck gold! Or at least that’s what you’re being told. A long-lost bond issued by the Brazilian government in the 1970s will make you rich with astronomical returns on the investment.

And welcome to the world of fake Brazilian public bonds.

For years, this scam has been making the rounds. The documents look official - stamped, signed, and full of legalese. You can see examples of them HERE. They promise massive payouts from so-called “historic” LTNs (Letras do Tesouro Nacional) allegedly backed by the federal government. But according to the Brazil’s National Treasury, these LTN bonds are pure fiction.

“There has never been ‘purple’, ‘green’, ‘blue’ or ‘diamond’ LTN bonds, with series ‘H, I, J, K... Z’ or with any other attribute of color or letter,” says the government. “The National Treasury does not and has never issued such documents.” And more importantly, no valid LTNs exist in paper form anymore. They were all redeemed years ago.

Legitimate bonds in Brazil are issued through public offerings carried out by the federal government. The Treasury currently lists five that are no longer being issued but still circulate in the market. You can check the list HERE.

If someone tries to sell you on an old LTN certificate with promises of massive returns, you might want to rethink the investment. And you certainly don’t want to pay them to “revalidate” or “dematerialize” them. No matter how convincing the pitch or how official the documents look, it’s simply not going to pay out.