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CHECK FRAUD SCAM ALERT
LOCAL GOVERNMENT INVESTMENT POOL
August 2011

Important Notice to Consumers, Banks and Others – The Tennessee Treasury Department has become aware of a recent work-from-home scam utilizing the Internet classified website, Craigslist.com, and possibly other Internet sites, e-mails and other solicitations. The scam uses fraudulent checks that appear to be written by the Treasury Department’s Local Government Investment Pool with a Nashville, Tennessee address. The Tennessee Treasury Department does not issue or honor these fraudulent checks for payment. You can find further information on how to protect yourself from these scams and to report suspicious activity at: http://www.ic3.gov/media/2010/WorkAtHome.pdf


 

State CapitolThe LGIP presents a great tool for the investing strategies of Tennessee's local governmental entities. Many governments in the state have chosen to round out their investment arsenals with LGIP accounts. We offer a competitive rate with competitive service and multiple other benefits such as several levels of checks and balances to every transaction.

We provide a method for agencies to invest funds with same or next-day access at a healthier rate of return than the entity might receive elsewhere. The LGIP also allows multiple accounts under the same participant (up to 99) with individualized, detailed reports. Many local governments who explore the LGIP option find better liquidity, easier separation of funds, and superior returns.

Money market funds, like the State Pooled Investment Fund (SPIF), were designed to be safe places to invest cash. The investment goals of the SPIF are safety, liquidity, and return, in that order. Money market funds are designed to have a stable Net Asset Value (NAV) of $1.00, therefore if you invest a dollar, you should receive a dollar plus some earnings in return. These funds were designed to have no tolerance for risk.

 

INTRODUCTION

The State Treasurer operates the State Pooled Investment Fund of which the Local Government Investment Pool (LGIP) is a part. The legislation providing for the establishment of the LGIP (Tennessee Code Annotated, Title 9, Chapter 4, Part 7) authorizes investment in the LGIP for local governments and other political subdivisions.