For Immediate Release
March 21, 2024
BackedGold and AmeriStar, issued a joint press release in response to the recent communication from the Federal Deposit Insurance Corporation (FDIC) regarding demands for corrective action concerning alleged false and misleading statements about FDIC deposit insurance.First and foremost, both BackedGold and AmeriStar reaffirm their unwavering commitment to compliance with all regulatory standards and to maintaining the highest levels of transparency and integrity in our operations. Both company's take any allegations of misrepresentation seriously and are fully dedicated to rectifying any inaccuracies promptly.
President of AmeriStar, Eddie Britton commented directly, “AmeriStar is not a bank. We have never made any statements of such, and it is clearly disclosed in all of our materials, that we are not a bank nor FDIC insured. We provide investment products to accredited investors, that involve Certificates of Deposit that do carry F.D.I.C Insurance, because they are from F.D.I.C. Member banks. As we clearly explain, we do not sell Certificates of Deposit. We offer an investment product that is a Regulation D offering.”
AmeriStar and BackedGold believe that this press release by the FDIC was taken to correct the unfortunate rumors that both company's are banks, and carry insurance.
Chief Executive Officer Roderick Frientes of BackedGold also commented “Our digital platform is for accredited investors. Unfortunately we are limited to who we can allow to invest. It would be nice if every investor was allowed to participate, but that is just not the case. We get a lot of retail investor inquires that look at our offerings, see the words Certificate of Deposit and FDIC Insurance and think they get these rates from the banks. Thats just not the case, and that is from an investor not taking the time to read our products or offering what so ever.”
To combat this misleading information, AmeriStar and BackedGold has mandated some sweeping changes;
Both company's will no longer advertise the name of participating banks on their sites. FDIC Insurance mentions will also be removed. AmeriStar had stopped that practice months ago, and BackedGold will follow suit.
Mr. Britton commented “When we had the name of a bank on our site, we unfortunately would get some unaccredited investors who would just call the bank, and say Hey, I want a CD with 15% interest. How can I get it? Obviously thats impossible, and it was causing us more headaches than it was worth.”
Both company's have invested more thoroughly in investor accreditation checking systems.
Both company's have decided to close accounts of investors who are inactive or do not meet accreditation status.
It is important to understand, AmeriStar and BackedGold are not banks. They are both FINCEN Money Services Business's, that offer SEC Regulation D Investment Offerings to accredited investors. The terms of the investments are clearly explained in great detail on both sites, that combine a traditional Certificate of Deposit and Courtesy Deposit.
BackedGold and AmeriStar both believe that the statements the F.D.I.C has made will lead to more clarity to investors and allow for full transparency of what their products actually are, and what they are not.