Evidently that pitch has been around for years. It's not really a scam, more a lure to get the "investor" into other much larger, less customer beneficial investments. They wouldn't keep doing it this long if it wasn't working, and technically legal.
Found this:
These investment companies DO NOT themselves provide the CDs. They basically limit the amount of deposits, and periods of time, so the advertised rate looks good, but the overall impact can be a whopping $50-$100 or so more than the market. These firms are paying that (adding it to the yield) to get you to come in to their shop and listen to all the products they want to sell you, such as annuities or life insurance products (all of which carry a 5% or higher immediate commission to them). So it's kinda like going to a presentation/seminar on a time-share condo to get a free steak dinner (value of about $10). YES - they are real, but is it worth your time and getting "the hard sell" treatment.
For the few extra dollars here, it is best to just avoid them and look toward the banking industry directly.
And another:
I work for First Financial Group and all the CD's are FDIC insured. This is not a scam, however with any promotion there are conditions. The banks we use limit the amount of the deposit or length of the offer. The banks use high rates to get new customers so you can not get the high rates twice from the same bank. That is why in the ads we are listed as CD locators, we will hunt for great rates all over and show you the best we find. You will get the rate in the paper and it will be insured.
As usual, if it sounds too good to be true...