Machu manila forex investimento fraude

Investimentos em fraude de investimento em câmbio estrangeiros no mercado de câmbio (FOREX) é uma promoção fraudulenta relativamente nova que está sendo desenvolvida e vendida em todo o país. Você é levado a acreditar que você está investindo em um mercado de futuros de moeda que é altamente regulamentado e um mercado negociado por grandes bancos e instituições financeiras cujas comissões para negócios não são mais do que dois ou três pontos. O mercado de quotespot de moeda estrangeira é comumente referido como o quotForexquot. Os contratos de moeda estrangeira podem ser negociados legitimamente em uma bolsa de futuros reconhecida ou no mercado quotinterbank, o que geralmente envolve operações entre grandes instituições, como bancos e empresas, em vez de clientes individuais ou de varejo. As empresas de comércio de moedas fraudulentas muitas vezes dizem aos clientes que sua negociação é feita no quotinterbank marketquot em seu nome. Com um depósito de 10.000, o máximo que você pode perder é de 200 a 250 por dia. Muitos comerciantes de moeda pedem aos clientes que lhes dê dinheiro conhecido como quotmargin, muitas vezes somam no intervalo de 1.000 a 5.000. Esses valores, que são relativamente pequenos nos mercados de câmbio, realmente controlam valores de negociação muito maiores em dólares. A negociação de margem pode torná-lo responsável por perdas de dólares que excedem em muito o valor de margem que você depositou. Você assume apenas tanto risco quanto parece. Qualquer tipo de negociação alavancada permite que os investidores especulem com uma margem de caixa de menos de 5 do preço em dólares norte-americanos para moedas estrangeiras, como a marca alemã, o franco suiço, a libra britânica e a Yen japonês. Quando o mercado de ações se mova para cima ou para baixo, no mercado de divisas, você sempre ganhará lucros. As vítimas desses promotores fraudulentos estão realmente sendo vendidos em um mercado em moeda estrangeira totalmente desregulamentado e não garante que o promotor Garantiu a posição para a frente na moeda negociada. Você também não está ciente de que você pagará uma comissão de 50 em cada negócio e que não tem chance de obter lucros ou de recuperar seu investimento. Esse tipo de terminologia de fraude de investimento é freqüentemente usado junto com Prime Bank Schemes e fundamentado pelos pagamentos da Ponzi. Um grupo, Forex Investment, recrutou comerciantes quotprofissionais de moeda que realmente tiveram formação insuficiente e experiência na negociação forex, deixando a maioria das contas de investidores sofrendo perdas substanciais, cerca de três em cada quatro dólares investidos no programa. Para obter mais informações sobre este tipo de investimento, certifique-se de investigar os bancos de dados da National Futures Association e da CFTC. As empresas farão solicitações de vendas enganosas, enganosas e de alta pressão. Muitas vezes, os diretores não conseguem supervisionar diligentemente funcionários e agentes na condução de suas atividades de futuros de commodities. Eles fazem solicitações de vendas enganosas, enganosas e desequilibradas churn contas de clientes e não conseguem manter padrões elevados de honra comercial e princípios justos e equitativos de comércio. Solicitando que as pessoas invistam sem serem registradas. Participe em práticas fraudulentas de solicitação. Eles cometem fraude em conexão com a compra e venda de futuros de commodities e contratos de opções para contas de clientes, fazendo declarações ou omissões falsas, enganosas e enganosas de fatos relevantes. Eles cometem fraude ao agitar as contas dos clientes de forma generalizada e generalizada para gerar comissões, sem considerar o objetivo de negociação de clientes que fazem declarações fraudulentas sobre, entre outras coisas, a probabilidade de lucros na negociação de futuros de commodities e contratos de opções, o risco de perda , E a experiência e sucesso comercial de sua empresa e vendedores. Faça comunicação com o público que funciona como uma fraude ou engano. Eles, direta ou indiretamente (1) violam, ajudam ou facilitam ou induzem, direta ou indiretamente, a violação das seções 4b (a) (i), 4b (a) (iii) e 4c (b) da Lei e as seções 33.7 (f ) E 33.10 dos regulamentos da CFTCS envolvendo trapaças ou fraudadores ou tentando fazê-lo, ou deliberadamente enganar ou tentar fazê-lo em relação a qualquer ordem ou contrato de garantia de mercadoria, e (ii) violar a Seção 166.3 dos regulamentos CFTCS ao não supervisionar diligentemente O manuseio de contas de commodities. Eles não conseguem provar por provas claras e convincentes de que seu registro não representaria nenhum risco substancial para o público. Eles se envolvem em atos e práticas que violam a Lei do Mercado de Mercadorias e os regulamentos da CFTC. Eles fazem declarações falsas em seus documentos de registro arquivados na CFTC ao não registrar os diretores da empresa devido, em parte, ao seu interesse financeiro de controle na empresa. Eles não supervisionam diligentemente o tratamento de futuros de commodities de clientes e contas de opções de commodities ao não monitorar as solicitações de vendas feitas por seus vendedores e instruindo seus vendedores a deturpar fatos materiais para induzir os clientes a se engajarem em práticas comerciais destinadas a maximizar as comissões. Os funcionários da empresa, sem admitir ou negar quaisquer alegações, geralmente concordam com a entrada de um mandado de injunção permanente, concluindo que sua empresa violou as disposições anti-fraude dos regulamentos da CEA e da CFTC e impedi-la permanentemente de tais violações. Então, eles simplesmente limpam a lousa e começam uma nova empresa. Os tribunais geralmente encontram uma conduta fraudulenta questestistica, intencional e generalizada em relação a violações da lei e dos regulamentos da CFTC durante um longo período de tempo. As práticas de vendas inadequadas continuam frequentemente mesmo após a apresentação de ações com a aprovação dos diretores e participação ativa. Eles violam a Regra de Conformidade NFA 2-29 (A) (2) empregando uma abordagem de alta pressão com o público. As falsas declarações geralmente incluem: a probabilidade de lucro e a possibilidade de perda nas opções de commodities, a aplicabilidade e a importância da declaração de divulgação de risco exigida pelos regulamentos da Comissão, a experiência e a reputação de suas empresas na indústria de commodities, sua taxa de sucesso na negociação de opções de commodities, E a existência de um departamento de pesquisa interno e uma equipe de analistas. Eles se envolvem sistematicamente em táticas de vendas de alta pressão, típicas de uma operação de sala de caldeiras, e rotineiramente fazem declarações falsas ou enganosas ao solicitar clientes. Eles fornecem pouco treinamento para seus APs além de aprimorar técnicas de vendas de alta pressão. Eles incentivam seus vendedores a maximizar as comissões pressionando e convencendo seus clientes, através de técnicas de vendas de alta pressão e fraudulentas, para comprar opções baratas e significativamente fora do dinheiro que raramente eram lucrativas para o cliente após as comissões. Eles normalmente cobram aos clientes uma comissão de 175 por opção para comprar uma opção com uma taxa de comissão de 75 para compensar uma transação de opção. O principal objetivo da operação de vendas é maximizar a receita da comissão, maximizando o número de opções compradas pelos clientes e deturpando o potencial de lucro das opções compradas para os clientes. Numerosas contas de opções continham transações em que o índice de comissão para o prêmio excedia 100% e que a maioria dos clientes pagava entre 40% e 60% de seus fundos de investimento para comissões. Eles incentivam tais altas comissões por executivos de contas financeiramente gratificantes baseados apenas no volume de opções compradas e desencorajando ou proibindo a compra de opções mais caras. Eles cumprem seu objetivo de maximizar a receita da comissão, encorajando suas APs a deturpar a rentabilidade das opções comercializadas por eles e deturpar o impacto da estrutura da comissão sobre o potencial de lucro das opções comercializadas para os clientes. Por exemplo, uma queixa alegou que, ao longo de um período de 3 12 anos, uma empresa negociava mais de 2.800 contas de clientes e que mais de 90 por cento desses clientes perderam o total ou substancialmente todo o seu dinheiro, enquanto a empresa cobrava 12,8 milhões em comissões. Essa queixa também alegou que, em apenas cinco meses, a empresa possuía 1.126 contas de clientes ativamente negociadas, e essas contas apresentaram uma perda líquida agregada de cerca de 5,5 milhões e pagaram comissões totais de aproximadamente 2,6 milhões, o que representou 48% das perdas líquidas . Outra queixa CFTC alega que, em um período de doze meses, uma empresa administrava aproximadamente 988 contas de clientes, que geraram 3,16 milhões de comissões, enquanto os clientes perderam mais de 7 milhões. Das contas de clientes tratadas nesse período, 97% perderam todo ou quase todo o seu patrimônio. Por um período de cinco meses, eles administraram aproximadamente 1.019 contas, o que gerou 2,2 milhões em comissões, mas resultou em 83% dos seus clientes perdendo o total ou quase todo o seu patrimônio em um valor de 5,2 milhões. Os seus comerciais de rádio funcionam como uma fraude e engano e são criados e transmitidos com total desrespeito pela verdade. Na direção dos diretores, as empresas se envolvem em um curso de conduta deliberado para defraudar e enganar os clientes. Vítimas de fraude em moeda estrangeira que representam clientes e potenciais clientes: - que eles são garantidos para obter lucro como resultado de um investimento em opções de commodities, - que as opções de negociação de commodities são praticamente livres de risco e - que documentos de divulgação requerem Pelo regulamento CFTC são insignificantes ou de pouca importância, ou palavras para esse efeito. Omitando informar clientes e potenciais clientes: - que um aumento sazonal da demanda por uma mercadoria específica, como o óleo de aquecimento e a gasolina sem chumbo, por si só, não resultará necessariamente no aumento do valor da opção na mercadoria especificada, - as tendências passadas dos preços de futuros em commodities específicas não prevêem necessariamente a rentabilidade atual das opções sobre os contratos de futuros sobre essas commodities, - as notícias do mercado atualmente conhecidas não significam necessariamente que um cliente ganhará dinheiro negociando através delas como o mercado atualmente conhecido As notícias geralmente são já incluídas no preço do futuro subjacente, bem como o valor da opção -, exceto, possivelmente, para opções no mercado monetário, o aumento no preço do contrato de futuros subjacentes não se correlaciona normalmente com um valor de opção, Relação de um a um com um aumento no preço de uma opção nesse contrato de futuros, - que as ordens de stop loss nem sempre são efetivas para limitar o risco de perda, - a diversificação da opção As posições de íon não limitam necessariamente o risco de perda ou aumentam o potencial de lucro para cada posição de opção comprada e - que, em determinadas condições de mercado, um cliente pode achar difícil ou impossível liquidar uma posição, uma vez que as condições de mercado na troca onde a ordem É colocado pode tornar impossível executar uma liquidação da posição. Eles não conseguem obter informações do cliente de forma adequada. Eles não conseguem manter a quantidade de capital líquido exigida pelos regulamentos da Comissão, não notificam a Comissão de tais e faltam em manter livros e registros atuais. Algumas empresas forex fraudulentas solicitam aos clientes que troquem em uma estratégia de opções conhecida como quotbutterfly spreadsquot consciente do efeito consistentemente negativo que a estratégia tem sobre a capacidade dos clientes de ganhar dinheiro no longo prazo. Eles fraudam seus clientes colocando ordens de compra e venda equivalentes para contratos de futuros em bolsas de futuros dos EUA. Em seguida, atribui negócios a contas particulares para criar um padrão desejado de lucros e perdas. Eles fazem pedidos para comprar e vender as mesmas quantidades do mesmo contrato a preços idênticos ou quase idênticos. Essas negociações geralmente são compensadas por outra empresa, como negociações diárias na câmbio, mas estão, no entanto, listadas como quotopenquot em subcontas separadas mantidas em um nome da empresa. Eles então emitiram declarações de negociação que falsamente relataram essas negociações do dia fechado como permanecendo aberto. A única empresa usa essas declarações para reportar falsamente lucros ou perdas aos clientes por meio de correspondência de posições longas e curtas das várias subcontas e falsamente reportando aos clientes que tais operações foram mutuamente compensadas. Eles falsamente e enganosmente confirmam a execução de certas transações fraudulentas, sugerindo que as compras e vendas listadas lado a lado na confirmação são mutuamente compensadas, quando, de fato, são negociações não relacionadas. Eles compram para contas de clientes, a maioria das quais eram discricionárias, posições de opção de propagação de borboleta, para as quais as empresas avaliam uma taxa de 180 por opção. Os spreads de borboleta consistem em quatro puts ou chamadas (duas compras e duas vendas), resultando em quatro comissões para cada posição de opção de borboleta, ou 720 por spread. A comissão 720 é adicional a 12% do patrimônio líquido, taxa inicial cobrada. Juntamente com a estrutura da comissão, eles também instituem uma política de minimizar a quantidade de dinheiro do cliente comprometida com o mercado como premium comprando posições de quotout-of-the-moneyquot menos caras. A estratégia de negociação e a estrutura de comissão da borboleta foram usadas para substituir uma taxa de cobrança inicialmente cobrada de 40% e uma comissão de opção de 60 por turnê depois que os tribunais alemães observavam com desfavor em grandes taxas de cobrança cobradas pelos corretores e estavam concedendo danos aos clientes reclamantes . Isso reduziu a taxa inicial para o intervalo de 12 a 13 por cento, triplicou a comissão por opção para 180, e permitiu que eles começassem a comercializar spreads de borboleta para suas contas de clientes, que eram principalmente discricionárias. A estratégia de negociação fraudulenta torna praticamente impossível que os clientes ganhem lucros em seus investimentos, dada a estrutura da comissão e a estratégia de negociação empregada. Na verdade, quase todos os negócios de propagação de borboleta expiraram sem valor, ou foram exercidos e atribuídos por um resultado financeiro de zero. As perdas totais constituídas por comissões e prêmios por 339 clientes em um caso foram de aproximadamente 5,6 milhões, dos quais aproximadamente 4,8 milhões, ou 86%, foram atribuídos a comissões (excluindo a taxa de 12% deduzida). 0998 - A SEC apresentou uma queixa e obteve alívio de emergência envolvendo um Ft. Empresa de Lauderdale, International Capital Management. Inc. (ICM) que solicitou aos investidores que reivindicassem que eles lucrariam com seu programa de câmbio de moeda estrangeira. De acordo com a queixa, a ICM usou táticas de vendas de telemarketing quotboiler-roomquot de alta pressão para aumentar cerca de 18 milhões de mais de 1600 investidores de outubro de 1997 a início de setembro de 1998. Eles disseram aos investidores que poderiam obter retornos de 3-6 por mês e enviados falsos Declarações de conta mensais que mostraram lucros consistentes. A ICM também disse aos investidores que 80 de fundos de investidores seriam mantidos em uma conta bancária e os 20 restantes, que seriam usados ​​no programa de negociação de moeda estrangeira de ICMs, seriam protegidos de perdas significativas por seu suposto uso de uma ordem de quottop-lossquot em cada comércio. Todas essas representações foram falsas, na medida em que a negociação em moeda estrangeira gerou uma perda líquida para os investidores, a ICM não manteve 80 de fundos de investidores em contas bancárias, nem utilizou ordens de quotestop-lossquot em todas as negociações. A reivindicação da SEC também denominada WorldCorp Traders amp Co. Inc. (WorldCorp) como um réu de alívio, alegando que a ICM havia transferido pelo menos 10 milhões para a WorldCorp. Que usou pelo menos alguns desses fundos para negociar em moedas estrangeiras. A SEC congelou todos os ativos de ICMs e os ativos da WorldCorp fornecidos pela ICM. A ICM aceitou uma injunção permanente contra futuras violações das disposições antifraude das leis federais de valores mobiliários e consentiu na nomeação de um destinatário. O receptor recuperou aproximadamente 5,2 milhões e fez uma distribuição inicial para mais de 1.600 investidores e credores de quase 3,3 milhões, representando 19,6 de suas reivindicações, e continua a perseguir ações contra outros réus. Em 6 de julho de 2001, Jared DArgenio, que se declarou culpado por uma contagem de conspiração para cometer fraudes por correio e fraude por fio, enfrenta uma pena máxima de cinco anos na prisão federal. Mais tarde, Nelson N. Schembari se declarou culpado por uma contagem de conspiração para cometer fraudes por correio e fraude por fio e tem um prazo máximo de cinco anos. Ken Tripoli se declarou culpado por uma contagem de conspiração para cometer fraudes por correio e fraude por fio e uma contagem de lavagem de dinheiro e enfrenta uma sentença máxima de vinte anos. Larry Tripoli se declarou culpado por uma contagem de conspiração para cometer fraudes por correio e fraudes por fio e enfrenta uma pena máxima de cinco anos. Ação Civil No.98-7062-CIV - DIMITROULEAS Um esquema similar de troca de moeda estrangeira, Unique Financial Concepts. Inc. também foi processada pela SEC. 0999 - Anthony Baldwin e Global Currency Management. Inc. alegadamente haviam arrecadado fraudulentamente mais de 1 milhão de investidores que acreditaram em seu material promocional que afirmou ter um registro notável e reconhecido de retornos consistentemente rentáveis, com uma média de quase 5 meses, em sua negociação em moeda estrangeira. Reassurado por falsas declarações de contas mensais que descrevem o investimento como seguro e lucrativo, as vítimas desconheciam que ele já havia perdido praticamente todo o seu dinheiro na negociação apesar, ou talvez por causa de sua experiência anterior com a International Capital Management. (Veja acima) Ele concordou com a liminar da SEC, mas não foi obrigado a restituir devido a sua incapacidade demonstrada de pagar. Algumas operações atuais estão usando os nomes das empresas Salmon Chase International, Inc. Gibson Reed e First Forex Holding Corporation. Em 1º de janeiro de 2002, os países europeus começaram a usar o novo Euro. Nunca antes, tantos países com economias tão poderosas se uniram para usar uma moeda única. Obtenha seu histórico agora. Gostaríamos de enviar-lhe um euro LIVRE e um relatório LIVRE sobre a moeda mundial. Basta visitar o nosso site para solicitar o seu relatório Euro e Euro: Além do nosso relatório de moeda, você pode receber o nosso PACOTE DE INVESTIMENTO GRATUITO: Saiba como 10.000 em opções alavancarão 1.000.000 em Euro Currency. Isso significa que mesmo um pequeno movimento no mercado tem enorme potencial de lucro. Se você tem mais de 18 anos e tem algum capital de risco, é importante que você descubra como o euro mudará o mundo econômico e como você pode beneficiar 10.000 investimentos mínimos Investir em opções de moedas Forex é especulativo e inclui um alto grau de risco. Os investidores podem e perdem dinheiro. 1002 - EMF HOLDINGS, INC., Uma empresa de investimento em Cebu e Manila nas Filipinas e Hong Kong (com planos para expandir para Cingapura e Japão) é especializada em negociação de moeda (iene em relação ao dólar), embora também mantenha diferentes economias e Contas correntes em dólares e pesos em vários bancos internacionais. Embora a empresa seja pequena, EDGAR FIGER, o proprietário, diz ter uma grande experiência na negociação e, embora pareça possuir 80 da empresa, por algum motivo, seu nome não aparece em nenhum dos documentos de registro, especialmente Com a SEC lá. Os investidores parecem se tornar credores que emprestam o dinheiro da empresa com uma promessa de 20 retornos a cada 30 dias. Os comerciantes devem acumular fundos emprestados suficientes para atingir o tamanho do contrato em ienes ou dólares, a fim de fazer cota antes de entrar na folha de pagamento. EMF Holdings Inc. Fedman Bldg, Salcedo St. Makati Cidade 802-A Keppel Tower Cebu Business Park, Cebu City, Filipinas EMF Investment Ltd Unit 1808 One International Finance Center, HK EMF HOLDINGS, INC. RRN20020726083651362 EMF HOLDINGS, INC. RRN20020726085816947 EMF MULTI - Um júri federal condenou dois homens de San Diego por acusações de falhas de correio e fio relacionadas a um aparente esquema de Ponzi, o par operado fora dos escritórios de La Jolla. William F. McCray e Paul Yates foram indiciados em agosto de 2000 por acusações de que atraíram o público para investir 30 milhões em International Forex e Earthwise International. Duas empresas que supostamente negociavam moeda estrangeira. Os promotores disseram que os dois clientes solicitados com reivindicações fraudulentas de rendimentos anuais elevados nessas contas de negociação de moeda e falsamente declararam aos investidores que seus fundos estavam segurados e mantidos em confiança com um banco. Além disso, os promotores disseram que disseram às vítimas que investiram que suas contas estavam ganhando retornos positivos substanciais, quando na verdade eles estavam sendo pagos com dinheiro novo investidor. Os promotores disseram que McCray também sipohonou 5,8 milhões em dinheiro para investidores, colocando-o em uma conta bancária da Bermuda e usando-o para comprar um condomínio e um carro esporte de luxo. Yates foi condenado por 12 acusações de fraude postal e seis acusações de fraude por fio. Ele enfrenta até 90 anos de prisão e multas de 4,5 milhões, disseram os promotores. McCray foi condenado por cinco acusações de lavagem de dinheiro, duas acusações de arquivamento de uma declaração de imposto falsa e uma contagem de conspiração para evadir impostos por ocultar mais de 1 milhão de renda do Internal Revenue Service ao longo de três anos. Ele também foi considerado culpado de quatro acusações de perjúrio por seu depoimento em processos de falência para o International Forex, no qual ele negou que a empresa estivesse relacionada com o Earthwise International. McCray enfrenta uma sentença máxima de 101 anos de prisão e multas de 10,5 bilhões, disseram os promotores. A sentença para o par está agendada para fevereiro. O júri também descobriu que 5,8 milhões de McCray conectados ao banco das Bermudas e o carro eram ativos relacionados com os encargos de lavagem de dinheiro. Os promotores disseram que esta descoberta pode levar à sua confiscação ao governo dos EUA. Um terceiro homem acusado do esquema, Tony D. Ortega. Declarou-se culpado no início deste ano de acusações de conspiração para evadir impostos. Ele está agendado para ser condenado no próximo mês. Dubai Currency Trading Scam Bust 0207 - (Gulf News) Dubai: A Autoridade de Serviços Financeiros do Dubai (DFSA) disse na quinta-feira que quebrou um golpe de moeda global. A fraude convidou os investidores na Austrália e Cingapura a colocar seu dinheiro em entidades fictícias que alegaram estar no Centro Financeiro Internacional do Dubai (DIFC). Um suposto funcionário, que atuou com potenciais investidores usando um número de telefone dos Emirados Árabes Unidos, foi preso em Dubai. Pelo menos seis vítimas de fraude entraram em contato com o regulador DIFC, levando a uma investigação de quatro semanas. No entanto, sabemos que cerca de 600 mil pessoas passaram por uma conta bancária criada por esses fraudadores na Malásia, disse o presidente-executivo da DFSA, David Knott. A sondagem foi realizada pela DFSA e com a Emirates Securities and Commodities Authority e envolveu reguladores de mercado da Malásia, Grã-Bretanha, EUA e Cingapura. A raquete operava três entidades fictícias denominadas Dubai Options Exchange, o Emirates Eours Futures Board e Cambridge Capital Trading. Todos alegaram oferecer serviços dentro do DIFC. Os fraudadores usaram um provedor de serviços de internet baseado nos EUA. Os investidores australianos e singapurenses foram chamados por representantes da Cambridge Capital Trading a tomarem opções sobre movimentos cambiais. Os investidores foram então direcionados para os sites falsos e disseram para transferir fundos para a conta bancária na Malásia. A Flórida é fértil para a fraude em moeda estrangeira 0206 - Quando pesquisadores da Commodities Futures Trading Commission examinaram as contas bancárias de Lazaro Jose Rodriguezs, disseram que descobriram que, em um único mês, retirou fundos de negociação de clientes para gastar 173,251 em duas Chevrolet Corvettes. Em um caso separado, a CFTC em dezembro processou um homem de Coral Springs e as empresas que ele correu, alegando que eles tomaram fraudulentamente 14 milhões de pelo menos 140 pessoas alegando falsamente que fizeram grandes lucros comercializando futuros em moeda estrangeira. A fraude das commodities, um problema crescente no sul da Flórida e em todo o país, será um tema de debate quando os líderes do setor se encontrarem na conferência anual da Futures Industry Associations no próximo mês em Boca Raton. Embora não existam estatísticas confiáveis ​​sobre a fraude de commodities por região geográfica, e muitos casos incluem suspeitos de diferentes áreas, o consenso da indústria é que o sul da Florida supera o resto do país. A combinação de inúmeras palmeiras, telemarketing maligno, bancos de telefone, aposentados ricos, advogados de defesa de telemarketing e proximidade com as Florestas do Sul de perto de jurisdições estrangeiras torna um ímã para aqueles que querem ganhar a vida com a língua e um telefone, disse Gregory Mocek, diretor de execução da CFTC, que poliza a venda de futuros e opções de commodities. QuotPor um pouco de óleo de bronzeador do Panamá Jack na situação e você tem um ambiente perfeito onde os investidores ficam queimados. Em uma ação apresentada no início deste mês, a CFTC alegou que Rodriguez, com sede em Miami, queimou cerca de 400 investidores por um total de 1,5 milhões depois Prometendo-lhes 300% de lucros comerciais. Rodriguez não pôde ser contactado para comentar. Entre as tendências que a CFTC encontra no sul da Flórida: as operações de negociação estão sobrecarregando os clientes exigindo que paguem tanto uma comissão quanto o chamado spread, essencialmente outra comissão. Algumas salas de caldeiras começaram a buscar investidores em ouro, o que é atrativo porque aumentou 26% no ano passado. Com o crescimento da Internet, os reguladores também estão vendo mais operações de negociação on-line oferecendo contratos de câmbio ilegais e depois abusando dos investimentos que recebem, disse Mocek. Alguns especialistas da indústria dizem que a história da South Floridas como um viveiro para salas de caldeiras de telemarketing facilita que os fraudadores se movam rapidamente para commodities, como moedas quando o mercado fica quente. A Florida do Sul foi a capital de fraude das opções de commodities do mundo no início da metade dos anos 80, disse Robert Wayne Pearce, um advogado da Boca Raton, especializado em commodities e lei de estoque. Na década de 1990, funcionários federais e estaduais reprimiram as salas de caldeiras e os mercados de commodities se acalmaram quando os investidores transferiram dinheiro para o mercado de ações. Mas com os preços das commodities, como o ouro, o petróleo, o cobre e a platina, aumentando acentuadamente no ano passado, os investidores ficaram mais interessados ​​no mundo esotérico do comércio de futuros e opções. Isso dá oportunidades aos hucksters lá fora, disse Pearce. Um bom indicador, embora não científico, é que os anúncios de treinamento em comércio de commodities estão começando a aparecer mais freqüentemente nos jornais e outros meios de comunicação, disse ele. As commodities são bens físicos, como metais, alimentos, grãos e moedas. Um investidor costuma comprá-los através de um contrato de futuros, um acordo para comprar ou vender um valor fixo de uma mercadoria em um horário predeterminado. Um contrato de futuros é uma obrigação para o comprador e vendedor. Um contrato de opções é diferente na medida em que é uma obrigação apenas para o vendedor. Em todo o país, a CFTC reuniu cerca de 300 milhões de restituições e penalidades em 85 casos nos últimos cinco anos, disse Mocek. Cerca de 24 mil pessoas foram vítimas nesses casos. Mas John Damgard, presidente da Futures Industry Association, pensa que as penalidades - normalmente suspensões, multas ou banimentos da indústria - não são suficientemente severas. O maior problema não é as empresas que trocam trocas, mas criminosos que executam quotstorefrontsquot que fingem ser legítimos, disse Damgard. No sul da Flórida, a CFTC precisa trabalhar mais de perto com os funcionários responsáveis ​​pela aplicação da lei e com o escritório dos advogados do estado para garantir que os infratores entrem na prisão, disse ele. O CFTC não possui essa autoridade. É um engano cruel para fazer da CFTC a agência líder em colocar esses caras no slammer, disse Damgard. Ele gostaria de ver um promotor público na Flórida, fazer um exemplo de fraudadores da forma como o procurador-geral da Nova York, Eliot Spitzer, desafiou as empresas de Wall Street no tribunal. Mocek disse que o CFTC abriu um Escritório de Execução Cooperativa há mais de três anos e colaborou com o FBI, escritórios do procurador-geral estadual e procuradores locais. Mas Mocek sabe disso, desde que o clima seja agradável, os bombeiros das commodities farão do sul da Flórida para casa. Há uma série de pessoas, disse ele, que preferiria fazê-lo em um local aconchegante, em vez de se sentar em um icecap. quot Restituição ordenada em caso de fraude de investimento em moeda estrangeira 0306 - Flórida - Setenta vítimas em uma estafa de investimento podem ter uma chance Para recuperar suas perdas. O procurador-geral Charlie Crist, sexta-feira, disse que David Alan Luger, da Boca Raton, recebeu o pagamento de 2,2 milhões de restituições às vítimas do que o estado chamou de fraude de investimento multimilionário. Luger também foi condenado a cumprir 13 anos de prisão. Ele foi condenado em um caso perseguido por Crists Office of Statewide Prosecution. Luger, que foi processado por papéis de gestão no que o estado chamou de várias operações da sala de caldeiras, correu o que os promotores chamaram de anel de fraude de investimento que vitimou idosos floridianos, prometendo altos retornos no mercado de moeda estrangeira. Em vez de investir os fundos, os promotores argumentaram que Luger e um cúmplice mantiveram o dinheiro para seu uso pessoal. O estado disse que muitas vítimas de Lugers perderam suas economias de aposentadoria para a fraude. As salas de caldeiras operaram de 1999 a 2003 sob os nomes comerciais da USFX Corp. e da Worldwide Forex Corp. Luger foi preso em 2001 por seu papel na fraude, mas os promotores disseram que iniciou outra operação, chamada Grupo 24, enquanto presta prisão domiciliar em Boca Raton. O estado disse que um cúmplice é atualmente um fugitivo internacional. Aqueles que roubam de nossos idosos por seu ganho pessoal serão processados ​​na maior extensão da lei, disse Crist. Os Floristas podem ter certeza de que serão protegidos desses personagens sem escrúpulos. O Departamento de Polícia de Boca Raton e o Escritório dos xeris do Condado de Broward conduziram a investigação. Luger foi condenado em janeiro por acusações de arremetidas, grandes roubos, transações fraudulentas e fraudes por telemarketing. O juiz do circuito de Palm Beach, Krista Marx, condenou Luger ontem. South Florida Business Journal O homem de Richmond enfrenta até 120 anos para o esquema de fraudes escolares em moeda estrangeira 1206 - (AP) RICHMOND, Virgínia. - Um homem de 22 anos de Richmond, acusado de trair mais de 350 investidores, cerca de 8,3 milhões se declararam culpados Quarta-feira para enviar fraudes de correio e lavagem de dinheiro. James E. Brown Jr. enfrenta um máximo de 120 anos de prisão e multas de até 16 milhões em cada conta quando ele for condenado em 14 de março pelo juiz distrital Richard Williams, de acordo com procuradores federais. Brown foi preso em setembro após uma investigação do FBI, do Serviço de Inspeção Postal dos EUA e do Internal Revenue Service. Autoridades acusaram que Brown, proprietário e presidente da Brown Investment Services, prometeu aos investidores que ele poderia duplicar seu dinheiro a cada 30 dias úteis através da negociação no mercado de câmbio estrangeiro. The investment program, which Brown promoted at classes and seminars, was bogus. Little of the money was invested, and Brown paid early investors with cash coming in from subsequent investors to lull them into believing the investments were paying off as promised. Brown used the money to finance a lavish lifestyle, including a 2.9 million fleet of luxury automobiles for himself and his employees. According to prosecutors, of the 8.3 million Brown obtained from investors, he only invested 484,000 in the foreign currency market, losing about 61,000. Only about 700,000 remained in the companys bank account when Brown was arrested. Forex trading educational center taught victims how to lose money 0807 - California - Joel Nathan Ward, 48, of Turlock, has pleaded guilty to charges related to swindling millions of dollars out of trusting investors. Mr. Ward, a frequent commentator and seminar speaker on foreign currency exchange (8220forex8221) trading, ran an elaborate scam through two of his companies, the Joel Nathan Forex Investment Group of Turlock and Learn: Forex Inc. a forex trading educational center based in Sacramento, federal prosecutors say. A federal grand jury indictment alleged that as part of the scheme, Mr. Ward offered investors the opportunity to invest in the foreign exchange interbank 8220spot8221 market through his fund, the Joel Nathan ForexFund. Many of the victims were family members, close friends, and individuals who had been enrolled in the Learn: Forex program, either in Sacramento or through online classes. Mr. Ward required a minimum 50,000 investment, and told investors they could anticipate significant returns. The indictment also charged Mr. Ward with defrauding investors in a second scheme relating to a purported real estate investment project in Mississippi. He was alleged to have simply diverted investors funds to his own use. In pleading guilty Friday, Mr. Ward admitted that he stole the investors8217 funds, using the money for his own compensation and expenses, and to purchase the Learn: Forex School in Sacramento. He also admitted that in order to conceal the theft, he made 8220Ponzi8221 payments using other investors8217 funds and provided his investors with altered account statements. The scheme collapsed in November 2006. The investor victims lost over 7 million. quotWard used his self-proclaimed expertise in foreign currency trading to steal millions of dollars from family, friends, employees, and other investors. While he claimed to be a highly successful trader, in fact he was merely a thief,8221 says U. S. Attorney McGregor Scott. The guilty pleas were entered to five counts of wire fraud, two counts of mail fraud, and two counts of engaging in monetary transactions in property derived from specified unlawful activity, a form of money laundering, according to Assistant U. S. Attorneys Benjamin Wagner and Ellen Endrizzi, who are prosecuting the case. There was no plea agreement in the case, and Mr. Ward is to be sentenced Nov. 2. The maximum penalty under federal law for each offense of wire fraud and mail fraud is 20 years8217 imprisonment, a three-year term of supervised release, and a 250,000 fine. The maximum penalty for each offense of money laundering is ten years8217 imprisonment, a three-year term of supervised release, and a 250,000 fine. However, the actual sentence will be determined at the discretion of the court after consideration of the advisory Federal Sentencing Guidelines, which take into account a number of variables, and any applicable statutory sentencing factors. Central Valley Business Times Commodity Futures Trading Commission warns of a rise in foreign-currency trading scams. 0306 - They reach people, often retirees, through cold calls and television commercials. And they likely made off with 1 billion of stolen money in the last five years. Foreign-currency trading scam artists, thanks to their growing numbers, are the target of increased enforcement and education efforts by federal regulators. And a disproportionate number of them seem to have set up camp in South Florida, said Reuben Jeffery, chair of the U. S. Commodity Futures Trading Commission, at the Boca Raton Resort amp Club. Jeffery and other CFTC regulators said the Futures Industry Association has created a task force to attack the fraud problem that plagues the foreign-currency markets, which trade an average of 1 trillion a day. quotMost forex dealers are legitimate. But there are a growing number of scam artists, quot CFTC Commissioner Michae Dunn said. quotIts a black mark on the entire industry. quot He said scam artists have ripped off tens of thousands of Americans of all ages, though they primarily target retirees. In the 87 cases the CFTC has filed in federal court in the last five years alleging foreign-currency fraud, investors have lost a total of 380 million. Dunn estimates that investors lost 1 billion in that time to foreign-currency fraud. quotWeve got stories of people suffering from dementia and get these cold calls, quot said Dunn said. quotThere are also some very, very bright people who get scammed. quot With foreign-currency trading, investors buy currencies on the open market. They hope the currency theyre buying will rise in value more than the currency theyre using to buy it. The CFTC is working with state and local authorities to step up investigations and prosecutions in fraud cases. It is also trying to educate the public through an informational brochure, partnerships with consumer groups and town hall-style meetings hosted with the National Futures Association. The message, in large part, is that investors should be wary of unlicensed brokers offering deals that sound too good to be true. Investors should avoid high-pressure sales, confusing investments and brokers who encourage them to mortgage their home or cash out their retirement savings. Dunn also encouraged people whove been cheated to spread the word about fraud among their friends and neighbors. quotIm always amazed people are being defrauded and they dont tell anybody about it, quot he said. quotWe had a whole community ripped off that way. quot Investors who suspect fraud or want more information can visit cftc. gov. The National Futures Associations website, nfa. futures. org, also allows people to run background checks on brokers. Palm Beach Post Man given prison time in currency fund scam 0106 - California - A San Diego man was sentenced yesterday to five months in prison and five months house arrest for his part in a multimillion-dollar scam centered on a bogus foreign currency fund. Stephen Baere, who worked for Richard Robert Matthews at the La Jolla-based White Pine Trust Corp. was sentenced by San Diego federal Judge Jeffrey Miller. Baere is to surrender to federal authorities March 27. Matthews admitted last April to soliciting 22 million from 247 investors between 2000 and 2004 and then absconding with much of the money, according to court filings. He pleaded guilty to one count of mail fraud and was sentenced in December to more than five years in prison. He also was ordered to pay back more than 14.7 million to investors in the United States and abroad. Baere admitted to prosecutors in June that he misled hundreds of investors, but he said yesterday through his lawyer that he was unaware that the fund was bogus and that Matthews was making off with clients money. 8220He had no idea what Matthews was doing, and he was crushed when he found out,8221 said Colin Murray, Baeres attorney. Baere, who pleaded guilty to one count of conspiracy to commit mail fraud, told prosecutors that he worked for Matthews between January 2002 and December 2003. During that time, Baere told prosecutors that he gained between 400,000 and 1 million. In addition to the prison time, Miller yesterday ordered Baere to pay 600,000 in restitution. Tyler Zollinger, also associated with White Pine, is scheduled to be sentenced in February. Scammed forex investors may get some of their money back from crooks 0807 - About 100 investors in a securities scam 8211 most of them from Texas 8211 are a step closer to getting some of their money back after a court granted a summary judgment against the architect of the scam, the Securities and Exchange Commission said Thursday. U. S. District Judge Jane Boyle last week ordered Gerald Leo Rogers of Seattle to return 11 million and pay a fine of 120,000. In 2005, the court froze the assets of Mr. Rogers and his companies, Premium Investment Corp. TriForex International Ltd. and InForex Ltd. According to the SEC, Mr. Rogers is a twice-convicted felon whose criminal and securities fraud history spans nearly four decades. He started his latest scheme in 2004, shortly after being paroled from a 35-year prison sentence, the SEC said. According to the SEC, Mr. Rogers hired 140 sales agents to target mostly retirees with promises of quotguaranteed profitsquot and quotsafety of principalquot in covered-call options in foreign currency trading. quotRather than investing in these safe, covered-call transactions, Rogers, who believes hes a financial genius, invested millions of dollars in speculative trades, quot said Jeff Norris, the trial attorney for the Fort Worth SEC office in the case. quotIts one of the most clever and diabolical schemes that Ive seen, because Rogers created a program that made it extremely difficult for investors and even brokers to do due diligence, because everything was taking place overseas. quot Mr. Rogers parole has been revoked, and the 72-year-old is back in prison until 2015, according to the Bureau of Prisons Web site. The summary judgment should clear the way for the court-appointed receiver to start returning some of the victims money. quotIt looks like about 40 cents on the dollar, which is not really badquot in a case like this, Mr. Norris said. quotIf we hadnt caught this when we did, it could all have been gone. quot Dallas Morning News Forex Fraud Nets Conman Jail Time NEW YORK - 0208 - A New York man was sentenced to more than 12 years in prison Friday in connection with a foreign currency exchange scam that bilked more than 200 investors out of 6.5 million. The U. S. Attorneys office in Manhattan said Boris Shuster, also known as quotRobert Shuster, quot was sentenced to 150 months in prison at a hearing in U. S. District Court in Manhattan. U. S. District Judge Victor Marrero also ordered Shuster to forfeit 7.89 million and pay a 10,000 fine. Shuster, guiltyleaded guilty to conspiracy, 14 counts of wire fraud and 13 counts of mail fraud last June. Prosecutors had sought a sentence of 235 months to 293 months in prison, said Sarita Kedia, Shusters lawyer. quotWe do plan to appeal, quot Kedia said. Shuster was previously sentenced to 60 months in prison after pleading guilty to criminal charges in a separate forex scam in federal court in Brooklyn. He had remained free pending his sentencing in federal court in Manhattan, Kedia said. In the Manhattan case, prosecutors had alleged that Shuster and Alexander Dzedets operated a fraudulent forex firm named Holston, Young, Parker amp Associates in Manhattan. Dzedets, 32, and nine others have pleaded guilty to criminal charges in the quotboiler roomquot scheme, prosecutors said. Employees of the firm allegedly used false and misleading sales pitches and high-pressure sales tactics to convince people to invest in its purported forex trading program, the government said. Funds raised werent used to invest in the forex market, but were instead diverted to bank accounts in Cyprus and Russia, prosecutors said. The Refco Case: How 75 billion evaporated. The forex business has always had its dark side. A forex scam is nothing new, and most traders are aware that trading forex necessitates a basic acceptance of the risks involved in interacting with a broker. Still, the Refco case stands out in recent history due to the size of the collapse and the number of people involved, not to mention the material and psychological damage incurred. At the time of its collapse in 2005, Refco, a New York commodity broker catering to forex traders, had about 4 billion in client assets, with liabilities reaching upwards of 75 billion. It is clear that the leverage risk taken by the managers of the firm went far beyond anything that could be considered reasonable. The fraud, however, was operated mostly by the CEO and chairman of the company, Richard Bennett, and involved creative account techniques that we have grown familiar with since the years of the bust. Mr. Bennett simply shuffled the bad debt of Refco between the company and certain hedge funds and shadow entities funded by Refcorsquos own capital. In order to prevent these bad assets of the firm from being written off, they were sold to shell companies controlled by Mr. Bennett. It was then that he abused his status as the chairman of Refco by ensuring that a continuing supply of capital flowed to the fake entities he was creating. The fraud was eventually discovered by Refco itself after a period of almost five years and resulted in the corporations Chapter 11 bankruptcy. Losses were suffered by many clients, including forex traders at FXCM, which at the time Refco held a 35 stake in. One notable feature of this scandal is the fact that Refco was a repeat offender when it came to regulatory infractions. The commodities broker was found to be in breach of several regulations at various points in time by the authorities, but clearly not enough was done to ensure future compliance through tighter oversight and enforced regulation. There are a few lessons one can derive from the Refco scandal. First, regulation is by no means a guarantee of protection against creative executives or employees perpetrating fraud. One can also note, as in the case of FXCM, that even a healthy and trusted broker may cause losses to clients if its parent company is a victim of fraud, or is being run by con-men. Next, using leverage at any unsustainable level is not a sensible practice. And finally, the status of Richard Bennett as the architect and chief perpetrator of the fraud reminds us that the declarations of a companyrsquos management about itself should by no means be taken at face value. While it is possible to gain an understanding of various trading platforms by reading through forex software reviews. even the best broker reviews and studies will not help much in anticipating a fraud. The best protection against such a devastating result is diligence and diversification. First make sure that you execute your forex trades through reputable brokers that are licensed and free of regulatory infractions. Then make sure that all your eggs arent in one basket. Only invest what you are fully prepared to lose since forex trading is highly risky. Visualize the loss of every last penny you invest rather than the untold riches you hope to gain. Just like in Vegas, money can be made, but you must fully realize that the odds are not primarily in your favor. These tips may help to ensure that your assets will not totally be wiped out even if one of your broker goes bankrupt, or commits fraud. How to spot investment scams MANILA, Philippines A few days before All Saints Day, the National Bureau of Investigation (NBI) Anti-Fraud and Action Division received an anonymous complaint about a growing investment scam in Southern Luzon. The Grand Alliance of Business Leaders Association Inc (Gabai), reported to be the marketing arm of the South Luzon Multipurpose Cooperative (SLMC), allegedly duped its investors into paying as high as P175,000 weekly for a 40 return. The local police is now investigating the matter, said NBI Senior Agent Normando Anire on Thursday, November 14. SLMCs allegedly fraudulent scheme is just one of many. Over the years, big-time swindlers have victimized unsuspecting investors with their promises of guaranteed returns. Thousands of investors lost their savings from the pyramid scams of companies Grupo Mateo Pilipinas Investors Association Inc and Multinational Telecoms Corporation, headed by Engineer Ervin Mateo and Rosario Baladjay, respectively. Mateo and Baladjay were arrested in 2003. Money lost forever More recently in 2012. complaints were filed over the P12-billion pyramid scam of Aman Futures boss Emmanuel Amalilio aka Mohammad Kamal Saaid. Anire warned that too often, victims are unable to recover their lost monies, even as they go after the scam perpetrators in court. Unfortunately, because the monies have already been spent or used as payment, I do not know of any case where monies were recovered. Usually, no money returns to the victim. So others are getting tired. Instead of filing a case, they opt to no longer do. Normando Anire, NBI Anti-Fraud and Action Division Unfortunately, dahil nga nagastos na yung mga pera na yan o kaya pinangbayad, wala ho akong nalalaman na naka-recover. Kadalasan wala nang maibabalik sa inyong pera. So napapagod na yung iba. Instead na magkaso, huwag na lang , he told the crowd. (Unfortunately, because the monies have already been spent or used as payment, I do not know of any case where monies were recovered. Usually, no money returns to the victim. So others are getting tired. Instead of filing a case, they opt to no longer do.) Anire delivered his talk before a group of 200 overseas Filipino workers (OFWs) and their family members on how to spot fraudulent investments. OFWs are often the target of investment scammers because of their liquidity or ready cash, he said. Estelle Osorio of the Biz Whiz Business Training and Consultancy was likewise present to share her expertise. Osorio is a Certified Investment Solicitor (CIS), while Biz Whiz provides seminars on financial literacy, especially pertaining to the stock market, forex trading, and bonds. The CIS explained that there are often red flags that can be observed from scam operators providing false information. Here are some of the investment tips they shared: 1. If its too good to be true, it probably is. Osorio explained that a guaranteed return is considered a red flag. She also warned against high-yielding investments. There is no such thing as a risk-free investment, Anire echoed. There is always some level of risk involved. He explained that this is due to external factors that may affect the company. 2. No business gains solely from recruitment. A business does not gain primarily or even worse solely on recruitment. Businesses capitalize on products andor services. Kung kikita sa pamamagitan lang ng pagre-recruit, bawal. (If you will gain solely through recruitment, thats not allowed.) Profit must come from the product and not from recruitment, Anire said. 4 Questions To Ask Before Investing: What is the background of the company How much do I need to invest, and how much will I get in return When will I get my return on investment How is the investment making my money grow Estelle Osorio, Certified Investment Solicitor (CIS) The problem with these types of schemes, Osorio explained through a diagram, is that they often fail when investors can no longer lure new investors. Older investors must be able to gain from profits earned out of the business itself instead of commissions from recruitment. In the end, people lose their money when newly-lured investors cash-out and the promoters run away with the money already invested. 3. Vague information may mean deceptive information. Osorio told the crowd to always probe to protect their interests. How much is the minimum placement What is the rate of return When are investments expected to return One must be on a constant information-seeking mode when looking for where to invest ones family earnings. Think twice about investing in a company that is not transparent about how profits are earned or offers vague and confusing explanations about where money is invested, Osorio said. If you dont understand how you will make money, do not invest in it, she said. Anire also advised the OFW groups not to entrust their money to just anyone, much less people they do not know. He used as example family members or personal friends who fail to pay their debts on the set date. Paano pa yung hindi mo kakilala (How much more those who you do not know) he asked rhetorically. Pinaghirapan na pera yan biglang mawawala, dahil nagtiwala kayo agadLaging nasa huli ang pagsisisi , he said. (That is hard-earned money that will just be put to waste, because you trusted too easily. Regrets always come at the end.) 4. Double-check with government data Osorio advised would-be investors to do their due diligence. She said one must look into a companys track record. Check if the company is registered with the Securities and Exchange Commission (SEC). A SEC company registration does not grant the authority to sell investment instruments such as securities, bonds, and commercial papers. For insurance products, I suggest always consult the insurance commission website. If the company is not on the list, dont buy, she said. Osorio likewise shared a few features of Internet-based Ponzi Investment Schemes, based on a SEC warning. Named after scammer Charles Ponzi, a Ponzi scheme is a fraudulent operation intended to convince the public to invest their money. It generates returns for earlier investors by tapping subsequent ones. The SEC said that Internet-based Ponzi schemes have investments in foreign currency (often US dollars), offer a huge profit in a very short period of time, have no paper trail such as contracts and receipts, provide for a lock-up period wherein an investor cannot touch hisher investment for a number of daysmonths, have unknown offices and officers, and conduct orientation seminars informally. When dealing with investment offers by phone, e-mail, flyers, newspaper ads, or directly by any person, always know the company or the person you are speaking with. Get the landline number, which can be traced, instead of a cellphone number. Anire and Osorio were invited guests in the OFW-targeted forum hosted by the Blas Ople Policy Center and Training Institute and the Villar Social Institute for Poverty Alleviation and Governance. RapplerForeign Exchange Investment Fraud Investments in the foreign currency exchange market (FOREX) is a relatively new fraudulent promotion being developed and sold across the country. You are led to believe that you are investing in a currency futures market which is highly regulated, and a market traded in by large banks and financial institutions whose commissions for trades are no more than two or three points. The foreign currency quotspot marketquot is commonly referred to as the quotForexquot. Foreign currency contracts may be legitimately traded either on a recognized futures exchange or in the quotinterbank market, quot which generally involves trading between large institutions such as banks and corporations, rather than individual or retail customers. Fraudulent currency trading firms often tell customers that their trading is done in the quotinterbank marketquot on your behalf. quotWith a 10,000 deposit, the maximum you can lose is 200 to 250 per day. quot Many currency traders ask customers to give them money known as quotmargin, quot often sums in the range of 1,000 to 5,000. These amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading. Margin trading can make you responsible for dollar losses that greatly exceed the margin amount you deposited. quotYou take only as much risk as you see fit. quot Such leveraged trading allows investors to speculate with a cash margin of less than 5 of the U. S. dollar price for foreign currencies such as the German Mark, the Swiss Franc, the British Pound and the Japanese Yen. quotWhether the stock market moves up or down, in the currency market you will always make a profit. quot The victims of these fraudulent promoters are actually being sold a position in a currency forwards market which is both completely unregulated and provides no guarantee that the promoter has secured the forward position in the traded currency. You are also not aware that you will pay a 50 commission on each deal and that they have no chance to either make a profit or to recover their investment. This type of investment scam terminology is often used along with Prime Bank Schemes and substantiated by Ponzi payments. One group, Forex Investment, recruited quotprofessional currency tradersquot who actually had insufficient training and experience in forex trading, leaving most investor accounts suffering substantial losses about three out of every four dollars invested in the program. For more information regarding this type of investment be sure to investigate the databases of the National Futures Association and the CFTC. Companies will make deceptive, misleading and high-pressured sales solicitations. Often principals fail to diligently supervise employees and agents in the conduct of their commodity futures activities. They make deceptive, misleading and unbalanced sales solicitations churn customer accounts and fail to uphold high standards of commercial honor and just and equitable principles of trade. Soliciting people to invest without being registered. Engage in fraudulent solicitation practices. They commit fraud in connection with the purchase and sale of commodity futures and options contracts for customer accounts by making false, deceptive, and misleading statements or omissions of material facts. They commit fraud by churning customer accounts in a pervasive and widespread manner to generate commissions, without regard for the trading objective of customers making fraudulent statements concerning, among other things, the likelihood of profits in trading commodity futures and options contracts, the risk of loss, and the experience and trading success of their company and salespeople. Make communication with the public which operates as a fraud or deceit. They directly or indirectly (1) Violate, aid or abet or induce directly or indirectly the violation of sections 4b(a)(i), 4b(a)(iii), and 4c(b) of the Act and sections 33.7(f) and 33.10 of the CFTCS regulations involving cheating or defrauding or attempting to do so, or willfully deceive or attempt to do so in regard to any commodityfuture order or contract, and (ii) violate Section 166.3 of the CFTCS regulations by failing to supervise diligently the handling of commodity accounts. They fail to prove by clear and convincing evidence that their registration would pose no substantial risk to the public. They engage in acts and practices that violate the Commodity Exchange Act and CFTC regulations. They make false statements on their registration documents filed with the CFTC by failing to list principals of the company due, in part, to their controlling financial interest in the company. They fail to supervise diligently the handling of customers commodity futures and commodity option accounts by failing to monitor sales solicitations made by its salespeople and by instructing its salespeople to misrepresent material facts to induce customers to engage in trading practices designed to maximize commissions. The company officials, without admitting or denying any allegations, usually consent to the entry of a permanent injunctive order finding that their company violated the anti-fraud provisions of the CEA and CFTC regulations and permanently enjoining it from further such violations. Then they just wipe the slate clean and start a new company. The courts often find quotsystematic, willful and pervasive fraudulent conductquot regarding violations of the law and CFTC regulations over a long period of time. Improper sales practices often continue even after the filing of actions with the principals approval and active participation. They violate NFA Compliance Rule 2-29(A)(2) by employing a high-pressure approach with the public. Misrepresentations often include: the likelihood of profit and the possibility of loss in trading commodity options, the applicability and importance of the risk disclosure statement required by Commission regulations, their companys experience and reputation in the commodity industry, their success rate in trading commodity options, and the existence of an in-house research department and a staff of analysts. They systematically engage in high-pressure sales tactics, typical of a boiler-room operation, and routinely make false or deceptive statements when soliciting customers. They provide little training to its APs other than sharpening high-pressure sales techniques. They encourage its salesmen to maximize commissions by pressuring and convincing its customers, through high-pressure and fraudulent sales techniques, to purchase inexpensive, significantly out-of-the-money options that were seldom profitable to the customer after commissions. They typically charge its customers a commission of 175 per option to buy an option with a commission fee of 75 to offset an option transaction. The paramount goal of the sales operation is to maximize commission income by maximizing the number of options purchased by customers and by misrepresenting the profit potential of the options purchased for customers. Numerous option accounts contained transactions in which the commission-to-premium ratio exceeded 100 percent, and that a majority of customers paid between 40-60 percent of their investment funds for commissions. They encourage such high commissions by financially rewarding account executives based only on the volume of options purchased, and by discouraging or prohibiting the purchase of more expensive options. They accomplish their objective of maximizing commission income by encouraging its APs to misrepresent the profitability of the options marketed by them and to misrepresent the impact of the commission structure on the profit potential of the options marketed to customers. For example, one complaint alleged that over a 3 12 year period one company traded over 2,800 customer accounts and that over 90 percent of those customers lost all or substantially all of their money, while the company collected 12.8 million in commissions. That one complaint also alleged that in just five months the company had 1,126 actively traded customer accounts, and those accounts had an aggregate net loss of about 5.5 million and had paid total commissions of approximately 2.6 million, which accounted for 48 percent of the net losses. Another CFTC complaint alleges that, in a twelve-month period, one company handled approximately 988 customer accounts, which generated 3.16 million in commissions while customers lost over 7 million. Of the customer accounts handled in this period, 97 percent lost all or nearly all of their equity. For a five-month period, they handled approximately 1,019 accounts, which generated 2.2 million in commissions but resulted in 83 percent of its customers losing all or nearly all of their equity in an amount aggregating 5.2 million. Their radio commercials operate as a fraud and deceit and are created and aired with a total disregard for the truth. At the principals direction the companies engage in a deliberate course of conduct to defraud and deceive customers. Foreign Currency Fraud Victims Representing to customers and prospective customers: -- that they are guaranteed to make a profit as the result of an investment in commodity options, -- that trading commodity options is virtually risk-free, and -- that disclosure documents required by CFTC regulation are insignificant or of little importance, or words to that effect. Omitting to inform customers and prospective customers: -- that a seasonal increase in demand for a specific commodity, such as heating oil and unleaded gasoline, in and of itself, will not necessarily result in increased value of the option on the given commodity, -- that past trends in futures prices on specific commodities do not necessarily forecast current profitability of options on futures contracts on those commodities, -- that currently known market news does not necessarily mean that a customer will make money by trading through them as currently known market news is usually already factored into the underlying futures price, as well as the option value, -- that, except possibly for in-the-money options, a rise in the price of the underlying futures contract does not typically correlate on a one-to-one ratio with a rise in the price of an option on that futures contract, -- that stop loss orders are not always effective in limiting risk of loss, -- that diversification of opt ion positions does not necessarily limit risk of loss or increase profit potential for each option position purchased, and -- that, under certain market conditions, a customer may find it difficult or impossible to liquidate a position since market conditions on the exchange where the order is placed may make it impossible to execute a liquidation of the position. They fail to obtain customer information in a proper manner. They fail to maintain the amount of net capital required by Commission regulations, fail to notify the Commission of such and fail to keep current books and records. Some fraudulent forex companies solicit customers to trade in an options strategy known as quotbutterfly spreadsquot aware of the consistently negative effect the strategy has on the ability of customers to make money over the long term. They defraud its customers by placing matched buy and sell orders for futures contracts on U. S. futures exchanges. It then assigns trades to particular accounts to create a desired pattern of profits and losses. They place orders to purchase and sell the same quantities of the same contract at identical or nearly identical prices. These trades generally are offset by another company, as day trades at the exchange clearinghouse, but are nonetheless listed as quotopenquot in separate sub-accounts held in one companys name. They then issue trading statements that falsely reported these closed-out day trades as remaining open. The one company uses these statements to falsely report profits or losses to customers by means of matching long and short positions from the various sub-accounts and falsely reporting to customers that such trades were mutually offsetting. They falsely and deceptively confirm the execution of certain fraudulent transactions by suggesting that the purchases and sales listed side-by-side in the confirmation are mutually offsetting, when, in fact, they are unrelated trades. They purchase for customer accounts, most of which were discretionary, butterfly-spread option positions, for which the firms assess a fee of 180 per option. The butterfly spreads consist of four puts or calls (two buys and two sells), resulting in four commissions for each butterfly option position, or 720 per spread. The 720 commission is in addition to a 12 percent of equity, up-front fee charged. Along with the commission structure, they also institute a policy of minimizing the amount of customer money committed to the market as premium by purchasing less expensive quotout-of-the-moneyquot positions. The butterfly spread trading strategy and commission structure was used to replace a previously charged 40 percent up-front fee and 60 per roundturn option commission after German courts were looking with disfavor on large up-front fees charged by brokers and were awarding damages to complaining customers. This reduced the up-front fee to the 12 to 13 percent range, tripled the per option commission to 180, and allowed them to begin trading butterfly spreads for their customer accounts, which were mostly discretionary. The fraudulent trading strategy makes it virtually impossible for customers to earn a profit on their investments given the commission structure and the trading strategy employed. In fact, almost all the butterfly spread trades expired without value, or were exercised and assigned for a financial result of zero. Total losses consisting of commissions and premiums for 339 customers in one case were approximately 5.6 million, of which approximately 4.8 million, or 86 percent, were attributable to commissions (excluding the 12 percent fee deducted). 0998 - The SEC filed a complaint and obtained emergency relief involving a Ft. Lauderdale company, International Capital Management . Inc. (ICM) that solicited investors with claims that they would profit from its foreign currency exchange program. According to the complaint, ICM used high pressure quotboiler-roomquot telemarketing sales tactics to raise approximately 18 million from more than 1600 investors from October 1997 to early September 1998. They told investors that they could obtain returns of 3-6 per month and sent bogus monthly account statements that showed consistent profits. ICM also told investors that 80 of investor funds would be held in a bank account and the remaining 20, which would be used in ICMs foreign currency trading program, would be protected from significant losses by their purported use of a quotstop-lossquot order on every trade. All of these representations were false in that the foreign currency trading generated a net loss for investors, ICM did not keep 80 of investor funds in bank accounts, nor did they use quotstop-lossquot orders on all trades. The SECs claim also named WorldCorp Traders amp Co. Inc. (WorldCorp) as a relief defendant, alleging that ICM had transferred at least 10 million to WorldCorp. which used at least some of those funds to trade in foreign currencies. The SEC froze all of ICMs assets and those assets of WorldCorp that were provided by ICM. ICM consented to a permanent injunction against future violations of the antifraud provisions of the federal securities laws and consented to the appointment of a receiver. The receiver has recovered approximately 5.2 million and made an initial distribution to more than 1,600 investors and creditors of nearly 3.3 million, representing 19.6 of their claims, and continues to pursue actions against other defendants. On July 6, 2001, Jared DArgenio who pled guilty to one count of conspiracy to commit mail fraud and wire fraud faces a maximum sentence of five years in Federal prison. Later in the year Nelson N. Schembari pled guilty to one count of conspiracy to commit mail fraud and wire fraud and faces a maximum five years. Ken Tripoli pled guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of money laundering and faces a maximum sentence of twenty years. Larry Tripoli pled guilty to one count of conspiracy to commit mail fraud and wire fraud and faces a maximum sentence of five years. Civil Action No.98-7062-CIV - DIMITROULEAS A similar foreign currency trading scheme, Unique Financial Concepts . Inc. was also sued by the SEC. 0999 - Anthony Baldwin and Global Currency Management . Inc. were alleged to have fraudulently raised over 1 million from investors who believed his promotional material which stated he had a notable and recognized record of consistently profitable returns, averaging almost 5 monthly, in his foreign currency trading. Reassured by false monthly account statements which depicted the investment as safe and profitable, victims were unaware that he had already lost virtually all of their money in trading despite, or perhaps because of, his former experience with International Capital Management. ( see above ) He agreed to the SEC injunction but was not required to make restitution due to his demonstrated inability to pay. A few current ops are using the firm names Salmon Chase International, Inc. Gibson Reed and First Forex Holding Corporation. On January 1st 2002, the European countries began using the new Euro. Never before have so many countries with such powerful economies united to use a single currency. Get your piece of history now We would like to send you a FREE Euro and a FREE report on world currency. Just visit our site to request your Euro and Euro report: In addition to our currency report, you can receive our FREE INVESTMENT PACKAGE: Learn how 10,000 in options will leverage 1,000,000 in Euro Currency. This means even a small movement in the market has huge profit potential. If you are over age 18 and have some risk capital, its important that you find out how the Euro will change the economic world and how you can profit 10,000 minimum investment Investing in Forex Currency options is speculative and includes a high degree of risk. Investors can and do lose money. 1002 - EMF HOLDINGS, INC., a quotreal estatequot firm in Cebu and Manila in the Philippines and Hong Kong ( with plans to expand to Singapore and Japan ) specializes in currency trading ( yen against the dollar ), though they also maintain different savings and checking accounts in dollars and pesos in various international banks. Though the company is small, EDGAR FIGER, the owner, says he has a great deal of experience in trading and while he seems to own 80 of the company, for some reason, his name does not appear in any of the registration documents, especially with the SEC there. Investors seem to become creditors who loan the company money with a promise of 20 returns every 30 days. The traders must accumulate enough borrowed funds to reach a contract size in either yen or dollars in order to make quota before they get on the payroll. EMF Holdings Inc. Fedman Bldg, Salcedo St. Makati City 802-A Keppel Tower Cebu Business Park, Cebu City, Philippines EMF Investment Ltd Unit 1808 One International Finance Center, HK EMF HOLDINGS, INC. RRN20020726083651362 EMF HOLDINGS, INC. RRN20020726085816947 EMF MULTI-SYSTEM MANAGEMENT AND HOLDINGS CORPORATION, RRN02169101937 Siphon Tap Turned Off CA - 111503 - UnionTrib - A federal jury yesterday convicted two San Diego men on charges of mail and wire fraud related to an apparent Ponzi scheme the pair operated out of La Jolla offices. William F. McCray and Paul Yates were indicted in August 2000 on charges that they lured the public to invest 30 million in International Forex and Earthwise International . two firms that purportedly traded foreign currency. Prosecutors said the two solicited clients with fraudulent claims of high annual returns on these currency trading accounts and falsely told investors their funds were insured and held in trust with a bank. In addition, prosecutors said they told victims who invested that their accounts were earning substantial positive returns, when in fact they were being paid with new investor money. Prosecutors said McCray also siphoned off 5.8 million in investor money, putting it into a Bermuda bank account and using it to purchase a condominium and a luxury sports car. Yates was convicted on 12 counts of mail fraud and six counts of wire fraud. He faces up to 90 years in prison and fines of 4.5 million, prosecutors said. McCray was convicted on five counts of money laundering, two counts of filing a false tax return and one count of conspiracy to evade taxes for concealing more than 1 million in income from the Internal Revenue Service over three years. He also was found guilty of four counts of perjury for his testimony in bankruptcy proceedings for International Forex, in which he denied the company was related to Earthwise International. McCray faces a maximum sentence of 101 years in prison and fines of 10.5 billion, prosecutors said. Sentencing for the pair is scheduled for February. The jury also found that 5.8 million McCray wired to the Bermuda bank and the car were assets related to the money laundering charges. Prosecutors said this finding could lead to their forfeiture to the U. S. government. A third man charged in the scheme, Tony D. Ortega . pleaded guilty earlier this year to charges of conspiracy to evade taxes. He is scheduled to be sentenced next month. Dubai Currency Trading Scam Bust 0207 - (Gulf News) Dubai: The Dubai Financial Services Authority (DFSA) said on Thursday it has broken a global currency trading scam. The scam invited investors in Australia and Singapore to put their money in fictitious entities which claimed to be based in the Dubai International Financial Centre (DIFC). One alleged operative, who liaised with potential investors using a UAE phone number, has been arrested in Dubai. At least six fraud victims contacted the DIFC regulator, leading to a four-week investigation. quotAt this stage we cannot be certain about the size of the scam or investor losses, but we know that approximately 600,000 has passed through a bank account set up by these fraudsters in Malaysia, quot DFSA chief executive David Knott said. The probe was conducted by DFSA and with the Emirates Securities and Commodities Authority and involved market regulators from Malaysia, Britain, the US and Singapore. The racket operated three fictitious entities called the Dubai Options Exchange, the UAE Commodities Futures Board and Cambridge Capital Trading. All claimed to offer services within the DIFC. The fraudsters used a US-based internet service provider. Australian and Singaporean investors were cold called by representatives of Cambridge Capital Trading to take options on currency movements. The investors were then directed to the false websites and told to transfer funds into the bank account in Malaysia. Florida is fertile for foreign currency fraud 0206 - When investigators from the Commodities Futures Trading Commission looked into Lazaro Jose Rodriguezs bank accounts, they said they found that in a single month he had withdrawn customer trading funds to spend 173,251 on two Chevrolet Corvettes. In a separate case, the CFTC in December sued a Coral Springs man and the companies he ran, alleging they had fraudulently taken 14 million from at least 140 people by falsely claiming they made large profits trading foreign currency futures. Commodities fraud, a growing problem in South Florida and across the nation, will be a topic of debate when industry leaders meet at the Futures Industry Associations annual conference next month in Boca Raton. Though there are no reliable statistics on commodities fraud by geographic region, and many cases include suspects from different areas, the industry consensus is that South Florida outpaces the rest of the nation. quotThe combination of numerous palm trees, roguish telemarketers, phone banks, rich retirees, telemarketing defense lawyers, and South Floridas close proximity to foreign jurisdictions makes it a magnet for those that want to earn their living with their tongue and a telephone, quot said Gregory Mocek, enforcement director for the CFTC, which polices the sale of commodity futures and options. quotPour a little Panama Jack suntan oil on the situation and you have a perfect environment where investors get burned. quot In a suit filed earlier this month, the CFTC alleged that Miami-based Rodriguez had burned about 400 investors for a total of 1.5 million after promising them 300 percent trading profits. Rodriguez could not be reached for comment. Among the trends the CFTC is finding in South Florida: Trading operations are overcharging customers by requiring them to pay both a commission and a so-called spread, essentially another commission. Some boiler rooms have started to seek investors for gold, which is attractive because it has risen 26 percent in the past year. With the growth of the Internet, regulators also are seeing more online trading operations offering illegal foreign exchange contracts and then misusing the investments they receive, Mocek said. Some industry experts say South Floridas history as a hotbed for telemarketing boiler rooms makes it easy for fraudsters to move quickly into commodities such as currencies when the market gets hot. quotSouth Florida was the commodities options fraud capital of the world in the early to mid-1980s, quot said Robert Wayne Pearce, a Boca Raton lawyer specializing in commodities and stock law. In the 1990s, federal and state officials cracked down on boiler rooms, and the commodities markets quieted as investors shifted money into the stock market. But with the prices of commodities such as gold, oil, copper and platinum rising sharply in the past year, investors have become more interested in the esoteric world of futures and options trading. quotThat gives opportunities to the hucksters out there, quot Pearce said. One good indicator, though unscientific, is that advertisements for training in commodities trading are starting to appear more frequently in newspapers and other media outlets, he said. Commodities are physical goods, such as metals, foods, grains and currencies. An investor usually buys them through a futures contract, an agreement to buy or sell a set amount of a commodity at a predetermined time. A futures contract is an obligation to the buyer and seller. An options contract is different in that it is an obligation only to the seller. Nationwide, the CFTC has gathered about 300 million in restitution and penalties in 85 cases in the past five years, Mocek said. About 24,000 people were victims in those cases. But John Damgard, president of the Futures Industry Association, thinks the penalties -- typically suspensions, fines or banishment from the industry -- arent harsh enough. The biggest problem is not the firms that trade on exchanges, but criminals running quotstorefrontsquot that pretend to be legitimate, Damgard said. In South Florida, the CFTC needs to work more closely with law enforcement officials and the state attorneys office to ensure that offenders go to jail, he said. The CFTC doesnt have that authority. quotIts a cruel hoax to make the CFTC the lead agency in putting these guys in the slammer, quot Damgard said. He would like to see a state prosecutor in Florida quotmake an examplequot of fraudsters the way New York Attorney General Eliot Spitzer challenged Wall Street firms in court. Mocek said the CFTC opened an Office of Cooperative Enforcement more than three years ago and has been collaborating with the FBI, state attorney general offices and local prosecutors. But Mocek knows that as long as the weather is agreeable, commodities fraudsters will make South Florida home. quotThere are a number of people, quot he said, quotwho would rather do it from a warm spot rather than sit on an icecap. quot Restitution ordered in foreign currency investment fraud case 0306 - Florida - Seventy victims in an investment scam may get a chance to recoup their losses. Attorney General Charlie Crist, Friday, said David Alan Luger, of Boca Raton, has been ordered to pay 2.2 million in restitution to victims of what the state called a multimillion-dollar investment fraud. Luger was also ordered to serve 13 years in prison. He was convicted in a case prosecuted by Crists Office of Statewide Prosecution. Luger, who was prosecuted for management roles in what the state called several boiler room operations, ran what prosecutors called an investment fraud ring that victimized elderly Floridians, promising high returns in the foreign currency market. Instead of investing the funds, prosecutors argued Luger and an accomplice kept the money for their personal use. The state said many of Lugers victims lost their retirement savings to the scam. The boiler rooms operated from 1999 to 2003 under the business names USFX Corp. and Worldwide Forex Corp. Luger was arrested in 2001 for his role in the scam, but then prosecutors said he started another operation, called Group 24, while serving house arrest in Boca Raton. The state said an accomplice is currently an international fugitive. quotThose who steal from our senior citizens for their personal gain will be prosecuted to the fullest extent of the law, quot Crist said. quotFloridians can rest assured they will be protected from these unscrupulous characters. quot The Boca Raton Police Department and the Broward County Sheriffs Office conducted the investigation. Luger was convicted in January on counts of racketeering, grand theft, fraudulent transactions and telemarketing fraud. Palm Beach Circuit Judge Krista Marx sentenced Luger yesterday. South Florida Business Journal Richmond man faces up to 120 years for foreign currency school fraud scheme 1206 - (AP) RICHMOND, Va. -- A 22-year-old Richmond man accused of cheating more than 350 investors out of about 8.3 million pleaded guilty Wednesday to mail fraud and money laundering. James E. Brown Jr. faces a maximum of 120 years in prison and fines of up to 16 million on each count when he is sentenced March 14 by U. S. District Judge Richard Williams, according to federal prosecutors. Brown was arrested in September after an investigation by the FBI, the U. S. Postal Inspection Service and the Internal Revenue Service. Authorities charged that Brown, owner and president of Brown Investment Services, promised investors he could double their money every 30 business days through trading on the Foreign Currency Exchange Market. The investment program, which Brown promoted at classes and seminars, was bogus. Little of the money was invested, and Brown paid early investors with cash coming in from subsequent investors to lull them into believing the investments were paying off as promised. Brown used the money to finance a lavish lifestyle, including a 2.9 million fleet of luxury automobiles for himself and his employees. According to prosecutors, of the 8.3 million Brown obtained from investors, he only invested 484,000 in the foreign currency market, losing about 61,000. Only about 700,000 remained in the companys bank account when Brown was arrested. Forex trading educational center taught victims how to lose money 0807 - California - Joel Nathan Ward, 48, of Turlock, has pleaded guilty to charges related to swindling millions of dollars out of trusting investors. Mr. Ward, a frequent commentator and seminar speaker on foreign currency exchange (8220forex8221) trading, ran an elaborate scam through two of his companies, the Joel Nathan Forex Investment Group of Turlock and Learn: Forex Inc. a forex trading educational center based in Sacramento, federal prosecutors say. A federal grand jury indictment alleged that as part of the scheme, Mr. Ward offered investors the opportunity to invest in the foreign exchange interbank 8220spot8221 market through his fund, the Joel Nathan ForexFund. Many of the victims were family members, close friends, and individuals who had been enrolled in the Learn: Forex program, either in Sacramento or through online classes. Mr. Ward required a minimum 50,000 investment, and told investors they could anticipate significant returns. The indictment also charged Mr. Ward with defrauding investors in a second scheme relating to a purported real estate investment project in Mississippi. He was alleged to have simply diverted investors funds to his own use. In pleading guilty Friday, Mr. Ward admitted that he stole the investors8217 funds, using the money for his own compensation and expenses, and to purchase the Learn: Forex School in Sacramento. He also admitted that in order to conceal the theft, he made 8220Ponzi8221 payments using other investors8217 funds and provided his investors with altered account statements. The scheme collapsed in November 2006. The investor victims lost over 7 million. quotWard used his self-proclaimed expertise in foreign currency trading to steal millions of dollars from family, friends, employees, and other investors. While he claimed to be a highly successful trader, in fact he was merely a thief,8221 says U. S. Attorney McGregor Scott. The guilty pleas were entered to five counts of wire fraud, two counts of mail fraud, and two counts of engaging in monetary transactions in property derived from specified unlawful activity, a form of money laundering, according to Assistant U. S. Attorneys Benjamin Wagner and Ellen Endrizzi, who are prosecuting the case. There was no plea agreement in the case, and Mr. Ward is to be sentenced Nov. 2. The maximum penalty under federal law for each offense of wire fraud and mail fraud is 20 years8217 imprisonment, a three-year term of supervised release, and a 250,000 fine. The maximum penalty for each offense of money laundering is ten years8217 imprisonment, a three-year term of supervised release, and a 250,000 fine. However, the actual sentence will be determined at the discretion of the court after consideration of the advisory Federal Sentencing Guidelines, which take into account a number of variables, and any applicable statutory sentencing factors. Central Valley Business Times Commodity Futures Trading Commission warns of a rise in foreign-currency trading scams. 0306 - They reach people, often retirees, through cold calls and television commercials. And they likely made off with 1 billion of stolen money in the last five years. Foreign-currency trading scam artists, thanks to their growing numbers, are the target of increased enforcement and education efforts by federal regulators. And a disproportionate number of them seem to have set up camp in South Florida, said Reuben Jeffery, chair of the U. S. Commodity Futures Trading Commission, at the Boca Raton Resort amp Club. Jeffery and other CFTC regulators said the Futures Industry Association has created a task force to attack the fraud problem that plagues the foreign-currency markets, which trade an average of 1 trillion a day. quotMost forex dealers are legitimate. But there are a growing number of scam artists, quot CFTC Commissioner Michae Dunn said. quotIts a black mark on the entire industry. quot He said scam artists have ripped off tens of thousands of Americans of all ages, though they primarily target retirees. In the 87 cases the CFTC has filed in federal court in the last five years alleging foreign-currency fraud, investors have lost a total of 380 million. Dunn estimates that investors lost 1 billion in that time to foreign-currency fraud. quotWeve got stories of people suffering from dementia and get these cold calls, quot said Dunn said. quotThere are also some very, very bright people who get scammed. quot With foreign-currency trading, investors buy currencies on the open market. They hope the currency theyre buying will rise in value more than the currency theyre using to buy it. The CFTC is working with state and local authorities to step up investigations and prosecutions in fraud cases. It is also trying to educate the public through an informational brochure, partnerships with consumer groups and town hall-style meetings hosted with the National Futures Association. The message, in large part, is that investors should be wary of unlicensed brokers offering deals that sound too good to be true. Investors should avoid high-pressure sales, confusing investments and brokers who encourage them to mortgage their home or cash out their retirement savings. Dunn also encouraged people whove been cheated to spread the word about fraud among their friends and neighbors. quotIm always amazed people are being defrauded and they dont tell anybody about it, quot he said. quotWe had a whole community ripped off that way. quot Investors who suspect fraud or want more information can visit cftc. gov. The National Futures Associations website, nfa. futures. org, also allows people to run background checks on brokers. Palm Beach Post Man given prison time in currency fund scam 0106 - California - A San Diego man was sentenced yesterday to five months in prison and five months house arrest for his part in a multimillion-dollar scam centered on a bogus foreign currency fund. Stephen Baere, who worked for Richard Robert Matthews at the La Jolla-based White Pine Trust Corp. was sentenced by San Diego federal Judge Jeffrey Miller. Baere is to surrender to federal authorities March 27. Matthews admitted last April to soliciting 22 million from 247 investors between 2000 and 2004 and then absconding with much of the money, according to court filings. He pleaded guilty to one count of mail fraud and was sentenced in December to more than five years in prison. He also was ordered to pay back more than 14.7 million to investors in the United States and abroad. Baere admitted to prosecutors in June that he misled hundreds of investors, but he said yesterday through his lawyer that he was unaware that the fund was bogus and that Matthews was making off with clients money. 8220He had no idea what Matthews was doing, and he was crushed when he found out,8221 said Colin Murray, Baeres attorney. Baere, who pleaded guilty to one count of conspiracy to commit mail fraud, told prosecutors that he worked for Matthews between January 2002 and December 2003. During that time, Baere told prosecutors that he gained between 400,000 and 1 million. In addition to the prison time, Miller yesterday ordered Baere to pay 600,000 in restitution. Tyler Zollinger, also associated with White Pine, is scheduled to be sentenced in February. Scammed forex investors may get some of their money back from crooks 0807 - About 100 investors in a securities scam 8211 most of them from Texas 8211 are a step closer to getting some of their money back after a court granted a summary judgment against the architect of the scam, the Securities and Exchange Commission said Thursday. U. S. District Judge Jane Boyle last week ordered Gerald Leo Rogers of Seattle to return 11 million and pay a fine of 120,000. In 2005, the court froze the assets of Mr. Rogers and his companies, Premium Investment Corp. TriForex International Ltd. and InForex Ltd. According to the SEC, Mr. Rogers is a twice-convicted felon whose criminal and securities fraud history spans nearly four decades. He started his latest scheme in 2004, shortly after being paroled from a 35-year prison sentence, the SEC said. According to the SEC, Mr. Rogers hired 140 sales agents to target mostly retirees with promises of quotguaranteed profitsquot and quotsafety of principalquot in covered-call options in foreign currency trading. quotRather than investing in these safe, covered-call transactions, Rogers, who believes hes a financial genius, invested millions of dollars in speculative trades, quot said Jeff Norris, the trial attorney for the Fort Worth SEC office in the case. quotIts one of the most clever and diabolical schemes that Ive seen, because Rogers created a program that made it extremely difficult for investors and even brokers to do due diligence, because everything was taking place overseas. quot Mr. Rogers parole has been revoked, and the 72-year-old is back in prison until 2015, according to the Bureau of Prisons Web site. The summary judgment should clear the way for the court-appointed receiver to start returning some of the victims money. quotIt looks like about 40 cents on the dollar, which is not really badquot in a case like this, Mr. Norris said. quotIf we hadnt caught this when we did, it could all have been gone. quot Dallas Morning News Forex Fraud Nets Conman Jail Time NEW YORK - 0208 - A New York man was sentenced to more than 12 years in prison Friday in connection with a foreign currency exchange scam that bilked more than 200 investors out of 6.5 million. The U. S. Attorneys office in Manhattan said Boris Shuster, also known as quotRobert Shuster, quot was sentenced to 150 months in prison at a hearing in U. S. District Court in Manhattan. U. S. District Judge Victor Marrero also ordered Shuster to forfeit 7.89 million and pay a 10,000 fine. Shuster, guiltyleaded guilty to conspiracy, 14 counts of wire fraud and 13 counts of mail fraud last June. Prosecutors had sought a sentence of 235 months to 293 months in prison, said Sarita Kedia, Shusters lawyer. quotWe do plan to appeal, quot Kedia said. Shuster was previously sentenced to 60 months in prison after pleading guilty to criminal charges in a separate forex scam in federal court in Brooklyn. He had remained free pending his sentencing in federal court in Manhattan, Kedia said. In the Manhattan case, prosecutors had alleged that Shuster and Alexander Dzedets operated a fraudulent forex firm named Holston, Young, Parker amp Associates in Manhattan. Dzedets, 32, and nine others have pleaded guilty to criminal charges in the quotboiler roomquot scheme, prosecutors said. Employees of the firm allegedly used false and misleading sales pitches and high-pressure sales tactics to convince people to invest in its purported forex trading program, the government said. Funds raised werent used to invest in the forex market, but were instead diverted to bank accounts in Cyprus and Russia, prosecutors said. The Refco Case: How 75 billion evaporated. The forex business has always had its dark side. A forex scam is nothing new, and most traders are aware that trading forex necessitates a basic acceptance of the risks involved in interacting with a broker. Still, the Refco case stands out in recent history due to the size of the collapse and the number of people involved, not to mention the material and psychological damage incurred. At the time of its collapse in 2005, Refco, a New York commodity broker catering to forex traders, had about 4 billion in client assets, with liabilities reaching upwards of 75 billion. It is clear that the leverage risk taken by the managers of the firm went far beyond anything that could be considered reasonable. The fraud, however, was operated mostly by the CEO and chairman of the company, Richard Bennett, and involved creative account techniques that we have grown familiar with since the years of the bust. Mr. Bennett simply shuffled the bad debt of Refco between the company and certain hedge funds and shadow entities funded by Refcorsquos own capital. In order to prevent these bad assets of the firm from being written off, they were sold to shell companies controlled by Mr. Bennett. It was then that he abused his status as the chairman of Refco by ensuring that a continuing supply of capital flowed to the fake entities he was creating. The fraud was eventually discovered by Refco itself after a period of almost five years and resulted in the corporations Chapter 11 bankruptcy. Losses were suffered by many clients, including forex traders at FXCM, which at the time Refco held a 35 stake in. One notable feature of this scandal is the fact that Refco was a repeat offender when it came to regulatory infractions. The commodities broker was found to be in breach of several regulations at various points in time by the authorities, but clearly not enough was done to ensure future compliance through tighter oversight and enforced regulation. There are a few lessons one can derive from the Refco scandal. First, regulation is by no means a guarantee of protection against creative executives or employees perpetrating fraud. One can also note, as in the case of FXCM, that even a healthy and trusted broker may cause losses to clients if its parent company is a victim of fraud, or is being run by con-men. Next, using leverage at any unsustainable level is not a sensible practice. And finally, the status of Richard Bennett as the architect and chief perpetrator of the fraud reminds us that the declarations of a companyrsquos management about itself should by no means be taken at face value. While it is possible to gain an understanding of various trading platforms by reading through forex software reviews. even the best broker reviews and studies will not help much in anticipating a fraud. The best protection against such a devastating result is diligence and diversification. First make sure that you execute your forex trades through reputable brokers that are licensed and free of regulatory infractions. Then make sure that all your eggs arent in one basket. Only invest what you are fully prepared to lose since forex trading is highly risky. Visualize the loss of every last penny you invest rather than the untold riches you hope to gain. Just like in Vegas, money can be made, but you must fully realize that the odds are not primarily in your favor. These tips may help to ensure that your assets will not totally be wiped out even if one of your broker goes bankrupt, or commits fraud. How to spot investment scams MANILA, Philippines A few days before All Saints Day, the National Bureau of Investigation (NBI) Anti-Fraud and Action Division received an anonymous complaint about a growing investment scam in Southern Luzon. The Grand Alliance of Business Leaders Association Inc (Gabai), reported to be the marketing arm of the South Luzon Multipurpose Cooperative (SLMC), allegedly duped its investors into paying as high as P175,000 weekly for a 40 return. The local police is now investigating the matter, said NBI Senior Agent Normando Anire on Thursday, November 14. SLMCs allegedly fraudulent scheme is just one of many. Over the years, big-time swindlers have victimized unsuspecting investors with their promises of guaranteed returns. Thousands of investors lost their savings from the pyramid scams of companies Grupo Mateo Pilipinas Investors Association Inc and Multinational Telecoms Corporation, headed by Engineer Ervin Mateo and Rosario Baladjay, respectively. Mateo and Baladjay were arrested in 2003. Money lost forever More recently in 2012. complaints were filed over the P12-billion pyramid scam of Aman Futures boss Emmanuel Amalilio aka Mohammad Kamal Saaid. Anire warned that too often, victims are unable to recover their lost monies, even as they go after the scam perpetrators in court. Unfortunately, because the monies have already been spent or used as payment, I do not know of any case where monies were recovered. Usually, no money returns to the victim. So others are getting tired. Instead of filing a case, they opt to no longer do. Normando Anire, NBI Anti-Fraud and Action Division Unfortunately, dahil nga nagastos na yung mga pera na yan o kaya pinangbayad, wala ho akong nalalaman na naka-recover. Kadalasan wala nang maibabalik sa inyong pera. So napapagod na yung iba. Instead na magkaso, huwag na lang , he told the crowd. (Unfortunately, because the monies have already been spent or used as payment, I do not know of any case where monies were recovered. Usually, no money returns to the victim. So others are getting tired. Instead of filing a case, they opt to no longer do.) Anire delivered his talk before a group of 200 overseas Filipino workers (OFWs) and their family members on how to spot fraudulent investments. OFWs are often the target of investment scammers because of their liquidity or ready cash, he said. Estelle Osorio of the Biz Whiz Business Training and Consultancy was likewise present to share her expertise. Osorio is a Certified Investment Solicitor (CIS), while Biz Whiz provides seminars on financial literacy, especially pertaining to the stock market, forex trading, and bonds. The CIS explained that there are often red flags that can be observed from scam operators providing false information. Here are some of the investment tips they shared: 1. If its too good to be true, it probably is. Osorio explained that a guaranteed return is considered a red flag. She also warned against high-yielding investments. There is no such thing as a risk-free investment, Anire echoed. There is always some level of risk involved. He explained that this is due to external factors that may affect the company. 2. No business gains solely from recruitment. A business does not gain primarily or even worse solely on recruitment. Businesses capitalize on products andor services. Kung kikita sa pamamagitan lang ng pagre-recruit, bawal. (If you will gain solely through recruitment, thats not allowed.) Profit must come from the product and not from recruitment, Anire said. 4 Questions To Ask Before Investing: What is the background of the company How much do I need to invest, and how much will I get in return When will I get my return on investment How is the investment making my money grow Estelle Osorio, Certified Investment Solicitor (CIS) The problem with these types of schemes, Osorio explained through a diagram, is that they often fail when investors can no longer lure new investors. Older investors must be able to gain from profits earned out of the business itself instead of commissions from recruitment. In the end, people lose their money when newly-lured investors cash-out and the promoters run away with the money already invested. 3. Vague information may mean deceptive information. Osorio told the crowd to always probe to protect their interests. How much is the minimum placement What is the rate of return When are investments expected to return One must be on a constant information-seeking mode when looking for where to invest ones family earnings. Think twice about investing in a company that is not transparent about how profits are earned or offers vague and confusing explanations about where money is invested, Osorio said. If you dont understand how you will make money, do not invest in it, she said. Anire also advised the OFW groups not to entrust their money to just anyone, much less people they do not know. He used as example family members or personal friends who fail to pay their debts on the set date. Paano pa yung hindi mo kakilala (How much more those who you do not know) he asked rhetorically. Pinaghirapan na pera yan biglang mawawala, dahil nagtiwala kayo agadLaging nasa huli ang pagsisisi , he said. (That is hard-earned money that will just be put to waste, because you trusted too easily. Regrets always come at the end.) 4. Double-check with government data Osorio advised would-be investors to do their due diligence. She said one must look into a companys track record. Check if the company is registered with the Securities and Exchange Commission (SEC). A SEC company registration does not grant the authority to sell investment instruments such as securities, bonds, and commercial papers. For insurance products, I suggest always consult the insurance commission website. If the company is not on the list, dont buy, she said. Osorio likewise shared a few features of Internet-based Ponzi Investment Schemes, based on a SEC warning. Named after scammer Charles Ponzi, a Ponzi scheme is a fraudulent operation intended to convince the public to invest their money. It generates returns for earlier investors by tapping subsequent ones. The SEC said that Internet-based Ponzi schemes have investments in foreign currency (often US dollars), offer a huge profit in a very short period of time, have no paper trail such as contracts and receipts, provide for a lock-up period wherein an investor cannot touch hisher investment for a number of daysmonths, have unknown offices and officers, and conduct orientation seminars informally. When dealing with investment offers by phone, e-mail, flyers, newspaper ads, or directly by any person, always know the company or the person you are speaking with. Get the landline number, which can be traced, instead of a cellphone number. Anire and Osorio were invited guests in the OFW-targeted forum hosted by the Blas Ople Policy Center and Training Institute and the Villar Social Institute for Poverty Alleviation and Governance. Rappler