Forex Trading Ponzi Schemes

In late 2014, the Commodity Futures Trading Commission (CFTC) announced an enforcement action against 4X Solutions, Inc. and its principal Whileon Chay. They are accused of fraud and deceit in a $4.8 million forex trading Ponzi scheme. The FTC is also pursuing civil actions against iMarketsLive and iFOREX for allegedly soliciting investor information and failing to disclose its relationship with a broker.

A common trait of forex scams is the promise of large returns. While it is possible to make significant profits in the forex market, the reality is that there is always a risk involved. Unfortunately, many investors fall prey to these scams, which offer false promises of big returns with little or no risk. These schemes do not offer foolproof or guaranteed trading methods. In addition, they do not disclose the identity of their investors.

Some FOREX trading scams use the point spread based on computer manipulation. This technique involves manipulating bid-ask spreads, which reflects the commission of a back-and-forth transaction. While there are plenty of scams on the market, point spreads are often very different between brokers. This is a warning sign of a Forex trading Ponzi scheme. Luckily, the SEC has taken action against the company, and its CEO has been charged with fraud.

In order to avoid falling prey to these scams, investors should be vigilant and avoid multilevel marketing schemes that claim to provide passive income. While these companies may seem to have high-quality products, investors should beware. The vast majority of profits from FOREX trading scams comes from recruiting new members. A large percentage of the money generated from recruiting new members is then transferred to the scheme’s founders, who then disappear with the investor’s money.

The 770 Capital pyramid was based on a highly profitable affiliate program. In exchange for a monthly subscription, the broker promised its affiliates 15% of their top-up amount. The scam only lasted as long as the partnership deductions were made. Then, the pyramid collapsed and the investors lost all their money. In the meantime, a former Wasendorf employee and a broker named PFGBest were liable for $48 million in damages.

If you’re concerned about the $2 million forex trading Ponzi scheme that involved a former Wasendorf employee, it is wise to consider the NFA’s investigation. During the investigation, the CFTC discovered that Chay misappropriated $2.8 million and used it to pay off customers’ personal expenses, and to pay off his own business. This makes the Forex trading ponzi scheme a scam. If you’re considering investing in this type of service, make sure you check if the company is registered with the FCA.

It’s important to remember that there are several types of forex trading Ponzi schemes. The most popular ones involve a broker’s commission. While a broker’s commission will depend on whether the affiliate remains a member for a certain number of months, the profits earned from the recruitment process are short-term. A trader can make money in the forex market by referring clients. But that doesn’t mean it’s a good idea.

If you’re looking to invest in Forex, you should know your options. A forex ponzi scheme is a fraud that involves a large number of investors and requires large sums of money. If you’re involved in such a scam, you should be aware of the risks and be wary of your broker. If you’re unsure of the risks, contact the Securities and Exchange Commission (SEC) immediately.

Forex trading is a legal business, and it’s not a Ponzi scheme. The word ‘ponzi’ refers to a fraud where the initial investor is paid from the profits of other investors. However, HYIPs are similar to Forex scams because they are based on promises of high returns for minimal risk. They usually offer bonuses and other incentives to entice people to invest. There are also a large number of scammers operating on social media.

The court found that the Forex ponzi scheme was illegal. It defrauded investors by allowing the participants to buy more products and services. The scheme also required the participants to pay fees. In the end, the resulting profit is not shared. This is why the forex ponzi scheme is not a real business. It’s not a legitimate business. It’s a ponzi scheme.