Scams And Fraud In Forex: How Attorneys In San Antonio Can Protect You

Scams And Fraud In Forex: How Attorneys In San Antonio Can Protect You – According to Ponzitracker, there is a significant increase in Ponzi schemes in 2022 from last year. The website, which tracks data on these fraudulent schemes, predicts that the number will drop by almost 50% in 2021 compared to 2019, apparently due to the Covid-19 pandemic. However, scammers seem to be jumping into the game.

A Ponzi scheme is an investment scam that deceptively offers high rates of return with little risk to investors. Ponzi schemes, similar to pyramid schemes, generate returns for early investors by getting new investors.

Scams And Fraud In Forex: How Attorneys In San Antonio Can Protect You

In history, the three largest Ponzi schemes were exposed during the 2008 financial crisis, including Bernie Madoff, who defrauded 65 billion dollars from unsuspecting investors, Thomas Petters with 3.7 billion dollars and Allen Stanford with 8 billion dollars.

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Both Ponzi schemes and pyramid schemes are fraudulent investment schemes that rely on continually recruiting new investors to generate returns for previous investors. However, there are some important differences between the two.

Ponzi schemes are named after Charles Ponzi, who became famous for using this method in the early 20th century. In Ponzi schemes, fraudsters promise investors high returns on their investments and pay those returns using money invested by later investors. There is no real investment or business generating returns, and the project relies only on constantly recruiting new investors to keep it going. Eventually, when no new investors come in to apply, the project collapses, and investors lose money.

On the other hand, a pyramid scheme is a similar fraudulent investment scheme, but the structure is slightly different. In a pyramid scheme, investors are required to pay a fee to participate, and they are promised the opportunity to earn by recruiting new investors themselves. The more people they recruit, the more money they can make. However, pyramid schemes often do not offer real products or services to sell, and the main focus is on recruiting new investors. Like a Ponzi scheme, when there are no more new investors, the scheme will collapse, and most investors will lose their money.

While both Ponzi and pyramid schemes rely on recruiting new investors to generate returns for previous investors, Ponzi schemes promise high returns on non-existent investments, while pyramid schemes require investors to pay a fee to participate and focus on recruitment. of new investors to generate profit.

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White Law Group has represented numerous investors over the years who were defrauded by their brokers through various Ponzi schemes. The following are some examples of projects that the company has investigated.

The White Law Group has handled numerous claims for investors who lost their pensions after investing in future payment, cash-structured investments that turned out to be a $310 million Ponzi-scheme.

The CEO and principal of Future Income Payments LLC (FIP), formerly known as Pensions, Annuities, and Settlement LLC, was sentenced to 10 years in prison in August 2022 after pleading guilty to conspiracy to defraud.

The CEO of FIP and his accomplices are accused of soliciting financially distressed retirees, mostly veterans, by offering lump sums in advance in exchange for ceding their rights to monthly pensions and disability benefits. Although the assignment transaction is characterized as a “sale”, in fact, a usurious loan with an annual interest rate of up to 240%.

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Using a network of hundreds of financial advisors and insurance agents across the country, the CEO and others urged thousands of seniors to buy “structured cash flow,” FIP’s, which are monthly pensions for retirees. After 7 years of living lavishly, the CEO’s scheme collapsed, costing $310 million. The United States has provided loans to more than 2,500 retirees and more than 13,000 veterans.

Former financial advisor Matthew Eckstein was sentenced in July 2022 to 10 and a half years in prison for his role in a $12 million Ponzi scheme that targeted nearly 50 victims—many of them elderly—between 2015 and 2017. Nearly $5.6. Millions were returned to investors.

Eckstein initially pleaded guilty to the charges on September 26, 2019, but later withdrew the plea. A new indictment was secured in August 2020, but court closures related to the Covid-19 outbreak delayed the case further.

While working as a financial advisor in Syosset, NY, Eckstein reportedly encouraged most of his clients to invest thousands of dollars in an insurance company called Conmac Funding, allegedly saying that after two years they would get their money back plus an additional 4 percent. interest, according to court records.

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Instead of investing in the Conmac fund, prosecutors said Eckstein used it to pay personal expenses and pay other victims of the scheme.

On April 18, 2022, the SEC filed an emergency lawsuit and charged financial advisor, Shawn Good with defrauding clients and defrauding investors of millions of dollars.

Well, from Wilmington, NC, is accused of raising at least $4.8 million from five of his clients at Morgan Stanley to make low-risk investments in tax-free bonds and land development projects. Clients include retirees and single mothers of young children. Instead of investing the money, however, the SEC alleges that Good used the money to pay back other victims and pay for his personal expenses, including luxury cars, international travel, and about $800,000 in credit card bills.

Former investment fund manager Brenda Smith, 61, of Philadelphia, was reportedly sentenced on May 4, 2022, to 109 months in prison for a $100 million Ponzi scheme.

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Smith manages and controls Broad Reach Capital LP, a mutual fund/hedge fund established in February 2016 and open to accredited investors.

As reported, from February 2016 to August 2019, Smith reportedly promised investors 30% per year through sophisticated trading strategies involving highly liquid securities.

Smith claimed to have used the money to buy his own investments and repay other investors, instead of investing the funds as promised and was accused of distributing false documents in July through Broad River, reportedly valuing his assets at $180 million.

Regulators are focusing on cryptocurrency and digital assets, which have come under a lot of pressure as the total cryptocurrency market is reported to have increased from more than $2 trillion in January 2022 to about $800 billion in November.

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According to Ponzitracker, several fraud schemes caught in 2022 involved cryptocurrency assets. At least five different alleged projects are related to or based on cryptocurrency assets, including actions related to allegedly fraudulent exchanges, mining platforms, trading, and investment funds.

In May 2022, the Department of Justice charged the leader of a cryptocurrency and forex trading platform named EminiFX, with product fraud and wire fraud offenses. The CEO solicited more than $59 million from hundreds of individual investors after misrepresenting the EminiFX trading platform.

In March of 2022, the United States Attorney’s Office in Brooklyn charged the owners and operators of virtual currency companies on the web EmpowerCoin, ECoinPlus and Jet-Coin, with conspiracy to defraud and money laundering, in connection with a complex scheme to steal assets. from investors. In total, EmpowerCoin, ECoinPlus and Jet-Coin received more than 40 million dollars from investors.

As alleged, websites for EmpowerCoin, ECoinPlus and Jet-Coin were fraudulently promising investors and potential investors guaranteed returns on virtual currency investments. They have falsely promised investors and potential investors that these returns are possible through foreign virtual currency trading operations. Investors and potential investors are encouraged to invest in companies with cash or Bitcoin. The property was used to repay other investors or simply stolen, including by the third owner, According to the complaint. The company collapsed shortly after receiving the investor’s assets, without engaging in commercial activities.

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It is important to note that just one or more of these red flags does not necessarily mean that the investment opportunity is a Ponzi scheme. However, investors should be careful and do their research before investing their money.

When brokers violate securities laws, such as making improper investments, the brokerage firm they are working for may be held liable for investment losses through FINRA arbitration.

If your broker has defrauded you, you may be able to file a claim with FINRA to seek redress through arbitration. FINRA arbitration can be a complex and technical process, and having an experienced attorney with knowledge of securities law can greatly increase your chances of success.

Securities attorneys, such as those at White Law Group, can assist you in many aspects of the arbitration process including evaluating the merits of your claim and determining whether you have a strong case for arbitration.

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Your attorney can help you draft a statement of claim that accurately reflects the allegations of fraud and the damages you are seeking. They will also represent you in arbitration, present evidence and do Give an argument on your behalf.

They can also negotiate a settlement on your behalf, which may be an option to consider before going to court.

Working with a securities attorney can help ensure that your interests are protected throughout the FINRA adjudication process,

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