Home Forex Articles Forex Ponzi schemes are still thriving in America! Are you a victim? Yes, there are stock, real estate, and commodity losses galore, but a major portion of the pain can also be attributed to clever foreign exchange con jobs that are slowly making their way through the criminal justice system at present. As soon as the details hit the press, a new cadre of copycat con artists hits the streets, using the same playbook that worked before for others.

Greed and the desire to get rich quick drive many Americans to buy in early to the marketing spiel that high returns are guaranteed and a sure thing. Crimes in forex fraud in may have had smaller loss values, but modern crooks are learning to fly beneath the radar, so to speak.

We have chosen below three high-profile cases that entered the court system in His five-year heist was uncovered after the Great Recession forced his investors to scream for immediate withdrawals. The requests were ignored. Complaints were filed, and then arrests commenced. The defendants have been sentenced, although a few are still appealing, but investor reparations remain in doubt.

In each example, you need to note how quickly trust and respect are established, either by reputation in the community or through slick videos or presentations.

Fundraising began in earnest in Their plan was so safe that there was no risk of loss of principal, and withdrawal requests would be handled promptly at all times. Many duped investors put their life savings into supposedly segregated accounts, but funds were commingled and distributed to a series of shell corporations.

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Most modern crooks eliminate this activity. The whereabouts of the remaining funds have yet to be determined.

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Authorities have had a hard time believing that the preacher alone prepared such sophisticated materials for his Ponzi scam. Many individuals were persuaded to take out loans on their homes and now face foreclosure. The lesson is simple: Beware of ridiculous returns that are presented to you by someone of trust in your community. Since he came from law enforcement, he was smart enough to keep his fundraising tactics to a modest scale to avoid early detection.

Hawkins soon got cold feet, as his actual returns went south. Once again, whom can you trust? If not law enforcement, then whom? If a man of the cloth or of the law cannot be trusted, then what about an ex-serviceman?

Once again, the affinity angle was used to gain trust at the front end of the bilking process. He claimed to have been a former naval aviator with combat experience to gain trust, but officials have found no record of his service. Beware of ex-servicemen bearing gifts.

Ponzi schemes are alive and well in America, especially in the field of foreign exchange, and these examples are, perhaps, only a handful of the ones that have gone undetected. You can be assured that there are many more operating, perhaps, even in your own community.

The amounts that we have witnessed in these three examples may seem modest when compared to the Trevor Cook caper, but this lower-amount profile might be disguising a much broader phenomenon.

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Authorities will be sorting through the rubble for decades before any reparations are made. After fines and court costs, investors rarely see as much as 20 cents on the dollar, but hope does spring eternal. Ironically, you instantly become a defendant in a case where you had been victimized.

Are you involved with a fund manager at present? Are you sure that everything is on the up and up? How were you initially approached? Was it through a member of your family, a trusted friend, co-worker, or other intermediary in the community that you trust?

Have you been promised outrageous returns at no risk to principal? Remember to always be skeptical and that you are your first and last line of defense against fraud!

Your invested capital is at significant risk. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.

Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services.

Past performance is no indication or guarantee of future performance.

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