de | cn | ru

Market News

US court orders forex scammer from Texas to pay almost $3 million

Aug 01 2019
By
Jonathan Smith

 

US Federal Court ordered defendant Kelvin O. Ramirez to pay nearly $3 million after he was found guilty of fraudulently soliciting and misappropriating funds from clients in a forex trading scheme, as announced by the US Commodity Futures Trading Commission (CFTC) in mid-July.

 

Back in February, the CFTC charged Texas-based forex trader of investment fraud, misappropriation, and issuing false statements made primarily through social media, including Instagram and WhatsApp. As a result, the defendant is now ordered to pay a civil monetary penalty totaling $2.2 million, as well as $735,983.48 to compensate over 400 victims defrauded by him.

 

The defendant sold some sort of software that was supposed to at least double his clients’ investment for $250 per month, and advanced trading signals and other personalized trading advice for additional $25,000. Thus, his customers were deluded into the false belief that they were trading currencies through accounts managed by Ramirez, or by subscribing to his signals service. However, instead ‎of buying the contracts ordered by his customers, he ‎spent the money on company expenses, investment activities ‎and for his own personal use and benefit. ‎ He used several different names to hide his identity.  

 

In addition to the fine and compensation he has to pay, Ramirez is also permanently banned from engaging in conduct that violates the US Commodity Exchange Act.

 

The CFTC is amid the strictest financial sector regulators in the world: it requires a lot from US Forex brokers but apparently does its best to clear the field from fraudsters and the action against Ramirez is a piece of evidence for these efforts. However, the regulator cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. 

 

TAGS: CFTC  US  court order  fine  compensation  forex scam 
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Market News

$3,5 bln Bitcoin Ponzi scheme Plus Token pressures the markets

Aug 15 2019 17:42:11

The fraudsters behind the China based Ponzi scheme Plus Token are dumping bitcoins worth over 3.5 billion USD on exchanges around the globe, and that is creating a selling pressure on the markets, venture capitalist Dovey Wan warns. Read more

Spain’s CNMV blacklists EurTrades, Trade100, and Key Markets

Aug 14 2019 13:54:57

  The Comision Nacional del Mercado de Valores (CNMV) updated its warning list on Wednesday with several offshore brokers - EurTrades, Trade100, and Key Markets. These entities are not authorized to provide investment services or investment advice in Spain, the CNMV said. Read more

Former binary options broker iTrader to be indicted in Israel

Aug 13 2019 14:07:37

  Israel’s state prosecutor announced that it intends to indict the company behind former binary options broker iTrader, its owner and senior officials, on charges of aggravated fraud and providing investment advice without a license. The company Gal Media Trade Ltd. Read more

CySEC warns of fake recovery agents claiming to be its employees

Aug 12 2019 20:32:52

  The Cyprus Securities and Exchange Commission warned against fraudsters impersonating its officers who are running a recovery room scam. Read more

Aussie crypto scam worth A$2.7 million busted, five arrested

Aug 08 2019 15:46:37

  A criminal group in Gold Coast, Australia were arrested for allegedly scamming over 100 Australians with A$2.7 million in cryptocurrency investment. Read more

EtherDelta investigated for exit scam

Aug 07 2019 12:01:50

  Chinese police are reportedly taking legal action against cryptocurrency exchange EtherDelta in connection with an alleged exit scam.    The news was actually reported in a series of tweets by the ex-owner and founding partner of the exchange Dovey Wan. Read more

BaFin warns against 4xincome, orders it to cease operations

Aug 06 2019 15:44:28

  The German Federal Financial Supervisory Authority (BaFin) blacklisted unregulated forex broker 4xincome and ordered it to cease operation in the country. The regulator said that this broker offers German clients trading in forex and various CFDs thorough its website 4xincome. Read more

Thailand’s AML laws will also apply to crypto exchanges

Aug 05 2019 16:57:59

  The Secretary-General of the Thai Anti-Money Laundering Office (AMLO) stated that the existing anti-money laundering (AML) rules in Thailand will be amended as to also cover cryptocurrencies and prevent their use for illicit activities, as reported by local news media BangkokPost. Read more

ASIC warns against Alpha Financial Group, MGM Markets, and Brokerz.com

Aug 02 2019 16:06:03

  The Australian Securities and Investment Commission (ASIC) has updated its warning list today with Alpha Financial Group, MGM Markets, Brokerz.com, and several other unregulated brokers. Read more

The FCA flags several clones of Darwinex

Jul 31 2019 12:39:25

  UK's Financial Conduct Authority (FCA) alerts investors of StockotradeFX, Ultimatecryptofx, and Tradevibefx. These websites are wrongfully using the details of Darwinex – a duly licensed broker with which the abovementioned entities are not associated in any way. Read more

de | cn | ru