A BEER SCAM??????????......
Posted on 01/31/2006 10:15:43 AM PST by sully777
NEW YORK (CNN/Money) - Authorities announced charges Wednesday against 47 people, including traders from some of Wall Street's best-known firms, in a foreign currency trading scandal that officials say defrauded investors of millions of dollars...[snip]
Meanwhile, the Securities and Exchange Commission also filed separate charges of fraud in federal court against Wall Street currency trader United Currency Group Inc. and its CEO, Adam Swickle, Wednesday...[snip]
The defendants, he said, were part of the multimillion-dollar scheme that spanned all levels of the currency-trading market, from top traders down to "boiler-room operations," where financial professionals make phone calls to solicit individual investors... [snip]
The scheme, known among the defendants as "the game" or "points for cash," involved bogus currency trades that included kickbacks paid to those who arranged them, Comey said...[snip]
In some cases the improper trades were converted into cash that would be delivered to people in diners, he said. [snip]
NBC reported the defendants scammed retail investors into thinking they were buying multimillion-dollar foreign-exchange trades when it is not possible for those types of investors to participate in such deals...[snip]
Also Wednesday, the SEC charged United Currency Group Inc. and its chief executive officer, Adam Swickle, of raising the money by selling $700,000 of worthless stock the firm to 21 investors, then pocketing the proceeds...He set up the "purported currency trading firm'' in January 2001, the complaint said.
The SEC said Swickle also lied about his own qualifications and experience in a private placement memoranda which "described (him) as a sophisticated businessman with experience in mergers and acquisitions and in building a major marketing organization.'' [snip]
(Excerpt) Read more at money.cnn.com ...
One employee is a middle-aged man working two lower-income jobs. He claims he bought his seminar DVDs and computers to run his at-home Forex accounts for a cool $5,000 start-up cost. He said he borrowed additional upfront seed money for investing in the market. He was elated that he made $50 in the morning while he slept. He enthusiastically stated, "You can bet on currencies." Then he added, "Even Warren Buffett and Lee Ioccoca play Forex!"
He received a call as he was pontificating the virtues of this gold mine. It was his friend with some bad news. "Next time call me when you have good news about my Forex," ended his conversation. Apparently, the guy lost his morning winnings. But he wasn't worried, the seminar told him what to do to make up the shortfall.
I decided to investigate his version of Forex. I found that the FBI and SEC have been investigating these scams for decades:
http://www.fbi.gov/pressrel/pressrel03/nickel111903.htm
I guess this is a matter of buyer beware. I feel bad for the poor sap that has lost thousands. I felt this update alerts FReepers that there is a scam out there that seems legit because big name brokerage firm employees are blowing and going...with your money.
Sorry, here is the link to the FBI / SEC probe called Operation Wooden Nickel
http://www.fbi.gov/pressrel/pressrel03/nickel111903.htm
There's an old saying in the business, and it has never failed me: "Just before God makes you greedy, he makes you stupid."
My God, people do such stupid things when they taste the money. It will never change, however.
The Forex is very fast moving and you HAVE to watch your own money very, very carefully. Be careful out there.
A BEER SCAM??????????......
Don't drink and buy..........
"I bought my computer from my friend in Forex for a couple thousand. He says I'll have to buy a new one every year to keep up with technology" Ping
The Forex scam is back on radar and getting someone rich quick..but not this poor sap. Just damn.
Don't drink and buy..........
Jeez, when are people going to learn that whenever a stock broker calls with a "hot tip" it means that he needs to sell it in order to get a commission.
Oh, I thought this was a condom fraud - never mind...
U.S. charges 47 in Forex probe
Oh, I thought this was a condom fraud - never mind...
Isn't there a brand of condoms named Fourex or something like that? They should have used one.........Practice Safe Stox......
see post #11
http://www.durex.com/cm/
Sometimes I feel like I need a full body condom listening to these hucksters.
Sorry, my mistake.
(I always thought Firestone should have made condoms - they could have used the same jingle...)
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