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Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it charged Willie L. Cloud, Jr. and his investment company, C & R Financial, Inc., both of Houston, Texas, with operating a Ponzi scheme in connection with foreign currency (forex) trading.
The CFTC’s complaint, filed on March 4, 2010, alleges that, since at [...]

With all the 1:10 leverage turmoil happening lately we shouldn’t forget that NFA/CFTC are the only retail forex watchdogs in the US. From time to time the agencies perform well in uncovering forex frauds and in shutting down problematic businesses.
A few days ago NFA cracked on quite a few CTAs which lost millions of clients [...]

More than 700 people stand to lose more than R200 million in investments after an investigation into the southern Cape-based Minne Trading investment scheme found it to be operating illegally.
The Registrar of Banks appointed auditing firm Deloitte to determine whether the company and two individuals, Graeme and Caroline Minne, were conducting the business of a [...]

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a consent order against Michael Kourmolis, of Brooklyn, N.Y., permanently prohibiting him from engaging in any activity related to trading any commodity interests, including soliciting funds, registering with the CFTC and trading on behalf of others or himself.
The court’s order, [...]

Court appoints a receiver to indentify assets and funds owed customers
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced it obtained an emergency court order freezing assets held by defendants M25 Investments, Inc., M37 Investments, LLC, Scott P. Kear, Sr., Jeffrey L. Lyon, all of Waxahachie, Tex., and David G. Seaman, of [...]

Court freezes funds held by Janet Schaberg, the ex-wife of the alleged operator of $1.3 billion investment scam
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained an order freezing $7.6 million in assets held by Janet Schaberg, the ex-wife of Stephen Walsh of Sands Point, New York.
The order, entered [...]

Only yesterday I reported about an ongoing investigation of an alleged Forez Ponzi scheme in Saratosa, US and today one of our readers brought the existence of another investigation to my attention – this time in Australia (thanks fxboy).
The details are scarce but Australian Investor Daily reports that a group of more than 20 investors are [...]

Couple of weeks ago Herald Tribune reported that a Saratosa company  Diamond Ventures LLC is being the subject of both lawsuit by disillusioned investors and an FBI and CFTC investigation.
Both the father,Diet guru Harvey Diamond, who wrote “Fit for Life”,  and Beau Diamond his 31-year-old son are in the hot seat over a foreign currency futures trading program [...]

Looks like Forex is in the center of several frauds and irregularities worldwide and that the amounts involved are increasing. This certainly doesn’t contribute to the credibility of the Forex industry as a whole:
In Nigeria:
The Central Bank (CBN) will, this week, withdraw the foreign exchange authorized dealership of three banks and suspend them from the [...]

I’m constantly trying to warn naive (and sometimes the most sophisticated) investors that people promising unthinkable returns but refusing to disclose all the financial details are rip off artists.  If you do not have a clear cut description/prospectus/term sheet of what products are being invested in, where the assets are being held and who is [...]