In recent years, investors have witnessed an increasing number of investment opportunities and offerings. While the complexity and success of these investment products vary, technological innovation has made the currency market the fastest growing areas. Many of the leading Forex brokers reported up to 500% increase in the number of new retail customers. However, the Forex market growth has been accompanied by a sharp increase in foreign currency trading scams. Many of these Forex scams are promoted on the radio, television, newspapers and the Internet.
Investors who are victims of these schemes, often lose all their money. As an example, let's examine the facts of a recent case involving Forex fraud and its consequences. W knowledge of an opportunity for foreign exchange trading through an infomercial on the radio. K, the owner of an asset management company of the currency, spoke during the infomercial, promising viewers significant profits with minimum risk. After seeing the infomercial, W contacted K, and later attended a seminar presented by K and his firm. The seminar was so convincing that W wrote a check to K for $ 100,000.
Several months later, W received statements (which were false) the signature of K reflects a significant return on their initial investment of $ 100,000. Thereafter, W attended another seminar and decided to invest more money. W took a loan and invested another $ 800,000 in K's Forex trading operation. Shortly after W's second investment, the Securities and Exchange Commission filed a complaint against K and his firm to participate in a scheme to defraud investors.