This case should be highlighted as a classic example of how NOT to get started trading. My apologies and sympathy to the claimant as I think the broker is scamming him... but new traders should take a lesson from this case...
First, NEVER, under any circumstances, fund a trading account with credit, be that a bank loan, credit cards, or other borrowed funds. Always trade with funds you can walk away from.
Second, FOREX brokers are independent market makers (unlike futures brokers). That means trades, time and sales, and "depth of market" data from one broker cannot be reliably compared to any other. In FOREX trading you are playing directly against the house (your broker), not the overall market per se.
Which leads to #3, ALWAYS investigate thoroughly any broker you intend to deal with. How, check this forum or go to
Financial Data for FCMs - CFTC and check for a broker's financial position (looking for excess capital greater than requirement, you can choose the relative amount or ratio). These would be safe, regulated brokers with strong financial balance sheets and little to gain from scamming customers.
The claimant teaches new traders the importance on one other crucial lesson... ALWAYS use stop losses! His $5,000 loss would have undoubtedly been an account blowout without the Stop Loss.
I've been trading markets since 1984 and in my opinion, FOREX is one of the more difficult markets to trade successfully on a consistent basis. The shorter the time frame, the harder it is to maintain consistency.
All that being said, lessons learned and all, I believe from the evidence presented (and lack of response from the defendant) that the broker in question is guilty of scamming the claimant.