[MidasFX]

Most people probably don't realise just how easy it is to raise funds for trading. There are many people out there who are very willing to quickly part with their hard earned cash for the [i]chance[i]to pick up high returns. Very few go through the process of checking the credentials and actual results of the trader they entrust their money with. Perhaps they were recommended to them by a friend and are happy to take their word for it.

In a large part the investors must take responsabilty for their actions... they can't mortgage their Grandmothers home and then blame the trader for ruining her life because all her money was lost on a high risk endevour.

But the story may go deeper than this. It is quite possible that the gentleman concerned initially was a very good trader and did indeed have the results to show he was highly competent.

What happens though is that someone who is ethical and brilliant at trading say $1M can easily fall to pieces if they were to suddenly trade $30M (get too big too fast). Its like people who win tattslotto. Winning $1M does not make them a millionaire. If they have never earnt or handled a million dollars before then statistics show they will almost certainly lose it all and revert back to the income level they do have experience with.

When you are awash with cash it is very easy for your judgement to become clouded and to genuienly think that you'll just temporarily take some money from here and use it to prop up another business over here... all the time believing that everything will work out ok because the trading will turn around any day now. People (courts) who have never been in this position often have no idea how this could possibly happen and automatically believe that the actions must have been malicious. This of course doesn't make the traders decisions right or ethical and punishment certainly needs to be dealt out to remind the person never to make that mistake again... but I've seen rapists and armed bank robbers get far less than 9 years. The courts need to be very sure they have a scam artist and not just someone who messed up.