GUILTY Case# 2011-017 | Louis F vs www.investtechfx.com

Based on the available evidence, do you believe that Investtechfx is guilty?

  • Guilty

    Votes: 116 95.9%
  • Not Guilty

    Votes: 5 4.1%

  • Total voters
    121
  • Poll closed .

Louis F

Private, 1st Class
Messages
44
Original FPA Traders Court Submission:

I am submitting the case against: www.investtechfx.com

My Case is: I have the same problem as the others. InvestTechFX is not willing to pay back money. I opened my first account at them in January, 2009. I used my self-developed EAs on my account.
Then from the profit I opened new accounts at them, altogether three. The number of the accounts became four at them. All of the accounts are in the group of EA/Scalping. I was developing my EAs while I used them. There is no difference in their function. The EAs opens a position at different places and it closes at different signs. It could be that 3 positions are opened at the same time. In 2009 I asked for money back every 2-3 month and InvestTechFX transferred. In 2010 they didn’t always want to pay back money. They promised that it is possible to ask a bigger sum in August, 2010 and back all of the money will be available in December, 2010. "Additional funds of approximately $40 000.00 will be released to you by the end of August 2010. All the funds, P/L balance, will be available for total withdrawal by the end of the year, December 31st, 2010."
I lived in hopes but it didn’t happen so. They didn’t transfer anything back in August, 2010. I had enough of this and I made an announcement at the OSC and at the BBB hoping that they could help me. It didn’t happen so. InvestTechFX started attacking me with their own lawyer that I used prohibited trading strategy because according to them I used HFT. (This prohibition was only involved in their Disclaimers in December, 2010.) Well, that was interesting to see because these EAs have already been working since January, 2009. The trouble is that you may use an any kind of strategy if you are in winning, you’ll be proclaimed for swindler certainly. Supposedly they started an international investigation against me. I paid them more than 100 000 USD commission. It was contrived that they had loss because of my tradings and now they turn to an insurance for compensation. If they really had loss it means that they don’t cover the positions. The trading positions don’t get out onto the real market. Then they aren’t a real STP company. This is like the customers only would trade on a demo platform.
If it is so why do the clients pay the commissions? Information is not given that the money, that is visible on the trading account, where is actually. Because the money is on the trading account just it isn’t possible to get it.
They say it about themselves that they are a software company but not a brokerage company. If this is so by what right do they recruit clients to trade at them? I did not find any information that they are a software company. Business Type: Trading Company, Distributor/Wholesaler, Business Service. Product/Service: FOREX.
Their philosophy is that if you make profit then you are a swindler. They love if you lose your money and then you should send more to them.

New thread in the Scam Alerts Folder:

Review is submitted by Louis on 01/04/11

The company was first contacted about the issue on 09/16/10 the last contact was on 02/17/11

Details: The Investtechfx.com can't answer my emails.

Company representatives' emails: Mike <info@investtechfx.com>, Rony <investtechfx@yahoo.com>, Steve <info@investtechfx.com>, Alan (investtechfx3@yahoo.com>

 

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Typical action for a bucketshop. If the trader is profitable, then the trader must be doing something wrong.
 
It looks something happened to the broker in 2010.
Some say they could withdraw without any problem in 2009 and possibly early 2010. Problems began later.

This makes me think the broker:

- doesn't keep customer money on separate account,
- possibly has too many small retailers while very little bigger accounts to benefit from spreads,
- has limited possibilities/skills to hedge against customer positions,
- may have issues with liquidity providers,
- possibly experienced catastrophic loss in 2010.

None of the above sounds good.
 
How long can InvestTechfx

I am really worried that how many days longer InvestTechfx could survive. If it closes, what would happen to those thousands of a/c holders? Maybe being sued by CFTC is a catalyst... But no matter what happens, justice must be served and guilty people must be punished, truth must be revealed.
 
I am really worried that how many days longer InvestTechfx could survive. If it closes, what would happen to those thousands of a/c holders? Maybe being sued by CFTC is a catalyst... But no matter what happens, justice must be served and guilty people must be punished, truth must be revealed.

What would happen is simply that all the clients money has vanished and there s no way to track where it went
 
InvestTechfx MM or STP company?

The big problem is that the InvestTechFx have a MarketMaker company. If they are the correct STP company, would not be a losses. I have a question: where is the peoples money, which there is on the trading accounts?
 
suggestion

I would suggest that everyone involved contact the city managers office of Toronto. I believe there are 3 for Toronto. Make sure you note that its their city these guys are tarnishing. Direct them to the FPA threads so they can see the publicity they will get for getting involved. I've found the local level politicians are very effective and carry big sticks when they will see how much publicity the FPA will provide. They have nothing to do all day but the same mundane bs. So if they take an interest the heavy hands will move quickly. I caution you before involving them that the chances of getting money will decrease... but you will probably get to take a tour or their closed office and visit a few of them in prison.
Good luck I hope they do the right thing.
 
I would suggest that everyone involved contact the city managers office of Toronto. I believe there are 3 for Toronto. Make sure you note that its their city these guys are tarnishing. Direct them to the FPA threads so they can see the publicity they will get for getting involved. I've found the local level politicians are very effective and carry big sticks when they will see how much publicity the FPA will provide. They have nothing to do all day but the same mundane bs. So if they take an interest the heavy hands will move quickly. I caution you before involving them that the chances of getting money will decrease... but you will probably get to take a tour or their closed office and visit a few of them in prison.
Good luck I hope they do the right thing.

Dear JRusk

I can tell you with absolute certainty that InvesttechFX has only a virtual presence in Toronto no matter how many `addresses `they have there. Same thing for the phone numbers in Hong Kong, Brasil etc.
 
Dear michelange21,
Even if that's the case they have their corporate charter issued from Toronto Canada. They operate as a Canadian corporation. That means they are governed by canadian law. The Canadian govt is responsible for overseeing police actions against them. Regardless of virtual offices or not. If you want help getting through the layers of virtual nonsense. I was only suggesting an idea for outside help. I found the city managers office of Deleware very helpful when I was dealing with a virtual office. Not to mention its against the law to have a corporation formed using a virtual office only. Somewhere on some gov't paperwork is the names of the people responsible. The CFTC was able to serve these scammers so I'm sure someone there will be happy to pass this information on especially to another politician.
Just throwing some ideas out there that's all.
 
Dear Jrusk

Forming a canadian corporation involves nothing more than filling some paperwork ( just as in Delaware I guess ). You are absolutely right to assume that the directors are, by law, under the obligation to provide their names, their business address and residential address. The problem is that there is no formal investigation done at the time the corporation is opened. Then, when a problem arises, they might lose their charter and that s about it.

Of course, a forex broker must register with the Ontario Securities Commission also ( just as, in the USA, CFTC registration is mandatory ). But those regulatory bodies get involved only when somebody attracts their attention.

You also have it right that, as soon a law enforcement agency will get involved, the odds for investors to recoup their money actually decreases.

For the satisfaction of seeing some people face justice....well you can visit the website of Telsec business center at 1 Yonge, suite 1801, in Toronto and you ll understand. Renting a virtual address there costs about 100 bucks per month. So, finding anybody working directly for InvesttechFX with only an address isn t guaranteed at all. Same thing for their other addresses. Serving them with l;egal papers would meet the same hurdle. As soon the real problems would start, the business center would cancel their service contract with the entity you re trying to reach and they would start returning everything to the sender.
 
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