British Forex Account Manager Accused of £40 Million Forex Ponzi Fraud

Pharaoh

Colonel
Messages
19,750
Terry Freeman, head of GFX Capital Markets (www.gfxcapital.ch) got busted on February 9th by the British Police. Anyone having money with his company is requested to contact the City of London Police at this link: http://www.cityoflondon.police.uk/CityPolice/Media/News/gfx.htm

Mr. Freeman has a managed forex company and is accused of running it as a Ponzi scheme. He also kept a blog (http://www.gfxcapital.ch/traderDiaryFS/2009_01_04_archive.html) where there is an interesting mixture of signs of trouble (complaints of poor communication from the company, difficulty accessing trading records, etc.) are mixed with glowing praise and defense of Terry for the fine job he is doing in troubled economic times. One defender goes so far as to suggest that he should only give one financial statement and chance to withdraw money per year, so that complaints and bothersome record keeping don't distract from trading.

Sadly, this sort of extreme loyalty is common in cases where a Ponzi scheme has gone on for awhile. Some investors will remain true believers in the integrity of the scammers, even after a criminal conviction is handed down. Others see the light earlier – usually about the time the arrest hits the papers. As I write this, there are a lot of people on the other side of the pond wondering if they can recover any of their life savings.

Please, if you are thinking of letting someone else trade your money for you, read these two articles first:

http://www.forexpeacearmy.com/forex...959-ponzi-schemes-hyips-free-money-traps.html

http://www.forexpeacearmy.com/forex...ose-all-your-money-managed-forex-account.html


NOTE: I do not know if gfxcapital.ch is related to gfxcm.com or not. There are many similarly named forex companies out there. I did try to call gfxcm's New York office before posting this, but only got voice mail.
 

ferrariboy

Recruit
Messages
1
Good news

It's great to be briefed on such scam information. Not only is this a great read but will serve to educate all of us well. Keep up the good work guys!
 

Pharaoh

Colonel
Messages
19,750
Just remind me of how you run a Ponzi Scam using LPAs?
That's an excellent question. From what I've been able to dredge up from the British press and the complaints on his blog, it looks like many (maybe all???) of the client's had their money placed in pooled accounts rather than having their own personal accounts and letting him trade with a Limited Power of Attorney.
 

SAMMYFX

Corporal
Messages
76
It's so re-assuring to know that you exit as a 'watch dog' for forex traders. My thumb is up for you for this wonderful information.

SAMUEL, NIGERIA.
 
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