Class action lawsuit launched against FXCM for fraud and racketeering!

I thought this mob was supposed to be large and well regulated? Looks like they are as crooked as they come in reailty. Fraud and racketeering!

Morgan Business Trial Group Files Class Action Lawsuit Against Nation's Largest Forex Dealer -- FXCM
Federal Court Claim Alleges Fraud and Racketeering by Forex Capital Markets, LLC
ORLANDO, Fla., Feb. 10, 2011 (GLOBE NEWSWIRE) -- The Business Trial Group of Morgan & Morgan, P.A. filed a class action lawsuit today against Forex Capital Markets, LLC (FXCM) (NYSE:FXCM) alleging fraud and racketeering by the nation's largest Forex dealer.

The lawsuit, filed in the United States District Court for the Southern District of New York (Manhattan Division), alleges that FXCM has bilked thousands of customers out of hundreds of millions of dollars using deceptive and unfair trade practices, including falsely portraying its Forex trading platform as a fair, transparent and true foreign currency exchange, when instead it is a "rigged game" designed to systematically separate customers from their money.

The Plaintiff, William H. Sanders, of Muscogee, Oklahoma, brought the action on behalf of himself and all other similarly situated FXCM customers, accusing FXCM of fraud by misrepresenting itself as a trading platform that is free from dealer intervention or manipulation. Instead, Sanders alleges, FXCM uses a number of devices and tricks, including software applications, designed specifically to interfere with customers' trades.

The Complaint further alleges that FXCM engaged in a pattern of racketeering activity by collaborating with its software developers and programmers to develop a "diabolical" software application that provides FXCM with a myriad of tools and system commands with which to interfere with customers' trades, including routing trades to "slow" servers and sending false "error" messages when customers attempt to close out profitable trades.

Finally, Sanders alleges in the Complaint that FXCM lured thousands of customers to its trading platform by promoting a "demo account" which was touted as providing customers with a true market trading experience. Instead, he claims, once "live" trading commences, FXCM deploys specially designed software to manipulate customers' trades.

Lead Trial Counsel Tucker H. Byrd, of the Morgan & Morgan Business Trial Group of Orlando, Florida, stated, "We are proud to be representing Mr. Sanders in this action, which we believe will be an important step in bolstering accountability in an industry that has been largely unregulated since inception. We believe, as the Complaint alleges, that Forex Capital Markets, LLC has taken advantage of the trust placed in it by its customers, causing substantial financial harm to this group of people, and we are committed to working to recover those losses."

FXCM is the nation's largest Forex Dealer Merchant. The company recently went public and trades on the New York Stock Exchange.
Morgan Business Trial Group Files Class Action Lawsuit Against Nation's Largest Forex Dealer -- FXCM
 

RahmanSL

Major
"Finally, Sanders alleges in the Complaint that FXCM lured thousands of customers to its trading platform by promoting a "demo account" which was touted as providing customers with a true market trading experience. Instead, he claims, once "live" trading commences, FXCM deploys specially designed software to manipulate customers' trades."

Attention:
[B]Will all Brokers, who are not guilty of the above crime, please say so here at this post.[/B]
 

vincam

Sergeant
"Finally, Sanders alleges in the Complaint that FXCM lured thousands of customers to its trading platform by promoting a "demo account" which was touted as providing customers with a true market trading experience. Instead, he claims, once "live" trading commences, FXCM deploys specially designed software to manipulate customers' trades."

Attention:
[B]Will all Brokers, who are not guilty of the above crime, please say so here at this post.[/B]
I hear crickets......
 

RahmanSL

Major
vincam...yup...sure is peace and quiet from the Brokers' world.
Anywhere, I've started a thread on this and will wait the whole of next week to see which Broker's Rep would lay claim to being not guilty of any of these charges leveled at FXCM who was most unfortunate to have been found out.

An honest Broker/Business makes a decent living. The dishonest ones become hugely profitable. Facts of life in the real business world!
 

SMFX

Private
I'm really not surprised by this class action given their reputation among traders.

FXCM have been in trouble with the NFA before and fined in relation to misleading promotional material plus other matters.

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1023

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=432


I'm also amazed that they seem to have team of internet marketers, promoting FXCM as a Non-Deal-Desk broker on various internet forums, even though their very own SEC filings state they are using multiple Market Makers.

According to those same SEC filings, around 80% of FXCM's revenue ($200mill+ per year) is from retail traders. So it's a very lucrative business.

I'll be very interested in the outcome of this court case.

It's very important that this industry gets cleaned up.
 

Albert.b

Sergeant
Seems Funny!

Since all this came out, all the swaps on my account have been in my favour!

Before this, they were nearly always not in my favour!
 

luckyvic03

Recruit
About time

I've never been a fan of FXCM so I am happy to hear this is taking place. It seems to easy to be able to manipulate order flow, execution and everything else that's involved after you hit the buy or sell button. Hopefully they will just let us trade honestly and play against each other instead of having to play against each other and the clearing firm.
 

Nerdie

Corporal
FXCM Fx Calibre in Australia - traders lost their money

In Australia in 2010 the Apple Investment Company sold FxCalibre software developed from the FXCM Fx Calibre software.

The trading platform required an FXCM account with deposit even to open the training package.

We have been alleging that Apple Investment Company Pty Ltd in Australia knowingly used the promotional literature from Apple Investment Company US to promote this product and mislead the public.

We have not been able to find anyone yet who has achieved the ROI figures which we suspect were given to Apple Investment Company by FXCM, the developers of Fx Calibre.

Either way we have not been able to get refunds on our software which did not perform even when used as directed, nor have we been offered compensation for losses suffered as a result of this via the FXCM account.

Litigation is expensive.

Can we join the class action in the US or do we have to go through it all over again in Australia?

There is further information on this in Scam Alerts/Apple Investment Company as pertains to FXCM and on the business practices of Apple Investment Company in Open Cases Steve Callaway vs Apple Investment Company

Some of us are just catching up with what has been going on in the US wrt FXCM.

If this is true then Apple Investment Company only have themselves to blame for receiving so much flak online in forums.

They should come clean now and tell us the truth.

Why are they covering up for FXCM?

Are FXCM paying them extra to do it? - apart from the kickbacks (rebates) that Apple get for every trade placed with FXCM (in their Product Disclosure Statement).

Maybe we'd better contact Morgan and Morgan in the US and find out what we in Australia can do.

All this information will be going to the Australian Securities and Investments Commission to support our complaints to them.

Too much of this is going on in secret. Why isn't this information in the mainstream media as well? ie print, radio and TV? Why isn't this being talked about on talk back shows in Australia? Or is it?

Any suggestions?

:nerd:
 
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