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Crown Forex loses control

Discussion in 'Scam Alerts' started by Scam Investigations Committee, Dec 22, 2008.

  1. Scam Investigations Committee

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    On December 11th, the FPA sent out an email linking to an article warning traders about some major issues with Crown Forex. We've just gotten confirmation that a week or so later, the Swiss Federal Banking Commission has appointed two investigators to take control of Crown Forex and look into the problems with the company.

    Announcement about SFBC investigation (in French)

    We've run this through a couple of translators. It appears that the officers of Crown Forex are forbidden to take any legal actions or to sign any binding documents without the countersignature of at least one of the investigators. The SFBC investigators apparently can sign such things without anyone else's countersignature. This would effectively strip Crown Forex's officers of any direct authority.


    We also have a copy of a translation of an email sent from the SFBC to FPA member Joa. Joa was conducting some of his own investigations into the trouble other FPA members were having getting money back from Crown.


    This indicates that investigators are assigned like this to deal with companies that have cases of suspected law violations or suspected pursuit of activities without proper authorization and in danger of insolvency. We aren't sure which of these possibilities triggered the appointment of investigators to Crown Forex. Any one of them is bad.


    Under these circumstances, the FPA would recommend the most reasonable course of action would be to not place any money with Crown Forex. If you have money with them, we recommend withdrawing it immediately. If these issues can be resolved to the SFBC's satisfaction and the money owed to traders is returned, then we can change the recommendation.


    The original warning from the FPA about problems at Crown Forex



    Update: We wish to extend our deepest thanks to FPA Private Joa for going far above and beyond the call of duty investigating this case. We originally mis-identified him as one of those who was having trouble getting money back from Crown, since there were so many FPA members involved already.
     
    #1 Scam Investigations Committee, Dec 22, 2008
    Last edited: Dec 22, 2008
  2. Joa

    Joa Private, 1st Class

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    correction

    I am not one having trouble with Crown Forex. As a member, and me being Swiss, I took it upon me to run my own little investigation. To me it was a matter of trying to help the members since I might get information here much faster than anyone. I know Forex trading for the better part of the last 30 years and I've seen many scammers come and go. When I saw the complaints, I just KNEW something was up with that company. Sadly enough, I was proven right.
    The letter published above is correct in its entire length. In that letter the SFBC made the investigation known
    The publication in french that was posted in another thread is not the announcement of an investigation but rather just the published fact that now the SFBC has control and the other officers are forbidden to transact or sign any legally binding paper on behalf of Crown - unless they have one of the investigators countersign.
    It was on may part only a matter of solidarity with my fellow traders. As some of you know, I had posted a few things about Crown and I did add my personal opinion as well.
    It was countered by a member of Crown Forex SA - a somewhat brazen act to pull the cap over the eyes of the members of this team here, considering that the decision of the SFBC was already made on the 9th of December. The 18th of December was simply the publication date. Such things need a few days before the public corporate registry can process the papers that were submitted by the SFBC.
    I truly hope we all caught this one at an early stage. All funds on deposit, if then so still around and available are SAFE since the SFBC took control.
    I still recommend that members with funds at Crown Forex immediately demand payment, or renew their existing request. It might be helpful to send a copy to the SFBC as well. This way the certainly realize the seriousness of the violations by Crown.
    It would be a novelty in Switzerland if Crown would ever obtain a license. The fact of this "receivership" (for lack of a better term) will most likely lead to the demise of Crown Forex.
    Good luck to everyone.
     
  3. habu

    habu Recruit

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    Swiss Firms

    I wish all who are having troubles with crown the best of luck. I had funds in another swiss company, neuimex, and after almost two years I finally got an e-mail that said I MIGHT get 20% - 25% back, but still no time line.

    I always thought swiss companies to be of the highest standards but with two swiss companies going bad, I think I will just stay in the USA.
     
  4. Joa

    Joa Private, 1st Class

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    Swiss companies

    I beg to differ here
    Anyone can establish a company in Switzerland. A company by shares like an AG or french SA (Societé Anonyme) is nothing special.
    What tells you something is the officers and directors. There are some minimum requirements of course, and one officer must reside in Switzerland.
    Then you look at the rest, and you discover that the heads of the company reside in some foreign country like Jordan or Lebanon and it gets you thinking and it triggers a closer look - at least that is my reaction.
    Knowing Swiss corporate law to a degree, and you see, when you check the corporate registry, that every year the auditor resigned - now that is a RED FLAG. You always want a longterm relationship with an auditor for pure practical reasons. At the youthful age of 16 I started a company with my Dad, and to this day, more than 40 years later, we had all of three auditors........

    Just be thorough, don't just trust the advertising and a nice website. Some due diligence must be done always. That is why I stick with the likes of Dukascopy or Saxo - there I KNOW they are regulated and have a history - even when their customer service in English might suck :)
     
    #4 Joa, Dec 22, 2008
    Last edited: Dec 22, 2008
  5. Pharaoh

    Pharaoh Colonel

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    Wow! I knew they had issues, but thought they were just trying to pad the books to make it look like they had more cash on hand. This looks a lot worse.
     
  6. ABDULAZEEZ I.T.AFOLABI

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    Re-Crown Forex loses control

    This is a job well done and more grease to your elbow. I want to state here that to my dismay I still come across the Crown Forex's advertisement placed on the website belonging to the Action Forex.

    This is an affront to all civilized society which culminates into an absolute insult to our collective interest and aspiration, therefore the FPA must as a matter of urgency act accordingly to further nail its coffin.

    Once again well done, while the struggle must continue, because it is not over until it's over, for hope and confidence are gradually creeping back to the forex business.

    Best regards.
     
  7. ABDULAZEEZ I.T.AFOLABI

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    Re-Crown Forex loses control

    This is a job well done and more grease to your elbow. I want to state here that to my dismay I still come across the Crown Forex's advertisement placed on the website belonging to the Action Forex.

    This is an affront to all civilized society which culminates into an absolute insult to our collective interest and aspiration, therefore the FPA must as a matter of urgency act accordingly to further nail its coffin.

    Once again well done, while the struggle must continue, because it is not over until it's over, for hope and confidence are gradually creeping back to the forex business.

    Best regards.
     
  8. Scam Investigations Committee

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    Update

    The FPA has received additional information directly from the the SFBC.

    We definitely recommend against depositing more money with Crown Forex until this is resolved. It looks like it may take time if you wish to withdraw any money from an account with Crown Forex.
     
  9. juangecko

    juangecko Private

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    Is there any chance of getting the money back?
     
  10. clemkene@hotmail.com

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    Gr8 Work!

    Thanks for the good works.

    CLEM KENE, PH, NIGERIA
     

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