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Elite Financials - Serous fraud

Discussion in 'Scam Alerts' started by szendro, Apr 19, 2010.

  1. szendro

    szendro Private, 1st Class

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    I prefer to use the term "serous fraud" to "scam" because the latter term tends to dilute the seriousness of the offence that Elite Financials is guilty of.
    My story in brief: I saw the statement on FPA which looked quite promising but was convinced when I read on their website that their service for managed forex accounts is "risk free"; they state that they will compensate you for any losses they may make on your account. Since they trade via a LPOA agreement with an FX brokerage, there was no way that they could withdraw my money, and the only profit they could make would be via performance fees by making a profit on my account - logical enough right ?
    How wrong I was. I lodged the minimum 50,000 USD required by them, and to my horror they lost the lot in 4 weeks. When I enquired about compensation I was told that there was a technical problem (via email) and I would receive funds in a few days. That did not happen. I tried calling them on the only number on the website, which turns out to be a pre-paid mobile number to a Pakistani mobile network. No reply. I contacted them again and again via email, and each time I received a very sincere sounding reply full of apologies, which ultimately was merely a delay tactict, The worst thing was that I fell for it and believed that there really was a temporary problem and they would compensate me. After 12th or 13th false promise (will repay in a few days, will call you, our director will call you - nobody ever did). I finally realised what they were doing: the FX brokerage pay Elite Financials 1 pip commission on each lot traded. So what Elite do is trade an enormous number of lots on your behalf, taking high risks, but not really caring if the trade wins or not because they are making maybe several hundred dollars on each trade in pip commission from the FX brokerage. This seems a particularly devious fraud and I want to alert anyone who may be taking in by their false promises of a compensation scheme as I was. I hope that they are relegated to the SCAM list as soon as possible to save other unforunate souls. I am seeking legal action at the moment because of the sum involved. I also note that several other forum members have been affected by these parasites and I urge you to contact me to increase pressure.
     
    #1 szendro, Apr 19, 2010
    Last edited: Apr 21, 2010
  2. Pharaoh

    Pharaoh Colonel

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    "Risk Free" and "managed forex" are two things that should not occur in the same sentence.
     
  3. hame

    hame Recruit

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    Elite Financials

    They do not only get the usual 1 pip commission for IB`s.
    On their demand the broker widen the spread from the usual 3pips on GBP/USD
    to 5 pips. That means they get for 10 traded lots 300 $ commission.
    They do not inform you about this spread widening and the broker also does not. You can only see this, if you login to your account and check it on the market watch. I really wonder, why the broker is doing this for such a scam company.
    I think the broker would be responsible to inform you about the extra high spread. If everyone would know about this, probably many customers would not sign up with this company.
     
  4. szendro

    szendro Private, 1st Class

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    Spread widening

    Hame , thank you for your post. When you say that the broker widens the spread by 2 pips for an IB, do you mean that the broker makes an extra 2 pips profit or that the IB is actually paid 3 pips (the 1 pip which is publicised and the 2 pips which are not).
     

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