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GUILTY - Case# 2011-032 | pensee vs www.falconsfx.com

Discussion in 'Guilty Verdicts' started by pensee, Apr 1, 2011.

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

Poll closed May 22, 2011.
  1. Guilty

    93 vote(s)
    100.0%
  2. Not Guilty

    0 vote(s)
    0.0%
  1. pensee

    pensee Recruit

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    Original FPA Traders Court Submission by pensee:

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

    My Case is: Dear Sir/Madam,


    My name is Pensee Aly Fathallah; I am an Egyptian citizen who was recently a victim to an online fraud from an American Forex trade company. I would like to file a complaint on them combined with legal proofs hoping for justice to be applied and for those criminals to receive the judgment they deserve. Following please find detail description of how the scheme was applied.




    Company Information
    Name: FalconsFx
    URL: http://www.falconsfx.com/
    Business: Forex
    Location: 16192 Coastal Highway , Lewes, Delaware 19958 , County of Sussex.
    Tel: +1 315 889 8101 | Fax: +1 866 766 9461 | E-mail: info@falconsfx.com


    Contract History
    On 30/8/2010 I signed a contract with the mentioned company. Attached please find a copy of their contract [falconsfx_contract.pdf] and a scan copy of my contract [pensee_fathallah_falconsfx_contract.jpg]
    I started my online trading directly afterwards with them opening my account with $8,215 deposited on 30/8/2010 [stmnt_1.jpg], followed by another $2,000 deposited on 5/10/2010[ stmnt_2.jpg], followed by another deposit of $1,750 on 7/10/2010 [stmnt_3.jpg] thus making my total deposits in my forex account = $11,965

    Fraud Problem

    I started trading and let me tell you, I was doing pretty good. When I first signed the contract, I was directly told that I can withdraw the money at anytime but bonuses can't be withdrawn except after t3 months from the start date of the contract. As I started making profit earlier than the 3 months, I requested to withdraw from it putting in mind that my balance will still cover the bonus they gave me, by then their true face started to surface...


    They came up with some strange terms that wasn't mentioned in neither the contract nor verbally which they called "required lots", which they explained to me that I need to have to make a certain number of lots before withdrawing the bonus and that if I didn't reach the target required lots the bonus will be deducted from my account!


    As you can see that totally doesn't make sense, how come I am forced to make profit or loose money?! When I was faced with this fact I informed them that I don't want the bonus and that they can keep it and that I wanted to withdraw my money. Here came another shock, suddenly they claimed that I was a pip trader and scalper! I didn't understand what they meant at start, Though it isn't my first time doing online business but it was my first forex trials, I was knew to the market and had to google what they meant by these words, I couldn't understand how this was related to my case or why isn't it mentioned in the contract?!


    It was obvious to me by then that I am being played! My equity was by then $28,708 [stmnt_4.jpg]. Though that was more than double what I originally invested but I had a strong feeling that I won't see my money again and I was a victim of a well organized online fraud, so I asked them to keep all the profit and just return my original amount of money which is $11,965 and to keep the profit to themselves hoping for this to put an end to it.


    But suddenly they took all my profit and informed me that i have to make 298 lots in three month in order to be able to withdraw my original money! of-course i didn't, they never kept a word to start with and there was no guarantee that they will keep this one!


    FalconsFx Investigation

    I started investigating this company, first I contacted one of my friends working in the internet security business and gave him the company's URL, he returned to me with the following

    Here is what he said

    1. This company is a fake, nothing is original in their site, all they did is take a gadget from ForexFactory along with some pictures from other sites.
    2. The company's address is fake and doesn't exist.
    3. The company's phone number is mentioned that it is in a state which it isn't, it's a new york number.
    4. The company is registered with godaddy with specific information to hide it's owner.
    5. The company's real owner is from an arabian country, most probably Jordan.
    6. These guys are professional scammers, they did everything in a smart way.
    7. According to Forex regulators this company doesn't exist.
    8. This company started as an idea to scam arabian people only making an online ForexArabia facebook group which didn't succeed and continued in their other approach.


    I was shocked, I didn't know whether to believe him or not, can this be true and how come I was trading, placing accounts, watching my profit! how did this happen. Frankly, I didn't believe this so I contacted DailyForex asking about FalconsFx regulator and who to contact to get my money back, following is their reply


    Hi Pensee,
    thanks for contacting DailyForex.


    We tried to look at your case with your chosen Broker.
    Unfortunately we know nothing of them and from what you describe we would suggest you try and see with which organisation are they regulated by - FSA etc...


    Try contacting them with the description of the problem with as much screen shots and documentation you can provide.


    In the future we suggest you read as much reviews as possible on brokers you choose to put your hard earned money with in advance.


    Good Luck and Good Trading
    Adam,
    DailyForex Team


    Conclusion

    It was clear to me now that I was scammed. I don't know what to do but to file a legal complaint with al the history hoping to put a stop to their expanding victim list and wishing to get my money back. It is in your hands now, hope to see justice executed.


    Attachments
    1. transaciton_statement.zip: Screenshots for transaction history with FalconsFx
    2. bank_deposits.zip: Screenshots for bank transfers from my account to FalxonsFx account.
    4. falconsfx_contract.pdf: FalconsFx contract
    3. pensee_fathallah_falconsfx_contract.jpg:My FalconsFx signed contract
    4. stmnt_1.jpg: initial deposit
    5. stmnt_2.jpg: my second depost
    6. stmnt_3.jpg: my third deposit
    7. stmnt_4.jpg: statement including my $28,708 equity


    Thanks in advance,
    Sincerely yours,
    Pensee Fathallah
    email: p_fathallah@hotmail.com

    New thread in the Scam Alerts Folder:
    www.forexpeacearmy.com/forex-forum/scam-alerts-folder/14622-aware-falconsfx.html#post60895

    Review is submitted by pensee on 04/01/11

    The company was first contacted about the issue on 08/30/10, the last contact was on 12/27/10

    Details: Dear Pensee,



    We consider scalpers somebody who systematically pip hunts below 3-12 pips on average. Since it is difficult to cover such positions in the market, Falcons FX does not accept clients using Scalping and Pip trading methods. In particular, Falcons FX reserves the right to close or to cancel all open or closed positions of such clients and to close their account(s) and to discount any loses as a banality.





    We reviewed your account history and we notes that you are a scalper and pip trader.



    After investigation and our accounting and legal departments reviewed your history, your scalping strategy made 2970$ = 297.0 lot loses to our company, 21% from your trade is scalping and 47% from your trade is Pip trading. Instead of discounting these loses as a banality from your account we deiced the following banality:

    1- Cancel all open and closed positions.

    2- Holding the out going transaction (withdrawal) for 90 days with minimum 297 trade lot as a quota and You have the right to continue trading with us but according to Falcons FX terms and conditions.



    Please not that our accounting department opinion is that you are a good trader but unfortunately Scalper.

    Please not that if you decide to continue with us and you do scalping one more time you will not be welcome any more.

    Choose what suits you better and were glad to assist you.





    Kind Regards,





    Back Office Department

    Falcons Financial Investments, LLC

    16192 coastal highway, lewes

    Delaware 19958, county of sussex, Usa

    Tel : +1-866-766-9461
    Fax : +1-866-766-9461

    E-Mail : BackOffice@FalconsFX.Com

    Website : www.FalconsFX.Com


    Dear Pensee,



    Your Account is suspended from out going transaction (withdrawal) for 90 days with minimum 297 trade lot as a quota.



    Kind Regards,





    Back Office Department

    Falcons Financial Investments, LLC

    16192 coastal highway, lewes

    Delaware 19958, county of sussex, Usa

    Tel : +1-866-766-9461
    Fax : +1-866-766-9461

    E-Mail : BackOffice@FalconsFX.Com

    Website : www.FalconsFX.Com

    Company representatives' emails:
    <sales@falconsfx.com>

    Attached Files:

    1. stmnt_1.jpg
    2. stmnt_2.jpg
    3. stmnt_3.jpg
    4. stmnt_4.jpg
    5. falconsfx_contract.pdf

     
  2. Teodor Jackson

    Teodor Jackson Sergeant

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    I tried to track the address.
    There is no any link I can find.
    The place seems to be host of many businesses despite being small inn housing near some junkyard.
    But none is linked to the falconfx

    Of course all I could do is to go trough yellow pages, local web sites and Street View (paste the address there and see it!).

    The web site is registered by godaddy as stated.
    Have no means to verify the landline - all I learned it's US national tool free, that's all.

    The statement shows trade history resembling scalping indeed.
    BUT scalping is a valid trading technique as long as it follows broker rules. Some brokers define scalping as very sort term trade like less than 120 or 60 seconds and prohibit - they cannot hedge these trades in time and also to protect against spike news hunters.
    Most of the trades I saw here is much longer.
    And of course any limitation should be stated up front.

    I understand they say you should trade at least 297 lots within 3 months to get YOUR deposit? That's ridiculous.
    Brokers set some turnover limits on bonuses. They have every right to do it - it's their money.
    But NOT on deposits - this is YOUR money, not theirs.

    I understand they accused you for making them loss by your trading?
    Brokerage is not only profit but also risk. As every business. They cannot accept trading and then claim compensation for loses.
     
    #2 Teodor Jackson, Apr 4, 2011
    Last edited: Apr 4, 2011
  3. pensee

    pensee Recruit

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    correct in every written word

    You're correct in every single word , there's no track or sign of them! But there's a USA file number : 4653207.....i don't know if this leads to anything !?

    I'm working hard to get my money back and hopefully the FPA court will help me find these scammers and return my money back. Unfortunatly my first experience with forex trading was very disapointing. It's very hard on a person to be decieved like this. If there's any recommendations relating what else i can do please state it.

    Is reporting this complaint to the FBI a good idea also? if the answer is "no" please tell me what else i can do. I feel like paraliyzed as i'm in another country and can't reach these criminals. I really need to report this fraud to any Competent authority

    Thanks alot for your investegation and your help.
     
  4. Pharaoh

    Pharaoh Colonel

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    I can't find anything on them at the NFA.

    Report them to the NFA and the CFTC. They are getting much more aggressive with unregistered brokers using virtual offices inside the USA.

    You can also file a report with IC3.gov
     
  5. vincam

    vincam Sergeant

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    Off of the terms of your contract:

    21. SCALPING. Trader agrees and acknowledges that the service provided by Falcons FX to Trader hereunder is not
    adapted for trading techniques commonly known as "scalping" or "picking" ("Scalping"). In the event of Trader
    employing the Scalping techniques, Trader agrees and acknowledges that Falcons FX may in Falcons FX's sole discretion
    take one or more, or any portion of, the following actions: (i) close Trader's account; (ii) suspend Trader's account for
    an indefinite period of time; (iii) carry out an investigation on Trader's account for an indefinite period of time; (iv)
    increase the spread; (v) charge a penalty fee to Trader in the same or greater amount of money that resulted from
    Trader using Scalping techniques.

    I also attached a screen of their website stating no scalping and their definition of it.

    They are clearly a non-scalping broker so I'm not sure if they are really scamming you on that front. However holding your initial deposit for any reason is outrageous. They seem to be saying that your scalping cost them money and now they want you to trade lots to get their money back, is that your understanding of what they are telling you?
     

    Attached Files:

    #5 vincam, Apr 5, 2011
    Last edited: Apr 5, 2011
  6. pensee

    pensee Recruit

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    Let me tell you something; first of all, when they accused me of scalping i told them that there's nothing about scalping in their website!! and after that the "terms and conditions" page was broken for about 2 days and then they came up with the page you've attached.

    2nd: there's nothing that states that scalping means closing the transaction before 10min or any specified time. Nothing that makes that clear in either the contract or the website.


    3rd:In the contract they didn't mention anything about "pip trading". They accused me of this too and came up with it after i made more profit while avoiding their claimed scalping rule and closing after 10 min.

    they seem to have an organized plan to first start with the bonus then scalping then pip trading and finally the penalty to ensure that i will lose my money
     
  7. vincam

    vincam Sergeant

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    What I am stating here ONLY applies if the term listed about no scalping was in your original terms you signed on in the contract which I am assuming it was.

    I agree with you that the specifics of it is not clear and there is no mention of "pip trading" in their terms, they have written it in such a way to give them an excuse to cancel orders, there are many things in the Terms which give them this ability. They are not a good broker to be dealing with just based on their own Terms.

    Having said that, they did state that scalping was not allowed in your contract and traders would agree that many of your trades would be considered scalping. Some responsibility is carried by the trader to understand all the terms listed in the TOC before starting to trade. If you had zero trades that would commonly be considered scalping then you would not violate this term. Is this term deceptive and non-specific? Yes. But it is there and trades were done that would be commonly considered scalps so for that reason I cannot say they did not have the right to cancel the SCALP trades, however, none of the trades not considered to be scalps should be canceled, there is nothing in the TOC that says trades not considered scalps would be canceled for violating this term so the way I read it those trades should stand and be given to you.

    Just to be clear, I do not like this broker. Their terms are purposely vague and give multiple excuses to cancel orders, I would not recommend someone to trade with them. However it does seem as though they put it in the Terms that scalping was not allowed and some of your trades did not agree with this term. This term does not however state anywhere that they can hold your initial deposit either so there is no question that they owe you the money you put in back in full immediately, I see no reason for them to hold this money.
     
    #7 vincam, Apr 6, 2011
    Last edited: Apr 6, 2011
  8. Teodor Jackson

    Teodor Jackson Sergeant

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    They made excuse here:

    "(v) charge a penalty fee to Trader in the same or greater amount of money that resulted from Trader using Scalping techniques"

    I'm not sure if this rule comply with laws.
    Personally I doubt if they had any real loss.
    Even if it was real, they took all profits to "compensate" the loss.
    Yet their rules say they can go even further without any limit. Well, there is one - NULL balance.
     
  9. vincam

    vincam Sergeant

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    Yes this clause is very troubling, basically you scalp, we can take an undetermined amount of money from you. This broker is definitely not a place to be trading.
     
  10. pensee

    pensee Recruit

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    Still, there's no clear definition for what scalping or pip trading means in the contract. I was told by phone about scapling and went through unreasonable arguments and lots of phone calls that 5min is the least period for a transaction to be closed and after then i was told that 10 min is the least period.

    As for pip trading , nothing is mentioned about it in the contract
     

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