GUILTY Case# 2015-042 | zackbear1987 vs algorates.com

[zackbear1987]

Original FPA Traders Court Submission:

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

My Case is: They claimed to give excellent returns on invested money.
Invested ~$4500 in them on 15th Jan 2015.
From ~1st Feb 2015 all contact was lost from them (email and phone).
Searched the internet and found FPA.com and saw others had similar issues.
Contacted them about withdrawing my money and they sent me a disclaimer to sign which further exposes me financially. This has not, and will not, be signed.
I have filed complaints with fraud police in UK.

New thread in the Scam Alerts Folder:

• https://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/39039-algorates-again.html
  

Review is submitted by zackbear1987 on 03/30/15

The company was first contacted about the issue on 02/02/15 the last contact was on 03/24/15

Details: Full details are available on the open thread:

https://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/39039-algorates-again.html

Attached document is what was sent to me after a asked for my money back.

Company representatives' emails: Lloyd Cooper <lloydc-compliance@algorates.com>
Brooke Ericson <brooke.e@algorates.com>
Elliot Taylor <elliot@algorates.com>

 

[Pharaoh]

Yo AsstMod! When you have a moment, I think this one needs priority handling. The so-called insurance document looks like a scam in and of itself.

 

[AsstModerator]

Invitation issued.

 

[AsstModerator]

Because of the seriousness of the issues reported around the "insurance" agreement Algorates is sending to clients, this is going to a vote now.

If you haven't read it, Algorates is asking clients to sign some papers for some type of insurance. On page 12, these papers include an agreement to pay AlgoRates a penalty of $250,000 for any negative information transmitted in any way from the person who signs the agreement. Under these terms, Algorates could wait years before sending each client $1 as an insurance settlement and demand $250,000 from any client who complains.

A representative of Algorates wrote this in an email about the previous Traders Court case...

As i have responded to all your emails so far we at this point in time are not certain with which or whether we can supply an insurance and anything we are doing currently
are attempts with numerous insurance companies.

I replied that everyone knows you can't buy insurance after an accident. There has been no further reply from Algorates.

 

[F***X]

algorates: "Withdrawal?" .. Send us another 250k for the non-disparagement clause

"Updates
This non-disparagement clause and the terms and conditions of service may be updated at any point in
time by the Company, without any notification to the customer"

So upon agreeing with the alleged perpetrators "algorates", not only could the client be liable for $250K, while waiting for a $1 in settlement, these hooligans may "Update" the so called "insurance" to whatever term they please.

 

[zuijlen]

Client agreement looks fishy as well...

Guilty, no doubt. The so-called insurance claim form is most bizarre. But there is more that's wrong.

I read the client agreement provided by AlgoRates (at Client Agreement) and that should raise a red flag; especially this clause:

20. Whenever the Client transfers funds to AlgoRates, those funds belong to AlgoRates and will be treated by it as its own for the purpose of securing or covering the Client's present, future, actual, contingent or prospective obligations, subject only to any contractual obligation of AlgoRates to pay or return money to the Client according to the terms of this Agreement. The Client will not have a proprietary claim over money transferred to AlgoRates, and AlgoRates can deal with it in its own right. In determining the amount of collateral and the amount of AlgoRates' obligations to pay or return money to the Client, AlgoRates may apply such methodology (including judgments as to the future movement of markets and values), as AlgoRates considers appropriate.​

So not only is there is no segregation of the client's money, he/she also gives up any claims to it at this point.

The normal way to do these things with managed accounts is that the client gives a Power of Attorney for the company to trade on their behalf, which seems to be lacking here. I also found it striking that nowhere in the agreement is any mentioning of the jurisdiction under which the agreement falls.

 

[Singlemalt]

Caution

I can only speak for myself, but when I go to a new broker, I deposit only the MINIMUM up front. After some interaction (time) with the broker, I begin to cautiously increase my investment if I feel comfortable doing so. It's not a perfect system, but it helps.

 

[leifa]

I this even legal binding. By signing this you are agreeing to be a slave, paying them as much as they would like, forever, if the company so wish.
SCAM. GUILTY. No doubt!

 

[Master Yoda]

Based on the evidence and the review of zuijlen I see no other option but voting GUILTY

This looks like a very amateur so called broker

 

[Geordie]

This ask's for details even my bank doesn't have

"Updates
This non-disparagement clause and the terms and conditions of service may be updated at any point in
time by the Company, without any notification to the customer"

So upon agreeing with the alleged perpetrators "algorates", not only could the client be liable for $250K, while waiting for a $1 in settlement, these hooligans may "Update" the so called "insurance" to whatever term they please.

This makes me wonder if there should be a list of brokers who subscribe to (or are registered in) nations where banking laws guarantee refunds are adhered to and that ALL other brokers should be classified as automatically dodgy or uncertified until they have shown such compliance to FPA. They are obviously guilty.