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liteforex is the biggest scam

Discussion in 'Scam Alerts' started by Ala Sadeq, Oct 29, 2012.

  1. Pharaoh

    Pharaoh Colonel

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    Ask them to send you the details of exactly which transactions were fraudulent and what made those transactions qualify as fraudulent.
     
  2. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    I have just invited LiteForex to join the discussion.
     
  3. PaladinFX

    PaladinFX Private

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    ... which was exactly two weeks ago.

    I can't say I'm surprised they decided to remain silent.

    If they had positive proof of 'fraud' or money laundering, they would surely have included evidence in the second mail they sent.

    It is like Thai-trader said: Don't do business with brokers who offer boni.


    Cheers,
    P.
     
  4. BigT1

    BigT1 Sergeant Major

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    Hello again Ala Sadeq,
    Could you please update your status on this thread?
    AI
     
  5. Pharaoh

    Pharaoh Colonel

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    Check Open Cases. LF never bothered to respond and the case is scheduled to go for a vote next week.
     
  6. ElizavetaLiteForex

    ElizavetaLiteForex LiteForex Representative

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    Dear sirs,
    First of all I should ask administration of forum to restore the profile of mr. Shuvalov. He sent the request, but still didn't get any response. So I was obliged to explain our position in the cases which were opened against us.
    Every year some similar cases appear again and again. Several groups of “traders” or one "advanced trader" try to steal our company’s money cheating with the bonus. The scheme is as follows: They created many fake profiles each time taking the bonus of 30%. They can try to use $30 coupon bonus also. Then they opened buy and sell trades simultaneously. The volume of buy and sell trades was equal, so one part of the trades gave them pure loss and the other one gave them pure profit. But the point was that their profit was higher than their loss by the amount of the bonus. So they just were taking the bonuses for free with no risk. It can be even called “trading”. We stopped it, blocked their accounts and returned initial deposits.
    We have significant evidences of such scheme presence. Ala Sadeq has several fake profiles in our company and it was found the crossing between IP addresses which were used to log in trading accounts belonging to different profiles. It's easier to shout "scam broker" than obey to TOS, right?
    We said it last year but I should repeat again: we won't tolerate such a thing! No one of honest traders has any problem due cooperation with Lite Forex. We provide our bonuses to help our customers to maintain their margin but not for cheating so each attempt of fraud will be stopped.
     
  7. BigT1

    BigT1 Sergeant Major

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    Hello ElizavetaLiteForex,
    .
    I truly thank you for posting your response here.
    Perhaps you can examine this predicament in which you find yourself, and ask these important questions of your own management:
    "Why as a company do we voluntarily choose to make false promises of imaginary bonus monies?
    .
    Is it to attract innocents who know no better?
    Is it to attract clever thieves who wish to game you?
    Is it to build a solid client base?
    Is it to show off to other brokers?
    Is it because you intend to glean as much from the field through overtrading as possible?
    .
    Please explain, we are all ears!
    Just why do you offer such bonus that seem to be the root of all your evil?
    .
    I can't wait to write a report to the NFA and the SEC as to why we should permit this vile, disgusting practice in the real world!
    I would truly appreciate a sensible explanation, for at age 63 I have not yet found one.
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     
    #17 BigT1, Nov 27, 2012
    Last edited: Nov 27, 2012
  8. PaladinFX

    PaladinFX Private

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    Adding to Mr Ingrassia's above post I would like to say that, personally, I find it hard to believe that somebody spends the time and effort necessary to open 'several fake profiles' and then instigates multiple trades on each of them ... all to gain 30 (or 60 or whatever small amount) dollars.

    One could make a better hourly wage sweeping streets or cleaning restrooms.

    It seems more plausible to me that LiteForex is using a convenient excuse to run their own little scheme, taking into consideration your dubious choice of country for registration and 'regulation'.

    Lastly I would like to remark that I do not understand your Anti-Money Laundering Department getting involved in what seems to be a simple case of alleged fraud.

    You do know what money laundering is, and what regulations against it intend to achieve, do you?
    (Come to think of it, that was a silly question ... if you catch my drift :))


    Paladin Consultants
    Germany
     
    #18 PaladinFX, Nov 27, 2012
    Last edited: Nov 27, 2012
  9. Pharaoh

    Pharaoh Colonel

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    Let's pretend for a moment that I develop an evil plan to create 2 separate profiles to abuse a $30 bonus.

    So far, I haven't yet seen a bonus that can be withdrawn without trading so many lots that I'll have spend FAR more than $30 on spreads. So, I can't see this evil plan working out even if LF actively encouraged people to try.

    Still, this may fall under a TOS violation. Please show the evidence.
     
  10. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    I think there is some confusion. I don't know if this is on LiteForex's end or mine. I sent an email to Sergei as part of notifying LiteForex about these issues and he said he didn't work there any more. I then got an email on Monday from a different address asking for access to the Shuvalov account.

    The email associated with the Shuvalov account was one of the ones I notified about this issue on November 12th.
     

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