Onecorpfx withdrawal problems - no response

[aladar]

I am a client of Onecorpfx since October 2009.
OCFX sent me an email that they opened for me a new account at eforex. The balance of the new account was zero. (07-19-2010)

On 07-23-2010 I got another email,
"Do to compliance issues all clients will need to withdraw there funds and then re submit an application directly with EForex and then fund your accounts directly from your own bank account."

I sent ocfx my first withdrawal request. (07-27)
Some days later trade was disabled on my ocfx account.

The last reply of ocfx was, "Have sent multiple request to Boston Tech for the money but they seem to be having a problem with accounting. Have my attorneys working on it now." (08-24)

Since then I sent them four emails (asking for details etc). I received no emails at all.

Later my eforex account was disabled. I asked eforex about this yesterday. The answer was, "Your funds were sent back to onecorp fx, you will have to follow up with onecorp fx to retrieve your funds."
"There is no relationship between eForex and onecorpfx anymore."

Is it possible that a forex broker can simply steal your whole fund?
Any help would be appreciated!

 

[NickB]

Ok I just called OneFX and asked a few questions. Basically this is how the conversation went.

Me: Hi I want to open a Forex account but I have a few questions to ask first?
Him: Yes go ahead.
Me: What country are you based in?
Him: Unites States but we clear out of Panama .
Me: That would mean you're not NFA or CFTC registered correct?
Him: Yes, we aren't.
Me: Thank you for your time, bye.

Brokers who set themselves up in small nations like Panama are quite risky to trade with. They set themselves up in small nations such as these to avoid minimum capital requirements and to avoid the need for regulation.

This basically means they can open up a brokerage firm with very little capital. Therefore when they run into problems they cannot afford to pay their clients back. And their clients have absolutely no recourse as they cannot contact a regulatory agency such as the NFA or CFTC.

If they are not willing to give you your money back you are going to find it very difficult to get it back. So yes it is possible for them to steal your funds sorry to say.

When dealing with regulated brokers that do not send withdrawals I usually recommend calling the regulatory agency that regulates them. When dealing with bucket shops in Panama there isn't much you can do. Perhaps FPA can intercede on your behalf.

I really recommend that in future you go with a US or UK regulated broker. Get their regulation ID number and visit the regulatory agencies site to confirm they are actually registered.

 

[aladar]

I was told that funds are protected by FDIC.
I drew similar consequences for the future...

 

[NickB]

Sorry mate, you could always try calling the FDIC but it doesn't sound promising. I have tracked down something for you though.

Comisión Nacional de Valores
Comisión Nacional de Valores

The site is in Spanish so if you cannot read it you may have to use Google's translator.
Google Translate

These guys apparently regulate fiancial markets in Panama. I have no clue how much help they will be but you might as well give it a shot. Let us know how it works out.

 

[aladar]

Thanks for the help.
Finally I received an email from ocfx:
"We are waiting on attorneys that are dealing with our old clearing house. Boston Technologies.
They are the ones that are holding the funds not us.
We have put in several request to them.
We are currently in process of bringing lawsuit against them for fraud if they don't
comply with our request soon."

I also talked to ocfx on phone, but they couldn't tell me any reassuring words.
Do you think Comisión Nacional de Valores can help me in this is case?
Is there anything more I can do in this situation?

 

[Pharaoh]

Ask Comisión Nacional de Valores what they can do.

Ask Boston Technologies what's going on.

If you funded via bank wire, ask your bank for advice on where to file fraud charges.

 

[NickB]

Good suggestion by Pharaoh is to ask your bank. If you funded via PayPal launch a dispute if it is still within refund period or email PayPal directly if not. if you funded your account in another way look into the possibility of raising a dispute with whichever company you used to fund the account.

The idea is to analyse every possible action you can take and TAKE IT! Even if the possibility is remote go for it you never know. Have you given them a lot of money?

You could even try calling the NFA while they wont be able to take action as the broker is not registered they may be able to give you some valuable advice.

How much money are we talking about by the way? If it is a significant amount you may consider contacting your lawyer and having him write letters to all the companies involved. Sometimes a threat from a lawyer is enough to make them give you your money back.

 

[aladar]

Thank you all for the advices. I will inform you about the responses.
I funded via bank wire. I made some modest profit. Finally my balance was over $10k. This was a significant portion of my capital.

 

[NWAJEI CHRISTIAN]

same issue with prime4x

what i think we should do is get in touch with the bank that the receive our founds from that way we can get them,because they are scam to prevent people from sending money to them

 

[aladar]

I will inform you about the responses.

NFA has answered, they can't do anything but will forward my complaint to CFTC for further handling.