Two BILLION Dollar Forex Fraud Lawsuit

Johnny2pips

Sergeant
Messages
178
You guys must relocate to Africa quickly and all. This magnitude of scam can NEVER happen here. It can only happen in the US.
Our Central Banks don't even have that much money.
 

Akbar Gajani

Recruit
Messages
2
It's really amazing how this bank kept on deceiving it's clients for such a long time......let's hope this lawsuit gets to it's positive logical end in the favour of the clients.Thanks.
 

susan

Private
Messages
19
Truth Will Set u free

Isn't true then What goes around comes Around, when whoever drew a plan to Scam Traders, he forgot One important factor. "What will Happen when Law of nature catches up with us"
 

infer

Recruit
Messages
11
So you guys realize what they were doing? Very simple.

They get a huge buy order from some pension fund. They execute it immediately at price X. Then the next day they bill the fund for High of the day, saying they executed there. Pocket the difference. Basically a license to print money. Over 10 years, and over huge institutional amounts. No wonder they made $2B.
 

Pharaoh

Colonel
Messages
19,743
Yet another reason that the only bank I trust is Mattress Bank. :D

Mattress Bank - Protecting your assets since 1929.
 

PistolDave

Corporal
Messages
105
Who does the government think they are dealing with?

So you guys realize what they were doing? Very simple.

They get a huge buy order from some pension fund. They execute it immediately at price X. Then the next day they bill the fund for High of the day, saying they executed there. Pocket the difference. Basically a license to print money. Over 10 years, and over huge institutional amounts. No wonder they made $2B.
Yes, I think this is a common practice and they don't actually have to execute immediately. As long as they have bought below the high (or close) in a rising market then they will make money on that particular trade, so the only priority is to make sure as many trades as possible are made at some price below the high (or close) -- so the big traders must have a good idea at the beginning of the trading day which direction they want to move the market and will keep trying to push it in that direction by concentrating their order flow at certain levels that will at least keep price moving in their direction so they can be able charge their customers the price at close even though they generally entered much lower. It makes sense, from that perspective. It appears that the NYC government doesn't seem quite happy with that deal, though.
 

WaveRider

Sergeant
Messages
305
This is a good thing - at least in the US

When the cops in NYC took the City back during the late 80 and 90's, the strategy was to send extra police to where there had been a greater amount of crimes committed. They literally followed where the reports were coming from until reports stopped in that area. This kept the bad guys from establishing a foothold in any area. Hard to sell coke when the po' is driving around the block every 20 minutes.

Wall Street (and the other big industries who routinely scam the average joe)understands that enforcement is 9/10th of the law. Since the new regulatory structure was put in place in the US, it has put more scrutiny on this especially scam ridden area of the financial sector. Citi and some other more traditional banks are getting in now and of course wonder if they get away with scamming. It's good business, if there aren't police circling the block. If there is no enforcement, no policing of FOREX, it is lucrative to take advantage of clients but if the regulators keep nailing scammers, it won't be. Fear of the cops on your street will make you more inclined to earn an honest living. I was initially very annoyed at the new regulations in the US but I do like to have police that don't work for the criminals.

FPA can only put scammers out of business. The Fed Gov't can put scammers out of business and take their assets to pay back to the victims. This is a private litigation suit, not a government action but a legal definition of "fraud" and an independent judiciary certainly helps see it through. As with every FPA case involving fraud, I hope the victims get their money back, in addition to branding the scammers.

This suit doesn't even show the tip of the iceberg of the amount of dishonesty in FOREX. But it does show a beginning of genuine accountability. It may not stop the drug dealers everywhere but I hope it will make them leave my neighborhood. I see this as a good thing.
 
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