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Three Scam Brokerages Gone – ForexGen, SigmaForex, VelocityForex

Three Scam Brokerages Gone – ForexGen, SigmaForex, VelocityForex

I’d like to thank the FPA’s Scam Investigations Committee for letting me write this article. I’ve been waiting for this day to come for a long time now.

Back in the ancient days, when the Earth was still cooling and the FPA was still called ForexBastards, a very bad brokerage ripped off a trader for over $160,000. Felix posted what Rob wrote about this company in the forums. Suddenly, a bizarre fellow showed up in the forums here promoting these scammers. I did some searching and spotted the same guy spamming many dozens of web forums with fake advertisements pretending to be conversations between potential clients and happy customers. Once ForexBastards became the FPA and Scam Investigations were formalized, they scammed another trader, refused to even reply to messages from the trader or the FPA, and then attacked the FPA with hundreds of blogs filled with half-truths and obvious lies. Throughout all this time, the number of complaints against this broker was amazing. Last year, they tried to negotiate with the FPA to get the scam findings lifted, but broke off all contact when the FPA asked them to remove only 25 of the hundreds of remaining hate blogs.

A few weeks ago, I noticed that their website was down. I didn’t say anything publicly. Announcing that a scam broker had gone out of business only to have them pop up the following week with a bizarre story about how the FPA orchestrated the whole thing would be a waste of time and only feed their anti-FPA troll sites.

I dug deeper. Emails send to the broker didn’t bounce, but went unanswered. I found a small part of the website still functional and tried the live chat. Clicking on it gave me an “Your request could not be completed because the account you are trying to reach is disabled. ” error. I got word from a friend that their MT4 demo server seems to be offline.

I wish the scam cases could have been resolved, but this brokerage’s scam rotted it to the very core. Sometimes, a company is so bad that there isn’t really any hope of reform. I am proud to say that the multiple warnings issued by the FPA against this broker helped put an end to their reign of forex account destruction.

I now feel sufficiently confident that they are really gone that I’m willing to announce the death of the worst scam brokerage the FPA has ever dealt with (so far). I can’t even begin to express my happiness in announcing that

FOREXGEN IS DEAD!​

I’d like to thank every member of the FPA as well as every reviewer who told how badly they were mistreated. Combined actions to warn potential customers about these scammers helped to finally put them out of business.

Discussion article for all 3 cases against ForexGen.com

Complaint for Case 1 against ForexGen

Complaint for Case 2 against ForexGen

Complaint for Case 3 against ForexGen

FPA Scam Finding #1 against ForexGen

FPA Scam Finding #2 against ForexGen

FPA Scam Finding #3 against ForexGen

Note: This was when the FPA would investigate additional scam complaints against a company. Later, it was decided that a company which earned a Scam Finding did not deserve the resources required to investigate it several times.

Sometimes, you get a two for one special on good news. Sigma Forex was declared to be a scam in early 2010. Some people linked it to ForexGen, but there never was any solid proof. At about the same time that ForexGen.com’s website went down, I noticed that this broker’s website was also down. It looks like these companies really are somehow linked, since both websites had been moved to the same private server in a hosting facility.

This broker spent months skimming the edge of scam findings. Getting simple withdrawals took 2 months or more in many cases. FPA Investigator Tessa had to threaten them with a scam finding over and over again to pay money that they admitted that they owed. The brokerage had a business license in the UK, but wasn’t FSA registered. The license is about to be dropped since required reports are overdue.

Like Forex Gen, I didn’t want to announce this one and have them come back. It’s been long enough. Whether they really are part of ForexGen or not, I am thrilled to announce that

SIGMAFOREX IS DEAD!​

Once again, it was FPA members and reviewers who helped get the word out. Scam brokerages can only survive on money taken from people who haven’t heard about them.

It was companies like Sigma Forex and ForexGen that inspired me to write about Ethical Vengeance Against Scammers. The fall of these companies shows that not only did the FPA work against them, but that some traders used the methods I describe to to spread the word even farther.

Article about Sigma Forex

Original complaint against SigmaForex.com

FPA Scam Finding against SigmaForex

As I was preparing this, I got a message from the FPA’s AsstModerator to check another scam broker’s website. Their website isn’t giving an error, it’s pointing to a search engine. This company decided it didn’t like traders who made profits, so decided not to pay them.

So, after a first course of fried ForexGen, and a second course of slice SigmaForex, please allow be to present dessert. I am very happy to announce that

VELOCITYFOREX IS DEAD!​

The only thing that makes this one less than perfect is that Velocity was just some kind of IB/WL for StartForex. That company continues to operate.

Article about VelocityForex/StartForex

FPA Scam Finding against Velocity Forex

Be wary. These companies do look like they really are gone. They might come back under new names. They are more likely to come back under different names. If you have any more information about the people behind these companies, post it here for all to see.

This is what the FPA is all about. Bad brokers can no longer rob traders with impunity. They must pay money legitimately owed to traders. If they don’t, the FPA provides a place for traders to voice their individual complaints as well as to operate as a group to drive business away from those who would steal money owed to traders. It would be nearly impossible for any single person to drive a bad broker under. Only by operating together can we generate enough publicity to make it hard for scam brokerages to hide their crimes from potential new victims.

Have a nice day, unless you’re a scammer.
:D

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Pharaoh

Pharaoh

Pharaoh is one of the FPA's oldest members (he claims to be about 4000 years old, but we think he's exaggerating a little). He says he created the world's first trading pair (Cow/Goat) while ruling ancient Egypt. Although there are no archeological or historical records to support this claim, we can't find anything to disprove it. Although he's not as active at the FPA as he used to be, he still holds the highest post count of all FPA members.

We don't understand how he does it, but Pharaoh has an uncanny ability to spot scams faster than anyone else we've seen. He claims to have known a number of companies were HYIP scams just by their domain names and that each time an examination of the website proved him right. He's also famous inside Forex Peace Army for warning about Ponzi schemes, even ones run by large and well established companies. He's been in a number of threads trying to warn people away from active Ponzi schemes. In spite of the efforts of shills and those gullible enough to believe in free money to discredit his words, he keeps up the warnings. In each case, the company ended up either disappearing with all client money or being shut down by the authorities.

In addition to investigating scams, Pharaoh has written a number of articles on a wide rage of trading topics, including forex broker selection, risk management, and how to select a good account manager. He's also covered other items of interest to traders, such as protecting wealth and purchasing precious metals.

Pharaoh claims to be a business consultant, but says he makes most of his income by running a globe-spanning hamster smuggling operation. If we are to believe him, he's currently working on a network of hamster tunnels under southern Europe.

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