A FOREX Club to a Ponzi?

The club had been operating since 2002 and the returns were good. The company operated in more than one country. In one country, the investors were primarily from the local community and like most investment clubs did not need to advertise as the good news of the high returns was spread by word of month. In another country the company used limited promotional materials.

Within the last three years, the club ran into some problems. The club alleges that it suffered massive losses and instead of passing on these losses to the investors, opted to use new investors’ money to pay old investors while attempting to correct the problem. 

While that might have been the real story, it appears that at least since 2005, the club as been operating as a PONZI. The club claimed that the payments were from gains in FOREX trading when it was not. Now the forward march of the club has been halted.

Source: http://www.sec.gov/divisions/enforce/claims/fomacinternational.htm

6 Responses

  1. Reminds me of a number of these so called “investment clubs” in Jamaica.
    The big question is how many more will lose before this folly will stop.

    Olint may have started off as a “real forex outfit” but it has since moved to being a ponzi.

  2. Jay please check your email. Select the option just gimme a username

  3. Good stuff guys. Glad someone is out there actually doing some research on all this BS that is posing as actual invesments.

  4. Does this seem familiar are what. O you may be next if people do not start getting their money. TCI not very big.

  5. Came across this article on another blog and thought it was rather interesting.

    10 Reasons Not To Trade Forex


  6. I really enjoyed reading your page… there is always more to learn… keep up the good work!

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