The scourge of Forex fraud still remains and the case against Xcore Capital, heard in the High Court this week, starkly highlights the nature of the perpetrators.
Jonathan Chitty, a director of Xcore Capital, lost against the Financial Conduct Authority and the Court has ordered him to pay a fine amounting to £917,231 after it became clear that, not only was the firm unauthorised, but the money the investors trusted Xcore to invest on their behalf was used by Jonathan Chitty to open an office in Mayfair, pay the staff wages and fund his luxury lifestyle. A considerable amount was applied to his personal spending, such as £24,000 Rolex and £102,000 of cryptocurrencies; a further £58,000 was spent on other luxury purchases as well as £20,000 towards his wedding.
Many hundreds of people around the world are targeted each day. Frequently they are novice investors who are unfamiliar with the markets and do not recognise that the broker they are dealing with and its so-called trading platform and its way of working are bogus. The vast majority of fraudulent Forex brokers are sophisticated "con-men" experienced in hiding their tracks using a series of convoluted inter-connected limited liability companies, registered in different jurisdictions, with some dormant and some active leaving their victims and the regulating authorities struggling to navigate their way to the fraudsters.
The lawyers in Giambrone's banking and Forex disputes team are extremely familiar with the methods employed by fraudulent brokers and we have a good track record of recovery of funds for our clients. There are many strategies and tactics that can be employed to achieve the restoration funds. Individuals who are just beginning to invest in the Forex market should be cautious and look into the broker they plan to work with very carefully. There are several methods that fraudulent brokers use to deceive their clients. Before even considering using a broker you should research the firm's background and find out how they are regulated. However, it should be noted that some firms set up a legitimate regulated firm through which the "trading" takes place and after a short time, on the premise that they are upgrading you to VIP status, your account is moved to another firm, with an identical name, which is held out to be the platform for their most successful clients. It is, of course, a separate unregulated entity from which they can begin to extract your money with no regulatory come-back. It isn't until suspicions are aroused that the scam is revealed and the fact that the regulatory body is completely unable to assist.
A good test as to the legitimacy of an investment broker is to refuse to be rushed into investing, there is rarely an opportunity that must be taken up immediately. If you are being urged by your account manager to make decisions almost immediately it is likely that the firm may not be as reliable as you would hope it to be. Another warning sign is being told that you must invest more and more money to recover your former success.
Should you have lost your money dealing with Xcore Capital or any other Forex broker and would like to see if it is possible to recover your funds please click here
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