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Amasis Capital Management — A Forex Fraud?

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Managed forex trading accounts provide fertile ground for a forex fraud to grow in, and unfortunately this has been the case for a number of years.

One especially questionable company purporting to manage forex accounts for investors goes by the name of Amasis Capital Management Ltd. Read about this company, Michael Atkins and find links to other managed accounts frauds in the end of the article.

Concerns Over Amasis Capital’s Location

Apparently, Amasis Capital Management is run by Michael Atkins of Wilmington, Delaware where the company claims to have been incorporated, according to a FAQ appearing on the Amasis Capital website.

Nevertheless, the same source also claims that the company has a representative office in Jakarta, Indonesia for which a full address is given. Despite the website mentioning additional offices in Switzerland and the United States, no other addresses besides the one in Jakarta are provided in the FAQ.

Even more worrying is the fact that no regulating agency of any kind is mentioned in the website’s FAQ. This fact, combined with the Indonesian address, makes Amasis Capital Management immediately suspect as a possible forex fraud.

Basically, even if the company does have an office in Indonesia, it may not be a real business location. Also, Indonesia may not be the easiest country in which to obtain legal recourse via a lawsuit in the event of Amasis Capital not returning any invested funds.

Amasis Capital’s Profitability Claims

Another forex fraud red flag when it comes to Amasis consists of the company’s unusually high profitability claims of a 0.5% to 2% daily return in their managed forex accounts which make up their sole product. Furthermore, Amasis managed accounts require a minimum $100,000 investment, according to information posted on their website.

In addition, a FAQ on their website describes their suspiciously-high returns as follows:

The program has an 85% success rate of maintaining a 5%-8% monthly return on investment. Daily losses incurred in this program can average from anywhere between 0.5% – 8% depending on market conditions. Our stop loss limit (maximum loss we will tolerate) is 25%.”

In addition, draw-downs were addressed in the company’s FAQ in the following rather ambiguous manner:

At present, we do not have sufficient statistics on how often we experience draw downs on a given yearly basis.”

The last question addressed on Amasis Capital’s FAQ page is “Can I see the daily live trades?” This refers to whether or not investors could review the transactions that the company was making with their money.

The questionable answer given to this reasonable question was that live trading could not be viewed because of the proprietary nature of the trading technique. Nevertheless, the FAQ went on to say that investors would receive a portfolio statement on a monthly basis “detailing all activity taken on their account for the month.”

This basically means that an investor would have to trust the company with a large sum of money for an entire month before being able to tell something might be wrong by reviewing trading activity.

What Amasis Clients are Saying Online

Many people have posted on Internet forums about their concerns and their personal experiences with allowing Amasis Capital to manage funds for them in the company’s managed forex accounts.

According to such online reports, Amasis Capital stopped paying out client funds in February of 2009, although the company has consistently reassured investors through e-mail communications from Michael Atkins that their funds would soon be reimbursed. Nevertheless, no funds have yet been received by all accounts.

Furthermore, in his January 12th letter to clients, Mr. Atkins states, “It means a lot to me and I will always be grateful for your kindness and patience,” to which he added, “Regardless of what I say, I know my credibility with you is probably already shot. So just know that when your money has finally been returned to you, that I always stood behind my commitment to you.”

He ends this particularly suspicious-sounding missive by asking his managed account clients to “wait out the next few days” to put the matter to rest and get their money back, and that if there are any changes, they will be notified.

While no funds have yet been reimbursed, new funds have been solicited in a common ploy among forex scammers. In this case, wire instructions were provided for another bank account for clients to deposit additional funds in Amasis Capital which were sent out in a reply to complaints sent by customers.

On March 15th, 2010 yet another notification was received by clients of Amasis Capital as follows:

Dear clients,

GOOD NEWS!! We’re happy to inform you that all remaining accounts are now in process of settlement.

You should start receiving your funds in the next several days. Please inform us as soon as you receive your funds.

Unfortunately, the as-yet unpaid clients of Amasis Capital are still waiting patiently for the return of their investments. Hopefully, these too-trusting people will recover all or part of their investments, although that presently seems quite unlikely.

Furthermore, the next likely event for the company, besides perhaps making more questionable attempts at calming investors down with empty promises made in e-mails, will be their website being taken down or having its domain name expire. This seems to be the standard operating procedure for fraudulent forex managed account operations, of which Amasis currently seems like just another example.

Conclusion – Avoid Amasis Capital!

Overall, Amasis Capital Management should be avoided at all costs. While managed funds may still be reimbursed to the company’s existing clients, no good reason exists to gamble on this company actually being aboveboard and legitimate after what its clients have already had to go through.

Also, without having sufficient legal recourse because of the lack of a regulatory body, and with only an Indonesian address listed on their website, these facts should give just about any investor significant concerns about sending Amasis Capital any cash whatsoever — let alone the minimum of $100,000 or more they request.

Avoid becoming a victim of forex managed account fraud. Remember, if a return looks to good to be true, it probably is, and you are also usually much better off managing your own funds than in trusting them to dishonored strangers like Amasis Capital.

Other possible managed accounts scams:

Read about a company where the money went to luxury cars, a private jet and strip clubs.

Trade Chimp, the hyperactive forex scalp system.

PanaMoney Technologies managed accounts HYIP fraud.