Charges made in Colorado Ponzi scheme case
A woman from the US state of Colorado has been charged over claims that she set up and made money from a forex Ponzi scheme.
Breonna Clark, who ran a firm called Venture Capital Investments (VCI), has been accused of the crimes by the Commodity Futures Trading Commission (CFTC).
It is alleged that Clark stole over half a million US dollars from those she targeted.
Clark, who has also been known by the names Eliot Clark and Alexander Pak, also stands accused of having failed to register her firm with the CFTC.
She also supposedly told individuals who invested their cash a number of lies, including ones pertaining to the firm’s past performance.
The allegations claim that fake account records were at one stage shown to investors.
The allegations are believed to date from March 2018 and stretch up to as recently as June 2019.
In a statement, the CFTC went into some further detail about the allegations against Clark – and explained that there was also a cryptocurrency dimension to the allegations.
She “solicited U.S. residents to trade foreign currency (forex) contracts as well as Bitcoin and other digital assets through a commodity pool operated by the defendants”, it said.
It also detailed Clark’s alleged use of the funds of luxury items.
“In connection with these solicitations, the defendants collected $534,829 from approximately seventy-two individuals”, it said.
“Rather than trade, the defendants used at least $418,000 of the funds for personal expenses—including acquiring a BMW automobile—and to make Ponzi-type payments to other pool participants”, it added.
It is also believed that the investors in the scheme came to Clark on a number of occasions with requests to withdraw their cash, but that this did not materialise.
“At various times during the Relevant Period, several pool participants requested to withdraw funds from their accounts”, the CFTC said.
“In some instances, Clark failed to respond at all to a pool participant’s request. In other instances, Clark responded with false excuses”, it added.
Brazilian crypto exchanges shut down
Two cryptocurrency exchanges in the South American country of Brazil have closed down after regulatory changes.
The firms, Latoex and Acesso, made the decision to close following the imposition of the regulations, which came from the country’s Federal Revenue Service.
It is understood that volumes of trade have dropped after the regulatory changes came into effect, while firmer rules on what exchanges can and cannot do have also had an impact.
According to Pedro Nunes, who was one of the people who set up Acesso, the “market has cooled off”.
“After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume”, he said.
“We also feel that the market has cooled off for smaller exchanges”, he added.
His quotes, which were translated, featured in the cryptocurrency press.
- Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
- State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
- Patience is Rewarded – Is Now the Time to Buy The Dips?
- Was El Salvador’s Bitcoin Launch a Target of Market Manipulation
- The Share Price Plunge at CMC Markets is Bad News for Clients and Investors
- Attack of The Clones – An Update on Scam Sites and How to Avoid Them
Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox