fbpx

Daily fraud update: 18th October

Chris Lee

Hello and welcome to your update on the latest news in the cryptocurrency and foreign exchange fraud spheres.

South African man sentenced over forex fraud

A man from South Africa has been sent to prison for 15 years over his role in a foreign exchange scam.

David Wilmot, who is 47-years-old and is from Sunridge Park in Port Elizabeth, was told last week that he would go to prison after pleading guilty to over 150 counts of fraud.

He was also convicted of breaking the Exchange Control Act, and of breaking the Financial Advisory and Intermediary Services Act.

He was convicted of money laundering as well.

The crimes happened over the course of a five year period from January 2010 to June 2015.

Wilmot told his clients that their cash would be invested in the forex markets.

However, the scheme turned out to be a Ponzi scheme.

While Wilmot received 23.2m South African rand in total from his investors, he only actually moved 2.4m rand into the forex trading accounts – meaning he pocketed around 90% of the incoming cash.

Ultimately, liquidators were left unable to locate where the funds had gone.

According to press reports, Wilmot also produced false paperwork when asked by investors in an attempt to preventing them from suspecting what may be really happening.

Broadway tickets firm sees anti-fraud potential of blockchain

A firm which sells tickets on New York’s iconic Broadway has announced that it will work alongside IBM to combat fraud.

The Shubert Organisation, which is the biggest ticket firm on Broadway, said that it would use IBM software to defend itself against the risk of scam tickets.

It will work alongside True Tickets to deliver the package using the Telecharge system, which is a ticketing service used by Shubert.

It will also apply to other product streams of the Shubert Organisation, including Broadway Inbound – the company’s bulk buy discount service.

It is believed that the work will begin next year, suggesting a fast turnaround time for the partnership.

At present, scam tickets cause a significant problem for Broadway and other theatre districts around the world.

Some locations, such as London’s West End, have begun implementing strict ID checks at smash-hit shows such as Hamilton.

However, blockchain offers the possibility for almost fool-proof systems as well as additional transparency for sellers and buyers.

According to Matt Zarracina, who runs True Tickets, the new blockchain system allows for some defence against what he called the problems of the “multichannel marketplace”.

“At the end of the day, we aim to help our clients develop more meaningful relationships with their patrons”, he said.

“This pilot affords us the opportunity to do exactly that in a massive multichannel marketplace.”

The work came about as a result of True Tickets’ participation in a scheme called the Broadway Tech Accelerator, which aimed to find new technology solutions to some of the most pressing problems in the theatre and entertainment worlds.


Chris Lee

Latest news

US regulator charges forex trader with fraud
A major US regulator has lodged charges against a man who is accused of offering fraudulent foreign exchange opportunities. Read more
What’s coming up on the forex calendar this week?
Now that a new forex trading week is underway, it makes sense to look ahead at what will be coming up as the days go by. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#3 Plus500 Logo80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
5
#5 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker
5

    Forex Fraud Certified Brokers

    XTB Logo
    iTrader Logo
    skilling logo
    Oanda Small Logo
    XM Logo
    Exness Small Logo
    HYCM Logo
    Pepperstone
    ATFX Logo
    Plus500 Small Logo
    OctaFX Logo
    VantageFX Small Logo
    Forex.com Logo
    City Index Logo
    LegacyFX Small Logo
    Swissquote logo
    IQ Option Logo
    Oinvest Small Logo