Daily fraud update: 30th October

Chris Lee

Hello and welcome to your daily fraud update covering the cryptocurrency and foreign exchange worlds.

CFTC looks for action in VOS Capital Management case

A major US regulator has announced that it will bring more documents in front of a court over a case involving a firm called VOS Capital Management.

The Commodity Futures Trading Commission (CFTC) has taken the clerk’s certificates of default to the New York Southern District Court in an attempt to get action against the firm and its leader, Dominick Vincent Carducci.

The move has occurred after neither VOS Capital Management nor Carducci responded to a range of previous complaints.

Carducci and his firm are accused of carrying out a scam forex investment scheme in which they sought out donations from a range of investors and then pooled them together.

They pooled the investments in what are known as off-exchanged leveraged foreign exchange contracts.

Trading on the margins in this way can increase the value of an investment exponentially, but it can also cause it to drop exponentially too.

It is alleged that Carducci made a range of false claims and misrepresentations.

According to the original complaint, the CFTC said that this happened through a diverse range of mediums.

“Defendants solicited prospective Pool Participants through in-person meetings, telephone calls, e-mails, text messages and word of mouth, seeking out individuals who would agree to let Carducci trade forex on their behalf through his company, VOS Capital”, it reads.

It went on to outline the extent of Carducci’s allegedly false claims.

“In soliciting prospective Pool Participants, Carducci, as an officer and agent of VOS Capital, made the following misrepresentations, among others”, it said.

That he “was a highly successful forex trader” was one, and “that by virtue of his trading success Carducci was able to make frequent international trips and to acquire luxury automobiles and expensive clothing”.

“At least one Pool Participant was told that Carducci has made $11 million from forex trading”, the CFTC added.

Dubai man arrested over crypto fraud claims

A man originally from Pakistan, who lives at one of Dubai’s most prestigious addresses, has been taken into custody over claims of fraud.

Aziz “Com” Mirza, who lived in the world-famous Burj Khalifa, is accused of carrying out fraud in a range of ways including Ponzi schemes.

He is also accused of creating a cryptocurrency which was later rendered worthless.

He created a scheme which was called the Leverage Programme (LP) and managed to get over a thousand sign-ups – at a cost of £5,000 each.

His cryptocurrency, which is allegedly fraudulent, was known as Habibi Coin.

According to the local press, his victims were from far and wide and included people from as far away as North America.

One Dubai resident, originally from India, who signed up told Gulf News that she had lost all of her savings.

“We were called for a meeting at a mall in Dubai where Com promised us financial freedom within one year. More than two years have passed since then and I have no clue where my money is”, said the Indian expat.


Chris Lee

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