Norfolk teenager accused of causing hundreds of thousands in losses
A Norfolk-based man, who ran a foreign exchange trading site while he was a teenager, has been accused of causing £500,000 in trader losses.
Morgan Reeve, who is now 20 and based in the town of Hunstanton, claimed to investors that he was a millionaire.
He ran a website called Morgan FX Limited, which was launched in July of last year.
He ran a number of images on this website which purported to show his lavish lifestyle, including two Mercedes cars.
He also took cash from a number of investors and is believed to have told his investors that 20% returns were possible.
Now, however, he has been reported to various authorities including Action Fraud and the Financial Conduct Authority (FCA).
According to one trader who spoke to the local newspaper the Eastern Daily Press, Reeve managed to solicit investments beginning at £10,000.
Paul McMillan, who is aged 61, said that he added £10,000 to Reeve’s fund and then later received notifications that the amount of cash was increasing.
He later increased his investment by several tens of thousands of pounds more. However, a significant chunk of this has now been lost.
The local press published a series of text messages believed to be from Reeve to one of his investors.
“Yes I thought it was going to get better but didn’t”, he is accused of saying.
In reference to the profit updates that he sent, he said: ”I made it all up because I thought it would be a good idea. Everything I’ve done I regret. I promise you now it’s all lost.”
Kenyan regulator warns traders away from forex trader
A regulator in Kenya has told traders to avoid a particular platform over claims that it has been operating without a license.
The Capital Markets Authority said that traders should avoid using Interweb Global Fortune, and that they also should not do business with its executive – known as Manasseh Kuria Karanja.
In a statement, the regulator said that there was also a risk that the scheme was a Ponzi scheme.
“In addition to unlawfully collecting funds from investors, Interweb Global Fortune’s business model features traits of a pyramid or ponzi scheme, where investors are promised high returns or dividends which are not realistically available through credible investment products”, said Paul Muthaura, who is the chief executive of the regulator.
“Investors have also been encouraged to recruit other people for a commission”, he added.
While Interweb claimed that it had the correct license to operate, the Capital Markets Authority disagreed.
“The investigation further revealed that Interweb Global Fortune has misled investors by claiming that it has applied for a license from the Authority”, added Muthaura.
The statement was concluded by recommending that anyone who felt they had been a victim of forex fraud – or had knowledge of such schemes – should contact the authority.