The latest in forex fraud news: 23rd September

Denise Jacksone

Binary options operative sent to prison in US

A woman who was involved in a scam binary options project has reportedly been sent to jail for over a year in the US.

Liora Welles has been given a prison sentence of 14 months due to her involvement in the Yukom Communications scams.

The scams, which had links to both the US and Israel and involved the offering of notorious binary options, were believed to have defrauded people out of $145m.

It is understood that Welles was herself responsible for scamming investors out of $2.2m of the total overall figure.

She had pleaded guilty to a charge of conspiracy to commit wire fraud when she was first apprehended.

Her plea came in December 2018.

The official information about the sentence was not made available right away, but a journalist who was present in court confirmed the details.

Welles is believed to have started to cry when the sentence was read out.

According to the Times of Israel, the district judge in the case – Theodore D. Chuang – pointed out some positives which worked in Welles’ favour.

He emphasised that she was a young professional at the time of starting her binary options career.

She was 23 years old.

Welles committed to a plea deal with prosecutors, and in July she took the witness stand against her former boss as a result of the deal.

He also supposedly acknowledged that she had helped prosecutors bring a case against someone further up the Yukom Communications food chain, Lee Elbaz.

However, it was not enough – and she “literally cheated senior citizens out of their savings”, the judge said.

Welles has also been told she must pay back the amounts which she personally was responsible for defrauding people of.

UK regulator warns against possible crypto scam

A regulator in the UK has warned people to avoid a potential crypto scam involving a copycat firm.

The Financial Conduct Authority said that First BTC FX, which offers cryptocurrency products to customers, was pretending to be a legitimate company with a license.

In fact, the company does not have the appropriate license.

A message from the FCA released last week suggests that the firm is in fact pretending to be First Global Limited, a legitimate organisation.

The copycat service has even borrowed some of the legal jargon from the legitimate organisation and offers what it describes as an “investment plan”.

In this plan, it claims that those who invest $100 could receive a return of $3,000 – a highly unlikely return on investment.

The FCA has told traders to be careful about the firm, and to exercise caution to avoid falling for the traps laid by copycat firms in general.

“Be aware that the scammers may give out other false details or mix these with some correct details of the registered firm”, it said.


Denise Jacksone

Latest news

Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
The Forex Fraud team has received more messages from scammed traders pointing out how recent crypto price rallies are bringing an old scam, the double-dip, back to the table. Read more
State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
Given the amount of technical and fundamental analysis that goes into running a successful investment strategy, it’s often surprising how many traders skip analysing the health of their broker. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs 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
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    HYCM Logo
    XM Logo
    Forex.com Logo
    Vantage FX logo
    BlackBull Markets Logo
    ATFX Logo
    Plus500 Small Logo
    Pepperstone
    OctaFX Logo
    IC Markets Logo
    City Index Logo
    investous
    skilling logo
    FXTM Logo
    LegacyFX Small Logo
    AvaTrade logo
    IQ Option Logo