FCA Initiates Prosecution of Currencytrader Over Alleged Fraud
- Phillip Harold Boakes of currency-trader.co.uk is accused by the British financial watchdog of theft, six counts of fraud, three counts of using a false instrument and accepting deposits without authorization.
The Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) announced today that it has launched a criminal prosecution against Phillip Harold Boakes, a 54- year old broker from Warwickshire operating his private firm Currencytrader Ltd, who has allegedly carried out unauthorised FX trading activities, fraud and several other charges.
The FCA says the thirteen alleged offences all relate to an unauthorised investment scheme Boakes operated between October 1, 2004 and June 4, 2013, but his website, currency-trader.co.uk, is still up and soliciting clients.
On his very simple one page website, Boakes promises that anyone who signs up to his weekly email newsletter will: "Discover the Tricks of the Institutional Dealers and Traders." He goes on to explain his strategy:
"Many Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term, banks, and hedge funds- mainly big players with deep pockets-are known to fade breakouts, which are traded by the retail traders and ourselves.
Their game plan is to make money from the majority of the crowd who thinks that the price will rally merrily after an upside breakout or decline dangerously after a downside break, Since market makers are the pricing counter parties to their retail customers, they have to take the opposite end of the trade, whether you like it or not."
"The next stage of the trick comes when customers stop orders are triggered and the retail crowd goes long. This gives the market makers and other BIG PLAYERS a chance to close the previous longs that they entered by selling to the crowd. Our system predicts these moves by the market makers and so we are able to follow these institutions, making money for our customers by using high probability low risk trades."
That strategy might or might not have worked in the market, but for operating without authorisation the FCA considers the company to be another FX scam.
Boakes' alleged offences according to the FCA:
- Theft.
- Six counts of fraud.
- Accepting deposits without authorisation or exemption.
- Being party to the carrying on of a business for a fraudulent purpose.
- Three counts of using a false instrument, contrary to the Forgery and Counterfeiting Act 1981.
Mr. Boakes’ first court appearance was at City of London Magistrates’ Court on July 22, 2014. The case was passed to Southwark Crown Court with the first preliminary hearing scheduled for August 5, 2014.
The Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) announced today that it has launched a criminal prosecution against Phillip Harold Boakes, a 54- year old broker from Warwickshire operating his private firm Currencytrader Ltd, who has allegedly carried out unauthorised FX trading activities, fraud and several other charges.
The FCA says the thirteen alleged offences all relate to an unauthorised investment scheme Boakes operated between October 1, 2004 and June 4, 2013, but his website, currency-trader.co.uk, is still up and soliciting clients.
On his very simple one page website, Boakes promises that anyone who signs up to his weekly email newsletter will: "Discover the Tricks of the Institutional Dealers and Traders." He goes on to explain his strategy:
"Many Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term, banks, and hedge funds- mainly big players with deep pockets-are known to fade breakouts, which are traded by the retail traders and ourselves.
Their game plan is to make money from the majority of the crowd who thinks that the price will rally merrily after an upside breakout or decline dangerously after a downside break, Since market makers are the pricing counter parties to their retail customers, they have to take the opposite end of the trade, whether you like it or not."
"The next stage of the trick comes when customers stop orders are triggered and the retail crowd goes long. This gives the market makers and other BIG PLAYERS a chance to close the previous longs that they entered by selling to the crowd. Our system predicts these moves by the market makers and so we are able to follow these institutions, making money for our customers by using high probability low risk trades."
That strategy might or might not have worked in the market, but for operating without authorisation the FCA considers the company to be another FX scam.
Boakes' alleged offences according to the FCA:
- Theft.
- Six counts of fraud.
- Accepting deposits without authorisation or exemption.
- Being party to the carrying on of a business for a fraudulent purpose.
- Three counts of using a false instrument, contrary to the Forgery and Counterfeiting Act 1981.
Mr. Boakes’ first court appearance was at City of London Magistrates’ Court on July 22, 2014. The case was passed to Southwark Crown Court with the first preliminary hearing scheduled for August 5, 2014.