FCA Initiates Prosecution of Currencytrader Over Alleged Fraud

The Financial Conduct Authority (FCA) 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.

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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, 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.