This case just gets more and more complicated. Crown Forex is an extremely complicated case of a Forex brokerage that turned out to be a ponzi scam. We’ve already reported today about another uncovered forex ponzi brokerage (One World Capital) – this time in the US.
To those who don’t remember, Crown Forex S.A. was a forex broker based in Switzerland. On 29/05/2009 FINMA closed Crown Forex S.A because of potential liquidity problems. FINMA is investigating the company and its executives. A month later we learned that there was another scandal associated with this broker – a Twin Cities fund manager was charged with scamming his investors for over $190 million, part of which was invested with Crown Forex. This fund manager, Trevor Cook, has used part of the money to acquire a controlling stake in Crown Forex S.A. Another significant fact that went unnoticed is that the same Trevor Cook owned 35% of JDFX – a well known Swiss forex liquidity provider. Trevor Cook was recently sentenced to 25 years in jail for his part in this massive scam.
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Part of the money that went missing in this scam was placed in PFG (Peregrine Financial Group) and the Minneapolis receiver R.J. Zayed, recovering money from this scheme, sued Peregrine Financial Group Inc. on Wednesday, claiming Peregrine managers ignored red flags as Cook and his cohorts sent them $48 million.
Zayed a veteran litigator at Carlson Caspers Vandenburgh & Lindquist, filed a nine-count complaint against Chicago-based Peregrine that seeks recovery and interest under Minnesota’s fraudulent transfer law.