It seems the UK investing public has been taken by another FX trading scam. According to reports in the British media, an FX funds manager vanished from his office in Turkey, along with £130 million of clients’ money, after an alleged fraud.
Joe Lewis, a 59 year old man from Yorkshire, is under investigation by police after millions went missing from clients’ accounts as a series of FX trades went against him, according to The Sunday Telegraph. It is speculated professional soccer players and golfers may have been among the British investors that lost money in this case.
Wealthy people were introduced to JL Trading through word of mouth with the promise of FX investing on their behalf, resulting in profits of 1%-3% a month. They were also lured in by Mr. Lewis with opening bonuses such as golf vacations in Thailand and more. Since about 2011, only investors with a minimum of $25,000 (£16,000) were allowed to join his “investment club.”
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In an email sent to clients this month, Mr. Lewis confessed that his firm, JL Trading, had in reality stopped trading FX in 2009 after suffering disastrous losses. He further admitted in the email that he continued attracting investors for the next five years so that he might somehow recover the business, but he has failed in that.
Dear Investor Letter
In the email sent to clients on December 3rd, Mr. Lewis wrote: “Dear investor, I am writing to inform you that JL Trading is ceasing to carry on business. Contrary to the impression that I have hitherto given, the business has lost almost all of its assets, and there appears no prospect of those assets being recouped.
“JL Trading ceased foreign exchange trading in 2009 following substantial losses and since that time the business has suffered further losses, which I have tried to make good through investments in a number of commercial projects. However, it is now clear that the business will not be able to recover its losses and must cease trading. This means that, contrary to what was reported to you previously, you cannot expect any payments in the future.
“I can only apologise unreservedly for any losses or unfulfilled expectations of profit. I have tried to recover the position for a considerable period of time, but it is now clear that I will be unable to do so. I sincerely regret that I have not been able to do better on your behalf.”