Travis Iles, the Texas Securities Commissioner, has entered an Emergency Cease and Desist Order this Wednesday against a suspicious forex broker – GoForex Group, a South Carolina firm that claims to be legally registered as a private investment firm.
The target audience of GoForex is investors with limited means, promising them that for only a small investment, it can produce large returns from investments in foreign currency trading, real estate, and oil and gas.
Specifically, the firm is targeting residents in Texas and claims that investments can make a huge return of 900 percent in only 21 days – seems almost too good to be true right? The reason the firm can make such big claims is thanks to its team of “hundreds” of foreign currency traders and other professionals with investment experience in real estate, oil, and gas, the broker claims.
GoForex presents itself to be all about supporting those with limited financial means. That’s why it has a minimum investment plan which is available for “only” $500. According to the broker, this was created for “people with small financial strength, students and first time investors.” GoForex claims this plan has “helped thousands across the globe [to] overcome frequent financial breaks.”
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The Red Flags of GoForex
According to the statement, there are a number of red flags surrounding GoForex – besides the unbelievable promise of 900 percent returns. The first is in regards to its address. The order states that the broker lists an address in Detroit, however, it is not incorporated in Michigan. In fact, the company is located in Orangeburg, South Carolina.
In Texas, GoForex is not registered to sell investments. Neither are the two individuals who have been linked to the company in the order. In addition, the business registration that the broker has provided on its website is actually a fraudulent document that was originally a certificate issued by the International Business Companies Registry of Belize, which the company has digitally altered.
GoForex is also lying about its clients. On its website, the broker showcases a photo of one of its “clients.” However, it turns out that so-called customer is actually an NPR radio host in Connecticut who has never had anything to do with the firm.
On top of all of this, the broker also hasn’t provided any information on the alleged expert traders and their background. Nor, has the firm disclosed the risks involved in these types of investments.
Taking all of this into account, residents of Texas should give GoForex a wide birth. It is also good for potential investors to do their due diligence on a broker before parting with any money – particularly with companies that are offering huge returns.