CFTC charges Forex Ponzi scheme - Demuzio Capital
US regulator CFTC has filed a complaint against FX Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term set up by Brad Lee Demuzio who ran Demuzio Capital. It is believed the scheme solicited around $1.8 million.
Demuzio, an unregulated money manager, would solicit clients to invest with him in the high risk Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market. However Demuzio was misusing the client money and spending funds on his lavish life style.
The UK's FSA arrested a 23-year-old who was caught out after 'over' spending his fraudulent money.
Demuzio Capital has taken around $1.8 million of client money and generated a healthy $900,000 loss. The defendant was mis-informing clients over a three year period that their funds were actually safe and making money. Demuzio sent his clients monthly statements with false information showing the accounts in profit.
Demuzio never stopped his misuse here, when clients were demanding funds he sent another false document claiming to be from the CFTC saying that Demuzio Capital is currently under investigation and the funds are frozen by authorities.
Demuzio has admitted his crime and awaits sentencing.
US regulator CFTC has filed a complaint against FX Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term set up by Brad Lee Demuzio who ran Demuzio Capital. It is believed the scheme solicited around $1.8 million.
Demuzio, an unregulated money manager, would solicit clients to invest with him in the high risk Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market. However Demuzio was misusing the client money and spending funds on his lavish life style.
The UK's FSA arrested a 23-year-old who was caught out after 'over' spending his fraudulent money.
Demuzio Capital has taken around $1.8 million of client money and generated a healthy $900,000 loss. The defendant was mis-informing clients over a three year period that their funds were actually safe and making money. Demuzio sent his clients monthly statements with false information showing the accounts in profit.
Demuzio never stopped his misuse here, when clients were demanding funds he sent another false document claiming to be from the CFTC saying that Demuzio Capital is currently under investigation and the funds are frozen by authorities.
Demuzio has admitted his crime and awaits sentencing.