FX Ponzi Scheme Gets Hammered with $2.2 million Penalty
- Canadian fraudster to pay heavy monetary fine for FX related ponzi scheme. US financial watchdog, the CFTC, issues a number of judgements against Patrick Cole for breaching the Commodity Exchange Act.
The Commodity Futures Trading Commission (CFTC), a leading financial regulator in the United States has reported a judgement against Patrick Cole. The US District Court for the Northern District of Ohio issued a Memorandum Opinion, a Judgement Entry and a permanent injunction Order against Cole. The Canadian fraudster is to pay disgorgement of $1,146,399 and his company Global Strategic Marketing,(GSM) is to pay civil monetary penalties of $1.146,399. The judgement highlights the commitment the US regulator shows in combating financial crimes against its citizens.
The case is related to another serious FX related scam which saw defendants pay over $23 million in penalties. Complete Developments, LLC (CDL), and people associated with the firm were fraudulently soliciting a large sum of money from hundreds of individual investors to open “professionally managed” accounts for the purpose of trading off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 contracts. CDL and GSM were working as partners, the CFTC Order states.
Finer details of the case show that GSM, the marketing firm behind the managed accounts failed to verify data and statements that were presented by CDL. In addition, the firm promoted lucrative incomes, with statements that claimed: “Guaranteed return of principal and high rates of return on investment.” The firm sold its solution to investors with claims that it had carried out its ‘homework’ when in fact the firm had not verified the accuracy of the statements provided by CDL.
Since the infamous Madoff case, Ponzi schemes have been a buzzword as regulators look hard to ensure investors are not caught out. The CFTC has been actively pursuing FX related schemes. The financial watchdog has tried to raise awareness and has dedicated pages on its website with information on the numerous dangers of financial fraud.
The Commodity Futures Trading Commission (CFTC), a leading financial regulator in the United States has reported a judgement against Patrick Cole. The US District Court for the Northern District of Ohio issued a Memorandum Opinion, a Judgement Entry and a permanent injunction Order against Cole. The Canadian fraudster is to pay disgorgement of $1,146,399 and his company Global Strategic Marketing,(GSM) is to pay civil monetary penalties of $1.146,399. The judgement highlights the commitment the US regulator shows in combating financial crimes against its citizens.
The case is related to another serious FX related scam which saw defendants pay over $23 million in penalties. Complete Developments, LLC (CDL), and people associated with the firm were fraudulently soliciting a large sum of money from hundreds of individual investors to open “professionally managed” accounts for the purpose of trading off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 contracts. CDL and GSM were working as partners, the CFTC Order states.
Finer details of the case show that GSM, the marketing firm behind the managed accounts failed to verify data and statements that were presented by CDL. In addition, the firm promoted lucrative incomes, with statements that claimed: “Guaranteed return of principal and high rates of return on investment.” The firm sold its solution to investors with claims that it had carried out its ‘homework’ when in fact the firm had not verified the accuracy of the statements provided by CDL.
Since the infamous Madoff case, Ponzi schemes have been a buzzword as regulators look hard to ensure investors are not caught out. The CFTC has been actively pursuing FX related schemes. The financial watchdog has tried to raise awareness and has dedicated pages on its website with information on the numerous dangers of financial fraud.