Even authorities in heavily regulated jurisdictions have to deal with suspicious financial and investment activities, possible fraud, and scams. This week regulatory authorities in Texas announced a warning and emergency cease and desist order against what is described as an “aggressive online forex scheme”.
The Texas State Securities Board issued the order against TradeGo Forex Exchange and found that the company published more than 250 advertisements on craigslist, a popular online marketplace. The advertisements allegedly target residents of Dallas and Houston, as well as residents of other cities located throughout the United States. In the ads, the company touted a “trading program tied to forex, as well as oil, gold, and stocks.” The company claimed it is low-risk and will generate significant profits – as much as $1000 to $5000 per day.
The individuals running the company encouraged investors to deposit funds into accounts controlled by the alleged criminals, instead of to a genuine company account, in order to gain control of the investor’s funds. The regulator pointed out that these individuals were also “not registered with the Commodity Futures Trading Commission or the National Futures Association.”
All inventors and traders are advised to thoroughly check their brokers for licensing and registration information in order to ensure the safety of their funds. Always Check Your Broker!