The US Commodity Futures Trading Commission (CFTC) has started cracking down on forex and binary options scams. The first such scam to go under is a forex and binary options trading scheme operated by a Georgia resident.
Phony scheme busted
Kenzley Ramos, a man based in Georgia, was recently charged by the CFTC for defrauding people by soliciting investments in a phony forex and binary options scheme. Ramos received a ‘cease and desist’ order from a state regulator earlier this year. He pooled money from investors and promised to invest it in the currency markets. He also claimed that the money will be used to “profit off the coronavirus with forex.”
The fraudulent business has been running since June 2015. During this time, Ramos solicited investments between $200 o $2,000 from the victims on the pretense of trading forex and binary options. He gave them personal guarantees and offered spectacular returns as well. He touted himself as a successful trader who is using a proven strategy to ensure that there is “no possible way investors can lose money.” He also failed to disclose the inherent risks associated with trading forex and binary options to the users.
Investment fraudsters leveraged on the pandemic
Several fraudsters the coronavirus pandemic as a perfect opportunity to create scams. Ramos used two aliases while soliciting investments- Anthony Green and Anthony David “Tony” Mckinney. He guaranteed the investors enormously high returns, sometimes promising as much as 300% returns during the week. He also said that he would deduct a 15% fee from the balance whenever a customer withdraws his funds.
The money he received from investors was never used for investments. Instead, he used it to fund his personal expenses. He preyed on the pandemic-related concerns and said that the stock market was crumbling because of the virus. His most recently Craigslist ad suggests that he was targeting residents based in Dallas, San Antonia, Austin, and Houston.
Ramos was indicted by a federal grand jury in a parallel criminal action for commodities fraud.