Forex

Top 5 Forex Scams Exposed

The urge to make quick money is not something new. It is a trait envisioned in many sectors as well as fields of operations. The forex market with a daily turnover of over $5 trillion has experienced its fair share of fraudulent projects that have seen investors lose money running into millions of dollars.

Most and the biggest scams in the forex market have been propagated by individuals using nifty tactics that even the experienced have fallen prey of. Below are the top five scams to have ever hit the forex market.

Universal Brokerage Services Forex Scam Size: 190 Million

What started as a forex trading company ended up being one of the biggest scams in the forex market. Founded by Trevor Cook in 2003, Universal Brokerage Services operated as a forex trading company.

However, as the financial crisis was gaining momentum in 2008, Cook struggled to refund investors money after investing in Crown Forex SA. The company eventually hit some bumps with Swiss regulators leading to its collapse. In the end, close to $190 million was lost.

Premium Income Corp Forex Scam Size $100 Million

Gerald Rogers was the brains behind Premium Income Corp that promised enormous returns to investors who wanted to invest in the forex market. At its peak, the company collected close to $100 million, but following complaints to the SEC, the company opted to restitute $36 million. However, a good number of investors ended up losing their investments

Black Diamond Forex Scam Size: $35 Million

Keith Simmons and Deanne Salazar took advantage of the financial crisis to pull out one of the biggest forex frauds between 2007 and 2010. While operating a number of hedge funds, the duo tricked as many as 240 people into investing a total of $35 million in the forex market.

The hedge funds turned out to be Ponzi schemes that eventually went down with people’s money. Authorities finally caught up with the two resulting in a 40 years’ imprisonment for Simmons as Salazar got 4.5 years.

Timothy Coughlin Forex Scam Size: $12.8 million

While claiming to be a former naval pilot, Timothy Coughlin went on to scam more than 5,000 investors. He had promised the investors impressive returns on investing in the forex market. At the peak of what turned out to be a forex fraud, Coughlin had accrued close to $12.8 million.

Luis Alonso Serna Forex Scam Size: $4 Million

Novice investors and traders are most likely to trust a person who claims to be a man of God. With a title of pastor, Luis Alonso Serna propagated one of the biggest forex scams that saw his congregation lose more than $4 million. While marketing a trading platform, the pastor promised his congregants monthly returns of as much as 20%. Most people took loans on their homes, not realizing that not even the most successful forex trader can guarantee such gains in a month.

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Ruchi Gupta

Ruchi Gupta covers various beats from finance to technology and from lifestyle to hobbies. She has an MBA in Finance. Ruchi enjoys writing on celebrities and political news. She likes traveling and exploring places.

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