By Pharaoh
Terry Freeman, head of GFX Capital Markets (www.gfxcapital.ch) got busted on February 9th by the British Police. Anyone having money with his company is requested to contact the City of London Police at this link: http://www.cityoflondon.police.uk/Ci…a/News/gfx.htm
Mr. Freeman has a managed forex company and is accused of running it as a Ponzi scheme. He also kept a blog (http://www.gfxcapital.ch/traderDiary…4_archive.html) where there is an interesting mixture of signs of trouble (complaints of poor communication from the company, difficulty accessing trading records, etc.) are mixed with glowing praise and defense of Terry for the fine job he is doing in troubled economic times. One defender goes so far as to suggest that he should only give one financial statement and chance to withdraw money per year, so that complaints and bothersome record keeping don’t distract from trading.
Sadly, this sort of extreme loyalty is common in cases where a Ponzi scheme has gone on for awhile. Some investors will remain true believers in the integrity of the scammers, even after a criminal conviction is handed down. Others see the light earlier – usually about the time the arrest hits the papers. As I write this, there are a lot of people on the other side of the pond wondering if they can recover any of their life savings.
Please, if you are thinking of letting someone else trade your money for you, read these two articles first:
Ponzi Schemes and HYIPs – Free Money Traps
How Not To Lose All Your Money With A Managed Forex Account
NOTE: I do not know if gfxcapital.ch is related to gfxcm.com or not. There are many similarly named forex companies out there. I did try to call gfxcm’s New York office before posting this, but only got voice mail.
Brought to you by Alan’s Forex Blog:
http://alansforexblog.com
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