Three Scam Forex Brokers Gone – ForexGen, SigmaForex, VelocityForex

(Hopefully For Good)

by Pharaoh

Suffering from an untreatable case of writing addiction.

I’d like to thank the FPA’s Scam Investigations Committee for letting me write this article. I’ve been waiting for this day to come for a long time now.

Back in the ancient days, when the Earth was still cooling and the FPA was still called ForexBastards, a very bad brokerage ripped off a trader. Felix posted what Rob wrote about this company in the forums. Suddenly, a bizarre fellow showed up in the forums here promoting these scammers. I then caught this guy spamming many dozens of web forums with fake advertisements pretending to be conversations between potential clients and happy customers. Once ForexBastards became the FPA and Scam Investigations were formalized, they scammed another trader, refused to even reply to messages from the trader or the FPA, and then attacked the FPA with hundreds of blogs filled with half-truths and lies. Throughout all this time, the number of complaints against this broker was amazing. Last year, they tried to negotiate with the FPA to get the scam findings lifted, but broke off all contact when the FPA asked them to remove 25 of the hundreds of remaining hate blogs.

A few weeks ago, I noticed that their website was down. I didn’t say anything publicly. Announcing that a scam broker had gone out of business only to have them pop up the following week with a BS story about how the FPA orchestrated the whole thing would be a bit embarrassing.

I dug deeper. Emails send to the broker didn’t bounce, but went unanswered. I found a small part of the website still functional and tried the live chat. Clicking on it gave me an “Your request could not be completed because the account you are trying to reach is disabled. ” error. I got word from a friend that their MT4 demo server seems to be offline.

I wish the scam cases could have been resolved, but this brokerage’s scam rotted it to the core. Sometimes, a company is so bad that there isn’t really any hope of reform. I am proud to say that the warnings issued by the FPA helped put an end to this broker’s reign of forex account destruction.

I now feel sufficiently confident that they are really gone that I’m willing to announce the death of the worst scam brokerage the FPA has ever dealt with. I can’t even begin to express my happiness in announcing that

I’d like to thank every member of the FPA as well as every reviewer who told how they were mistreated. Combined action to warn potential customers about these scammers helped to finally put them out of business.

Discussion article for all 3 cases against ForexGen.com

Complaint for Case 1 against ForexGen

Complaint for Case 2 against ForexGen

Complaint for Case 3 against ForexGen

FPA Scam Finding #1 against ForexGen

FPA Scam Finding #2 against ForexGen

FPA Scam Finding #3 against ForexGen

Sometimes, you get a two for one special on good news. There’s another broker that was declared to be a scam in early 2010. Some people linked it to ForexGen, but there never was any solid proof. At about the same time that ForexGen.com’s website went down, I noticed that this broker’s website was also down. It looks like these companies really are somehow linked, since both websites had been moved to the same private server in a hosting facility.

This broker spent months skimming the edge of scam findings. Getting simple withdrawals took 2 months or more in many cases. FPA Investigator Tessa had to threaten them with a scam finding over and over again to pay money that they admitted that they owed. The brokerage had a business license in the UK, but wasn’t FSA registered. The license is about to be dropped since required reports are overdue.

Like ForexGen, I didn’t want to announce this one and have them come back. It’s been long enough. Whether they really are part of ForexGen or not, I am thrilled to announce that

Once again, it was FPA members and reviewers who helped get the word out. Scam brokerages can only survive on money taken from people who haven’t heard about them.

It was companies like Sigma Forex and ForexGen that inspired me to write about Ethical Vengeance Against Scammers. The fall of these companies shows that not only did the FPA work against them, but that some traders used the methods I describe to to spread the word even farther.

Article about Sigma Forex

Original complaint against SigmaForex.com

FPA Scam Finding against SigmaForex

As I was preparing this, I got a message from the FPA’s AsstModerator to check another scam broker’s website. Their website isn’t giving an error, it’s pointing to a search engine. This company decided it didn’t like traders who made profits, so decided not to pay them.

So, after a first course of fried ForexGen, and a second course of slice SigmaForex, please allow be to present dessert. I am very happy to announce that

The only thing that makes this one less than perfect is that Velocity was just some kind of IB/WL for StartForex. That company continues to operate.

Article about VelocityForex

Original complaint against VelocityForex

FPA Scam Finding against Velocity Forex

Be wary. These companies do look like they really are gone. They might come back under new names. They are more likely to come back under different names. If you have any more information about the people behind these companies, post it here for all to see.

This is what the FPA is all about. Bad brokers can no longer rob traders with impunity. They must pay money legitimately owed to traders. If they don’t, the FPA provides a place for traders to voice their individual complaints as well as to operate as a group to drive business away from those who would steal money owed to traders. It would be nearly impossible for any single person to drive a bad broker under. Only by operating together can we generate enough publicity to make it hard for scam brokerages to hide their crimes from potential new victims.