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Texas Action Against Fraudulent Forex Scheme

Date 10/10/2018

Earlier today, the Texas Securities Board entered an action against Go Forex Group. The action found Go Forex Group is illegally soliciting investments in a forex, real estate and oil and gas program. Investors were told they would receive guaranteed lucrative profits at the end of a relatively short term - typically 21 days. The investments were purportedly safe and secure, as Go Forex Group allegedly claimed it secured insurance from an unidentified firm to ensure the payment of returns to investors. 

 

 

The other allegations are serious, and as they suggest, anyone can be anyone on the Internet. From startup businesses to brand new scams, promoters can easily manipulate online media to bolster false claims of experience, legitimacy and professionalism. The manipulation of electronic media can even allow bad actors to impersonate established businesses with a history of success in trading forex - or dealing with any other investments - for a profit that exceeds the returns associated with the market.

 

The emergency action alleges, for example, that Go Forex Group was proving investors with a fake address for its business offices. Moreover, the action found that Go Forex Group published a certificate of incorporation that falsely claims the firm was incorporated in Michigan. The certificate was found to be created using image-editing software to make changes to a government record for an unrelated corporation organized in Belize. The doctored certificate of incorporation is allegedly being used a part of a scheme, and serves to convey the false impression that Go Forex Group is actually compliant with the law. 

 

 

It doesn’t stop there. Go Forex Group was also found to be publishing false testimonials, including a fake testimonial from a contributor to National Public Radio. These testimonials appeared on Go Forex Group’s website, and consisted of photographs of persons who claimed to have invested and received a return on principal. The Enforcement Division’s investigation found that the photographs were published without authorization, and the persons depicted never invested with Go Forex Group. Absent this information, however, the false testimonials would have served as endorsements, encouraging unwary investors to use their savings to purchase an investment in an offering found to be a fraud. 

 

 

Investors navigating the universe of online securities offerings need to be wary of such tactics. In many cases, investors may believe they are tendering their savings to a reputable firm. They only later learn, when they do not receive promised returns or are unable to locate an issuer, that they may be victims of a fraudulent securities offering. It’s a dangerous situation, and one that may lead to the loss of the entirety of their principal investment. 


Promoters of online fraudulent schemes often rely on investors accepting their representations at face value and not attempting to independently verify the veracity of the statements. Investors can protect themselves by conducting thorough due diligence before sending their money through a website or to a party they meet online. State regulators can assist in the due diligence process by, for example, providing public information about an issuer or disclosing any registrations to sell investments. The North American Securities Administrators Association maintains a list of contact information for state securities regulators, and the list can be accessed at http://www.nasaa.org/about-us/contact-us/contact-your-regulator/