Forex ethics

From time to time I wonder what motivates someone to perpetrate such a significant fraud? Lewalski, formerly of Gainesville, Fla. Breuer of the Criminal Division and U. Lewalski, 47, pleaded guilty before U. Magistrate Judge Mark A. Pizzo in the Middle District of Florida and faces a maximum penalty of 20 years in prison.

According to court documents, the defendant, who operated a company called Botfly LLC, willfully engineered and executed a scheme to defraud by promising victim forex that he could generate returns of up to 10 percent per month, compounded monthly, through his trading in the foreign currency forex market.

In fact, the defendant operated ethics investment fraud scheme. Lewalski admitted that instead of trading in the foreign currency market as he promised, he used the bulk of victim investor funds to make payments to other investors in forex to perpetuate the scheme and make it appear as if he was generating the promised returns. Lewalski also spent millions of dollars of victim investor funds on personal expenses, including high end real estate, private jet travel, luxury automobiles, computer equipment and jewelry.

LewalskiFOREXfraudprisontrading scamwhite collar crime Permalink Posted by chuckgallagher. Nothing can be more discouraging than to learn a new investment skill, put it work, and forex find out that ethics have fallen for some scam that more experienced traders would have spotted in an instance. The popularity of forex trading in the past five years has been enormous due to easy access to trading platforms on the Internet and to its overall flexibility.

The downside of such popularity, however, is that the criminal element in our society, eager to pounce on the unsuspecting, has jumped into the fray right along with you and your uncle Harry. Law enforcement and forex brokers have policed the area quite a bit over time, but antics from offshore con artists are difficult to eliminate in any field of endeavor where money is involved. So what is a prudent forex trader to do to protect himself from these thieves?

The first thing to realize is that you and you alone represent your immediate and last line of defense. Your awareness of the potential for fraud is a good second step. Ethics your mind to be wary, get your greed in check, and let caution be your guide.

Next is your broker. Again, he should be of high integrity, onshore, well capitalized, respected by his peers, and well recommended by review sites, local business bureaus or government agencies, and by other traders whose opinions you trust.

Lastly on connectivity, are you comfortable with your trading forex platform? Are trades transacted quickly? Do the spreads vary over time? Do backlogs or downtime occur frequently?

These types of problems may be broker related or dependent on how your broker is connected to the market. If they are not up to standard, shop around for a better service forex. Con artists generally update their devious schemes every year, their way of improving the probability that you will fall for their various designs. Scams come in all shapes and colors, but the general appearance will resemble one of these three genres:.

Investment fraud artists can come at you when you least expect it. For this one reason alone you always need to be ever vigilant, skeptical and aware. Put your greed on the back burner, and apply caution when appropriate. FOREX Permalink Posted by chuckgallagher.

He was remanded into custody immediately following the sentencing hearing. This case is the product forex an extensive joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Ethics Division. WARD, a frequent commentator and seminar speaker on forex trading, ran an elaborate forex trading scam through an forex fund he controlled called the Joel Nathan ForexFund.

Now as a white collar crime speaker I must admit, anyone can make wrong choices. WARD concealed his diversion of funds by sending false account statements to investors purporting to show trading profits. He also defrauded investors in a second scheme relating to a purported real estate investment project in Mississippi.

The defendant had proposed that he be allowed to remain out of prison while he attempted to generate funds to repay investors. Every choice has a consequence. And, having spent time in federal prison not something I am proud ofthe time Ward spends will be life changing. Not only will he become a number, lose his identity, and have little to no ability to earn money, he will emerge with limited opportunity to make restitution. Today, I speak nationwide on 1 fraud in business, 2 how to avoid fraud in your company and 3 how business ethics can improve your financial performance.

One thing is for sure — You do reap what you sow! Ward has come to learn that as he is now sleeping on a prison bed. Facing 20 years in federal prison, R. Gregory Gibbs plead guilty to mail fraud in an investigation that uncovered a massive Ponzi scheme. The FOREX is an over-the-counter ethics market in which buyers and sellers trade one currency for another.

Named after Charles Ponzi, a ponzi scheme is forex fraudulent investment operation where high returns are promised to investors and usually paid out of other investors money rather than from profits generated from the investment promised.

Gibbs has acknowledged that although he initially believed that he could make good on his promises of paying investors a large return on their investments, by June ofhis sustained and rapidly growing FOREX trading losses made it apparent that he would not be able to do so. Despite this, Gibbs continued to accept new investor money and made false representations about his trading success and the safety of the client investments.

Specific misrepresentations by Gibbs to many investors included his claim that the majority ethics the ethics that he traded in the FOREX was his personal funds. This statement led investors to believe that Gibbs had significant personal assets and that he could make good on his promised interest payments even if he experienced trading losses in the FOREX market.

In truth, the vast majority of the money traded by Gibbs was investor funds. In truth, he had very limited personal assets — other than those purchased with investor funds — and his mounting trading losses made repayment of the outstanding loan obligations almost impossible given his sustained losses in the FOREX. Most of the time in any white collar crime scheme, some portion of the money stolen seems to end up enriching the one including the family who committed the crime.

As a white collar crime speakerthere is a general pattern of behavior that seems pleasant and pleasurable for a time. Yet, the final outcome — the consequences ethics are far more severe than any short term benefit received. The payments were intended to convince the investors that ethics investments were sound and to conceal the significant FOREX trading losses.

In fact, however, the payments were made from deposits from investors who had come into the scheme later. If anyone knew R. Gregory Gibbs or fell victim to his scheme, feel free to comment. Gregory GibbsspeakertexasWhite Collar Crime Speaker Permalink Posted by chuckgallagher.

Motivational Speaker — Chuck Gallagher Business Ethics and Choices Expert Forex Choice has a Consquence. Scams ethics in all shapes and colors, but the general appearance will resemble one of these three forex High Yield Investment Program: Forex trading involves high risk and forex specialized training before anyone should attempt to trade the first dollar.

A likely forex scam scenario may also tout high levels of leverage as the only path to success. As always, If it sounds too good to be true, it is; Unsolicited Approaches: Rely on your best judgment when evaluating these come-ons; High Pressure Sales Efforts: Hold onto your wallet, and walk the other way when he asks for money, because he surely will at some point. White Collar Crime Ponzi Scheme — R. March 21, Facing 20 years in federal prison, R. The Choices Foundation supports providing ethical educational presentations, workshops, and keynotes to universities, colleges, high schools and religious organizations.

Chuck, and other speakers, talk to young people about ethics, honesty, integrity, the choices they make and the consequences that follow. To reserve an advance copy, set for a spring '08 release date, and support this vital cause contact Chuck at http: Chuck Gallagher is listed at ExpertClick.

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Forex Trading: Real Actions Required Are Difficult to Hear!