Many people are probably not familiar with forex trading. Forex trading is the name for the very speculative investing in trading foreign currencies. It definitely is not an investment for inexperienced investors and while it certainly is legal, there have been many scammers who use forex trading as a hook to scam people. Recently, Michael Shannon Sims and Juan Carlos Reynoso were charged with wire fraud and money laundering related to the activities of their company OmegaPro. According to their indictment, Sims and Reynoso operated OmegaPro between 2019 and 2023 posing as a legitimate investment platform in which they promised their investors returns of up to 300% in 16 months through forex trading done by “elite traders” according to Sims and Reynoso. Ultimately, according to the Justice Department, Sims and Reynoso swindled their victims out of more than 650 million dollars.
In fact, no trading actually occurred. Rather, OmegaPro operated as a Ponzi scheme paying off earlier investors with funds derived from later investors. In addition, not satisfied with merely operating a phony investment firm, Sims and Reynoso are accused of operating OmegaPro as a pyramid scheme in which their “investors” would earn payments for bringing in new investor-victims into the scam.
TIPS
No one should ever invest in anything they don’t understand. Forex investing is risky and complicated and should not be done unless you are knowledgeable about trading in foreign currencies. Due diligence should also include reading reviews of the investment company on sites such as Trustpilot and Forex Peace Army.
Before investing with anyone, you should also investigate the person offering to sell you the investment with FINRA’s Central Registration Depository. http://www.finra.org/industry/crd This will tell you if the broker is licensed and if there have been disciplinary procedures against him or her. You can also check with your own state’s securities regulation office for similar information. Many investment advisers will not be required to register with the SEC, but are required to register with your individual state securities regulators. You can find your state’s agency by going to the website of the North American Securities Administrators Association. http://www.nasaa.org/2709/how-to-check-out-your-broker-or-investment-adviser/
If investors had done their due diligence and looked into the backgrounds of Michael Shannon Sims and Juan Carlos Reynoso they would have learned that neither of them had any professional investment licenses, broker-dealer registrations or forex trading certifications.