Help with recovering Money lost in Forex Fraud
Investment fraud is a fast-rising crime that thrives on a challenging economic climate. The current global situation whereby thousands of people find themselves unable to work or having been made redundant and in an unexpectedly in a precarious financial position is just the right breeding ground for fraudsters to prey on novice investors. It should also be recognised that, fraud aside, the markets are volatile and precarious and even seasoned traders sometimes miss the signs that the markets are weakening.
Gareth Gates, the singer, has opened up about his sobering experience when attempting to duplicate his wealthy friends’ successful returns on their Forex investments. He explains in an interview reported in the Sunday Times Fame & Fortune column that despite having a level-headed attitude towards his finances, he regrettably lost the colossal sum of £250,000 in a Forex investment. Gareth, in his own words, “probably invested more money than he should have” when the Forex market was dropping.
Individuals who have little or no knowledge of the fluctuations of the markets can easily be enticed into a scam by an unscrupulous broker. Giambrone’s financial scam team are very familiar with the wide range of approaches the fraudsters use to part the inexperienced unwary investor from their money. One well-known tactic is when the fraudsters initially actually provide the promised returns, thereby encouraging the victim to invest larger and larger sums. The next step is either the firm crashes and the broker vanishes or the returns start to reduce and the investor is encouraged to “trade out of the losses by investing more money” this tactic is maintained for a short while before the same outcome ensues, firm and the broker vanishes and the money is lost.
Joanna Bailey, an associate who heads the financial scam litigation team commented “any novice investor should take the time to thoroughly research the broker they are dealing with. If there is an attempt to rush them into an investment with an unusually high return this should act as a warning sign” she further commented “funds lost in a Forex scam can be extremely hard to recuperate. My team has a strong track record of being able to follow the money and recover our clients’ money lost to scam investment schemes.”
When an investor loses a significant amount of money they may feel the prospects of recovery look bleak but it is not necessarily a hopeless situation, there are ways of clawing back the lost funds. The expert lawyers in Giambrone’s financial scam litigation teams have evolved a number of successful strategies to assist clients in the recovery of their funds lost in scam schemes. Joanna Bailey and her team recently successfully recovered a six-figure sum for a relieved and delighted client who had been duped by a fraudulent broker. The lawyers having recognised that third party liability lay with the facilitating banks, they were confident that an application for restitution of the lost money would be successful. All too often a victim of Forex fraud feels that recovering their money is a hopeless task but this is not necessarily the case, Giambrone has a reputation dogged persistence, when pursuing bogus Forex brokers and enjoys an enviable level of success in recovering money for our clients.
Joanna Bailey pointed out “whilst the banks involved that inadvertently facilitate the fraud by sending the money to the fraudster are clearly culpable, it often still requires considerable tenacity on the part of the lawyers before the liability is acknowledged and a payment is forthcoming” she further remarked, “banks have a duty of care towards their customers however, it is noted that they are often reluctant to fully engage, even when their obligation is clear, drawing out the process and waiting until the last minute before a settlement is forthcoming.”
Giambrone has also been instrumental in exposing fraudulent brokers and frequently assists the regulators and law enforcement agencies with their efforts to track down fraudsters. The lawyers in the Giambrone financial scam team recently achieved an outstanding victory in a cross-border class action which resulted in the participants being awarded $150 million to be distributed amongst the victims of the scam which had drawn in hundreds of individuals across the world.
Fraudsters operate from all corners the world, nearly always choosing locations that are not subject to any regulating force, such as the Financial Conduct Authority (FCA), whilst claiming to be regulated to encourage investor confidence. The FCA provides a register of regulated brokers and also a warning list composed of firms that should be avoided. If the broker is not registered with the FCA, the Financial Services Complaints and Compensation Scheme does not apply. Giambrone’s lawyers warn that bogus brokers are known to clone legitimate firms using their FCA registration details. If the address and contact details of the broker assisting you are different from those that the FCA holds it is highly likely that they are a fraudulent clone firm.
Even if money has been lost in a Forex scam there is always the possibility that there may be a way to recover the funds; there are many routes to recovery and it may well be worth making an attempt.