Category: The CFTC and NFA’s underlying SCAM involvement explained

FOREX WARNING BLOG- do u want me to keep writing it? is it helping anyone?

I feel like no one cares. Like I’m wasting my time.

If you want me to keep going than please say so.

My whole goal is to try protect people from getting scammed by the whole change in the FOREX market from real to simulated. While 9 thousand people have visited my blog- most come to try put advertising in the comment sections.

I’ve had maybe 25 real comments. Is that all the real readers I’ve had?

If this blog has helped you- please let me know, Gathering the information takes a lot of time and is pointless if no one is making use of it.

COMMENT IF YOU WANT THIS BLOG TO BE CONTINUED….

CFTC makes $463 MILLION in 5 mos in fines while VICTIMS only get partial restitution.

The CFTC is a private agency that acts as industry regulators. They file actions against violators and collect money for the following 5 purposes-

  • restitution
  • loan payoff
  • civil penalties
  • fines
  • sanctions

Restitution and loan payoffs get paid out

The penalties, fines, and sanctions are kept by them.  I added up how much of this category of money they collected from Jan , 2013 to May 31, 2013 – a total of 5 months.

TOTAL MONEY COLLECTED FOR FINES  $462,907,959.00

THAT’S JUST SHY OF $463 MILLION in 5 months!  (can you imagine their pay checks!)

463 million that means they gross over 1 BILLION a year. Operating costs can’t justify this level of GREED.

At the same time- victims are getting shorted in restitution. The shortage is being taken by the CFTC. They often pay themselves equal to the victims-

This isn’t like collecting insurance money from an accident! Its acceptable for the lawyers to keep half because the money is being paid for suffering- it’s not a repayment of money lost. The CFTC is acting like its ok to short people of money that was stolen from them! This isn’t ok.

PROOF:  

Over and over cases read like this:

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  • funds involving at least $22.5 million.
  • pay restitution of $11,437,573 to defrauded customers.
  • civil monetary penalty of over $11.4 million

Customers lost 22.5 million but get back only half!  WHY? Because the CFTC TOOK THE OTHER 11.4 million for themselves! This is just wrong!!!

(http://www.cftc.gov/PressRoom/PressReleases/pr6590-13)

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  • accepted more than $4.7 million from retail public customers
  • restitution of approximately $3.2 million to defrauded customers
  • a $1.5 million civil monetary penalty.

So why do the victims get shorted by 1.5 million ? Why does the CFTC get to take the 1.5 million that would have paid them back in full?  This is unjust!

(http://www.cftc.gov/PressRoom/PressReleases/pr6653-13)

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  • solicited more than $1.3 million
  • pay $1,146,000 in restitution to their defrauded customers
  • and a $1,337,000 civil monetary penalty

That means customers were shorted by 154k while the CFTC kept 1.3 million. How is this acceptable? case link  (http://www.cftc.gov/PressRoom/PressReleases/pr6690-13)

The king pins of the biggest fraud scam in the world,(NFA) co-sponsor “avoiding fraud” talks at Money Smart Week! Hypocrites!

Copied off the official NFA web site.

Resource link: http://www.nfa.futures.org/NFA-regulation/regulationNewsRel.asp?ArticleID=4215

This is such a joke! The king pins of the biggest fraud scam in the world are co-sponsoring avoiding fraud talks! Talk about trying to throw people off!

For anyone who saw the series BREAKING BAD about meth manufacturing etc  – you can compare the NFA to the owner of the chicken franchise- always supporting anti drug projects! 

People- you have to complain- it takes more than just me fighting to make something happen. YOUR BEING SCREWED OUT OF YOUR MONEY- GET MAD! TAKE ACTION! They collect millions in sanctions- and give none of it to the victims! Fight for your share of the sanction money!!!

___________________________________________________

For Immediate Release
April 19, 2013

For more information contact:
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org

National Futures Association, CFTC, AARP and Chicago Department of Family & Support Services co-sponsor “Avoiding Fraud is Your Best Money Strategy” during Money Smart Week

April 19, 2013, Chicago – National Futures Association (NFA), the Commodity Futures Trading Commission (CFTC), AARP Illinois and the Chicago Department of Family & Support Services (DFSS) will cosponsor a series of seminars that aim to provide individuals and community leaders with the tools they need to help protect themselves and others from investment fraud.

The seminar, “Avoiding Fraud is Your Best Money Strategy,” will be held on Thursday, April 25 from 11:30 a.m. to 1:00 p.m. at the Renaissance Court in the Chicago Cultural Center, which is located at 78 E. Washington St., in Chicago, Ill. The sponsors also will present a reprise of the seminar on Friday, April 26 from 10:00 a.m. to 11:00 a.m. at the Southeast (Atlas) Senior Center, located at 1767 E. 79th St., also in Chicago, Ill.

“Given today’s economy, it’s more critical than ever for consumers to be careful with their money and ensure they’re making smart investments,” said NFA Senior Vice President Karen Wuertz. “We want to ensure that everyone has access to as much information as possible and help them to make the best possible decision when it comes to trusting others with their money.”

These seminars are just part of a series of free classes and activities promoting financial education that will take place during Money Smart Week Chicago, a nationwide public awareness campaign designed to help consumers better manage their personal finances. Coordinated by the Federal Reserve Bank of Chicago, Money Smart Week runs from April 20 to 27.

“The consequences for fraud victims can be pretty horrific�people losing money for their kids’ college funds, for needed health care expenses, or for their own retirement,” said CFTC Commissioner Bart Chilton. “In many instances it is preventable with a little education and some due diligence fact checking.”

During the seminars, representatives from AARP, the CFTC and NFA will provide attendees with advice on how to identify the warning signs and avoid investment fraud.

“AARP research shows that consumer fraud, identity theft and protection from unfair and deceptive financial practices is a concern for more than 70 percent of AARP members in Illinois,” said Ryan Gruenenfelder, Associate State Director for AARP Illinois. “We’re pleased to join with our partners to provide consumers with the information they need to protect their assets and have greater financial security peace of mind.”

Anyone wishing to attend the program should pre-register by calling (312) 781-1454.

Resources

CFTC – www.cftc.gov/consumerprotection
NFA – www.nfa.futures.org/NFA-investor-information/index.HTML
AARP – www.aarp.org/money/scams-fraud

For more information on Money Smart Week events visit www.moneysmartweek.org.

 

 

The FOREX TRADING lie = WHITE COLLAR CRIME. Who do you call? THE FBI

It’s been a couple weeks since I filed complaints with every branch of the trade industry and consumer protection agencies (6 total) and there has been no results. I have to consider that the level of corruption goes up higher than I thought- involving not just the NSA but also the CFTC. 

Not even the American Gaming Association has reacted to the fact that forex trading platforms- upon becoming self contained systems- became legally a “Gambling Machine” or a tool for “Online Gaming” – both of which fall under their jurisdiction.

CNN replied with a “thanks for your story” but no action has followed. The Attorney General said the CFTC has to address it before they can.  I thought there was nothing more I could do- then ***ping! Duh! This is a federal crime happening on a national level- federal crime = FBI

I think it’s pretty pathetic for just 1 person …. me…. to be fighting so hard to stop something that doesn’t even affect me. I’m doing this to try stop you- the person reading this that does trade “forex” from being ripped off.

People- it’s time for YOU to do your part- COMPLAIN TO THE FBI  ask your broker questions- demand to know if your trading against a computer program. Ask them if your orders are called out- pooled and submitted to anywhere at all- or is it like that blogger says- all my orders are processed right on the platform. Ask them how many platforms are supervised per employee. And are they allowed to alter or adjust the contract price after the transaction has been completed? FIGHT BACK!!

Most importantly- ask to see the companies financial report- the page that shows how much was paid out to customers in 2012.  I noticed a few days ago that on all these financial reports- there’s no line that shows how much was withdrawn by customers that was in excess of what the put into the account. WHERE DOES IT SHOW PROFITS PAID OUT 

Why is that…… oh… I know……………………………………. there aren’t any.  

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White-collar crime is financially-motivated nonviolent crime committed for illegal monetary gain.

___________________________________________________________________

Within criminology, it was first defined by sociologist Edwin Sutherland in 1939 as “a crime committed by a person of respectability and high social status in the course of his occupation“.

__________________________________

The FBI has adopted the narrow approach, defining white-collar crime as “those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence” ____________________________________________________________

  1. Attempt and conspirac
  2. Material involving sexual exploitation of minors
  3. Mail fraud – frauds and swindles
  4. Bank fraud
  5. Prohibition of illegal gambling businesses

_______________________________

Some forms of corruption—-now called “institutional corruption”[2]—-are distinguished from bribery and other kinds of obvious personal gain. Campaign contributions are the prime example. Even when they are legal, and do not constitute a quid pro quo, they have a tendency to bias the process in favor of special interests, and undermine public confidence in the political institution. They corrupt the institution without individual members being corrupt themselves. A similar problem of corruption arises in any institution that depends on financial support from people who have interests that may conflict with the primary purpose of the institution.

The UNITED STATES FOREX TRADE INDUSTRY has become corrupt.

The BIG Forex lie you believe is real (Your not trading Forex) PROOF ITS A SCAM

The number one issue traders face right now is misinformation. Those running the retail forex industry know that traders are unaware that the whole trade environment switched from real to 100% simulated in the US and parts of the UK.  Any trader who searches for information on Google or Bing will come up with the answers I posted below. They explain forex the way we think it is now. But its actually only the way things used to be. This old information is keeping thousands of traders from seeing the truth.

The truth is only found on the NFA website and only if you dig deep.  Here is the link to read it in detail for yourself-http://www.nfa.futures.org/nfamanual/NFAManual.aspx

It clearly states that

  • All traders and businesses with less than 10,000 million in assets is labeled a “Customer.”
  • “Customers” trade the “Retail Market” “OTC”
  •  The “Retail Market” is only traded Off-Exchange
  • On all Off-Exchange transactions, the broker acts as the only counter party.
  • That they can only claim “no slippage” if they dont have access rights to adjust the price orders were closed at- after the ordered was executed.

 

The blue italicized writing is comments by me. Red is critical info. as is bold Lettering.

 

Tell every trader the truth. Demand simulated trading be recategorized as online gambling, The difference between the old platforms  and the current ones is what the program is being used for. The real platforms are nothing but data pushers. A way to pass numbers back and forth with accuracy- and with a record of the transaction. Like paying for something with your pay pal account. It processes the numbers and transfers the money for you. 

The new platforms are no longer a tool that a broker uses to transfer orders back and forth between people. The new platforms are running self contained simulated trading games that trade against you right there on the platform. Your orders are not sent to any bank or other traders. It’s just like playing on line slots. You put real money in an account and virtually pull the lever and see if you win. You know its rigged to make you loose. So are the trading platforms. (You didn’t loose your touch in the last 5 years- they just started cheating).

The following definitions came from wipikidia and Investopedia. The 3rd definition is thru the UK. You can tell they basically copied what the the other page said.

What they describe is what most traders think they are doing-  You think your using a trading platform to trade on the Interbank trade network.  Your trading all by your self against a computer game programmed to make you loose.

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Definition of ‘Interbank Market’

The financial system and trading of currencies among banks and financial institutions, excluding retail investors and smaller trading parties. While some interbank trading is performed by banks on behalf of large customers**(accounts over 10 million only), most interbank trading takes place from the banks’ own accounts.
Investopedia explains ‘Interbank Market’

The interbank market for forex serves commercial turnover of currency investments as well as a large amount of speculative, short-term currency trading. According to data compiled in 2004 by the Bank for International Settlements, approximately 50% of all forex transactions are strictly interbank trades. (not any more)
http://www.investopedia.com/terms/i/interbankmarket.asp#axzz2LSo5nm3P
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Interbank foreign exchange marketFrom Wikipedia, the free encyclopedia

The interbank market is the top-level foreign exchange market where banks exchange different currencies.[1] The banks can either deal with one another directly, or through electronic brokering platforms. The Electronic Broking Services (EBS) and Thomson Reuters Dealing 3000 Xtra are the two competitors in the electronic brokering platform business** and together connect over 1000 banks.[1] The currencies of most developed countries have floating exchange rates. These currencies do not have fixed values but, rather, values that fluctuate relative to other currencies.
** The only real platforms
The interbank market is an important segment of the foreign exchange market. It is a wholesale market through which most currency transactions are channeled. It is mainly used for trading among bankers. The three main constituents of the interbank market are

the spot market
the forward market
SWIFT (Society for World-Wide Interbank Financial Telecommunications)

The interbank market is unregulated and decentralized. There is no specific location or exchange where these currency transactions take place. However, foreign currency options are regulated in the United States and trade on the Philadelphia Stock Exchange. Further, in the U.S., the Federal Reserve Bank publishes closing spot prices on a daily basis.

Market makers

Unlike the Stock Market, the Foreign Currency Exchange Market (Forex) does not have a physical central exchange like the NYSE does at 11 Wall Street.[2] Without a central exchange, currency exchange rates are made, or set, by market makers.[1] Banks constantly quote a bid and ask price based on anticipated currency movements taking place and thereby make the market. Major Banks like UBS, Barclays Capital, Deutsche Bank and Citigroup handle very large currency trading (forex) transactions often in billions of dollars.[1] These transactions cause the primary movement of currency prices in the short term.

Other factors contribute to currency exchange rates and these include forex[3] transactions made by smaller banks, hedge funds, companies, forex brokers and traders. Companies are involved in forex transaction due to their need to pay for products and services supplied from other countries which use a different currency. Forex traders on the other hand use forex transaction, of a much smaller volume with comparison to banks, to benefit from anticipated currency movements by buying cheap and selling at a higher price or vice versa. This is done through forex brokers who act as a mediator between a pool of traders and also between themselves and banks.

Central banks also play a role in setting currency exchange rates by altering interest rates. By increasing interest rates they stimulate traders to buy their currency as it provides a high return on investment and this drives the value of the corresponding central bank’s currency higher with comparison to other currencies.
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Interbank Forex Markets Explained

The Interbank forex markets, as obvious from the term, is the highest level in the foreign exchange markets where banks exchange currencies directly with one another. The Interbank forex markets can also be referred to as the forex wholesale market where most of the currency transactions are performed and is mostly used for trading within the banking community. The interbank forex markets is unregulated and decentralized, thus there is no central location or an exchange where these transactions take place, unlike the stock markets where transactions are carried out at the stock exchange.

What comprises the Interbank Forex Markets

The Interbank makers is made up of three components.

Spot markets: Also known as the organized or OTC (over the counter) market. This is made up of cash market is known as the publish financial markets where financial tradable instruments and/or commodities are traded for immediate delivery. The spot market prices are individually agreed between the parties and therefore the prices are usually not published. The spot markets entails a two day delivery period in order to move cash from one bank to the other. The online forex trading markets is usually comprised of the spot markets as trading is purely speculative driven and transactions are done on the spot.

Forward markets: The forward markets is over the counter financial markets that dealins in the CFD’s or contracts for differences for future delivery. Forward markets are also known as forward contracts and are personalized between the buyer and seller which includes the delivery time and amount which is usually determined at the time of the transaction.

SWIFT: Most of us who have ever made an international bank WIRE would have heard about this or BIC (Bank Identified Codes). SWIFT is an acronymn for Society for Worldwide Interbank FInancial Telecommunications. SWIFT is used to send payment orders that are usually settled via the correspondent accounts which the banks have with each other.
What moves the Interbank Exchange Rates

Due to the fact that the forex market is decentralized, banks set their own bid and ask prices taking into account any anticipated currency fluctuations that might take place. It is safe to say that the forex market is actually made up of market makers due to the fact that banks have their own price quotes. Large scale banks such as UBS, Deutsche Bank, HSBC, Citigroup handle large volumes of currency transactions and it is due to the movement of this volume which is the primary driver of the currency prices, especially in a short term perspective. Of course, there are other factors that influence the Interbank exchange rates such as hedge funds, smaller banks and online forex brokers and traders.

How do forex traders fit into the bigger game

Forex traders make money by purchasing one currency and selling another currency. The difference in the bid and ask price of these currencies is how profits are made. Therefore, forex traders are familiar with the term, buy low sell high. Forex traders make their profits by the fluctuations in the currency prices as cited above. ECN Forex brokers are the kind of brokers that connect forex traders straight to the tier 1 liquidity providers made up of banks and financial institutions. It is because of the interbank forex markets that ECN forex traders get to see pricing where in most cases the spreads are almost zero.

Read more http://www.ecnforex.co.uk/interbank-forex-markets-explained/
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NFA supporting their lie:

NFA definition of on vs off exchange

SOME foreign currency contracts are traded off exchange? they make it sound like it happens occasionally instead of the 100% off exchange trading done for all retail customers. All with less than 10 million.

 

My complaint about change of definition of term “Forex Trading” from “on exchange” to “off exchange”

My complaint is against the NFA and or whichever agency authorized the change in definition of the word FOREX from it’s globally known meaning of: Transactions conducted ON the Foreign Exchange, to its new meaning, as written on the NFA website as OFF-exchange transactions. Further more, their rules indicate that it no longer includes on-exchange transactions.

The word FOREX is the short for Foreign Exchange. (FX as well)

All but one on line dictionary still defines FOREX to exclusively mean On-Exchange trading

Changing the meaning of such a global word to its opposite meaning is the root cause for the trade industry fraud problem. Customers believe they are trading on the real foreign exchange. According to the NFA rules- “person with less than 10 million in assets and most small businesses are referred to as “customers” and that they trade “OTC” on the “retail market”.

Retail market = simulated trading done on gaming platforms accessed thru the internet. They’re programs the brokerage creates.They’re  separately accessed by each customer. They play against the program. The broker is legal counter party cuz  they control the program (some firms partner with other firms to act as “an outside bank” to support claim to trade with “financial institutions”)

The programs combines the current stock market movement with algorithms to produce charts that appear to be following the real market, while simultaneously responding to the trading patterns of the customer- adjusting the market as needed to cause them to loose their money.

There have been hundreds of cases regarding accurate order execution, slippage, program freeze. All the complaints have the same core issue- The trading does not behave as expected. As it should. As it used to. And they are correct. Over the last few years- electronic trading was shifted from being real to being simulated.

The industry regulator, NFA, shifted the term FOREX along with it. allowing brokers to continue calling what they offered “Forex Trading”. It allowed the entire industry to delude customers  into thinking they’re  trading  real accounts.

The NFA’s advertising rules don’t address the use of the word FOREX in any way .. They have abused their position of authority to the determent of the public., there is no defense to switching the definition of a word that could not be switched without deluding people! The only possible reason to switch it was to delude the public. It was done intentionally to defraud the public. By who’s authority can any country change the meaning of a globally established word? To allow it would cause obvious confusion in other countries.

The NFA says its a not-for-profit, yet benefits from a thriving market 3 fold. 1)They collect .002%  of all off exchange transactions they monitor (and all transactions require monitoring) which I just read is 1 trillion a year.  2) annual membership dues that range from 125k to 1 million 3)sanction fines (non disbursed money) which average 30k- 125k

I strongly recommend auditing their financial records because their public financial record shows conflicting numbers- claiming to take in less than 200 million- and ending the year with the almost the same 7mil surplus they started the year with. .002% of 1 trillion plus the membership dues- not counting the sanction fees is already over 1 billion a year. This doesn’t include the .005% they get from institutional accounts.

All the data above was collected off their website and the other regulating authorities of the forex market. Laws and rules are from the Trade commission website. NFA financial records were obtained via google search.

Action taken so far: I filed complaints with the U.S. Commodity Futures Trading Commission , The office of consumer affairs, with the NFA (against their actions), The consumer protection agency and the US Attn General. I  also started a White House Petition to have the definition restored. link to petition: http://wh.gov/VSjV  The petition isn’t likely to get enough signatures unless someone does a story on it. I reported about it to both CNN and FOX11 in LA. No response from either. Did all this in the last few days- after discovering the altered definition on the NFA’s website. The CFTC responded saying they got my report and don’t usually update complainers unless, and when it goes to court. The US Attn General said to report it to you.______________

is the word FOREX the trade mark of the Foreign Exchange

Regarding trademarks- legally registering a trademark isn’t always necessary for a word that’s a title or name of something that’s globally recognized, to be protected. A car is a car. A swing is a swing. You simply cannot label it a rocking chair because it has similar movement. It’s just not done. A scooter isn’t called a bike.

Foreign Exchange (FOREX) means transactions traded on the exchange market. Therefore-cannot also mean transactions made on a simulated trading gaming platform.

The NFA is being targeted because they are the ones regulating the industry. They are responsible for protecting people from being taken advantage of. They know the obvious confusion the dual use of the term is causing. Not doing something about it, worse yet- further integrating the word is what makes them liable. If they were really trying to protect the customers-while still using the word FOREX- they would have all advertising contain a disclaimer-informing customers of the change of meaning.

The possibility of customer confusion about what product or service they are signing up for isn’t even mentioned on the NFA site. Seems like an important topic to skip completely.

I have a suggestion. Forex Army: Lets find out how many people understand what FOREX Trading is. I used the term Market to follow NFA’s labeling.

Please run the following multiple choice poll on your home page. Its as unbiased as I could think of. Either they know the answer or they don’t.

The FOREX Market is:
A. Foreign Exchange Transactions
B. Off-Exchange Transactions

The Retail Market is for:
A. Small investors to trade on Off-Exchange on simulated Trading Platforms.
B. Small investors to trade on the Foreign Exchange using Trading Platforms

Assets required to trade on the Foreign Exchange?
A. 125 thousand
B. 500 thousand
C. 1 million
D. 10 million

If I’m wrong- I’ll walk away. Staff members cannot answer poll.  Dare to find out the truth. I think for a poll’s results to be considered a valid representation, it has to be answered by 2,000 people.