London Police Arrest Forex Trader Involved In Alleged Ponzi Scheme

London Police Arrest Forex Trader Involved In Alleged Ponzi Scheme
PeteLinforth / Pixabay

The world of finance and investments is very exciting and certainly there are more information and experiences in the field then one person can master in a life time.  There are so many different investment ideologies and theories that it certainly can be a headache for the average Joe that works and does not have time to site in front of computer all day.

This is why we often see investors hire financial advisors or place money into a fund that is ran by an experienced financial manager. Unfortunately, there are some out there that choose to ruin it for everyone else and make trust between manager and client uneasy.  A great example is that of a Forex trader based in London, United Kingdom.  The trader was arrested this morning by London Police after being accused of running an elaborate global Ponzi scheme.

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57 year old trader ran 30 million British Pounds Ponzi scheme

While the case and the investigation are still on going, London Police arrested a forex trader that was found to have been running a global Ponzi scheme worth 30 million British Pounds.  Detectives closed in on the trader’s home in East Yorkshire and was later arrested after evidence of money laundering and financial manipulation was uncovered.

Police began to monitor and closely investigate the money manager in December 2014, as more than 375 complaints worldwide were filed against this London forex trader.  It was later found out that a “consortium” of investors contributed 4 million British Pounds to the investor in question.

Second major London trading scandal in the last week

Just mere days ago, London Police arrest Navinder Singh Sarao on US charges alleging that Sarao was a major contributor to the “Flash Crash” in early 2010.  Sarao faces 22 charges in the US and is continuing to fight extradition to the US to face trial.

US regulators say that Sarao made $900,000 on the day of the Flash Crash and over $40 million between 2010 and 2014. The trader currently is in a British jail awaiting $7.6 million bail payment to go through.

Ultimately, there are snakes out there that attempt to lure in unsuspecting investors that believe they are getting a “deal”.  If an investment sounds too good to be true, it probably is so do not be another victim of negligence.  Remember to always challenge your financial representatives, make them explain to you what they have planned for your money.  If they are unable to explain it, you just stumbled upon a red flag.

Forex Trader Ponzi Scheme

Infographic source: Best Accounting Degrees

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