FX Ponzi Scheme Defrauded $180m, Director Faces 10 Years in Jail

The Australian Securities and Exchange Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) informed on Tuesday that the preparator of the $180 million foreign exchange (FX) Ponzi scheme pleaded guilty at the Downing Centre Local Court. Tony Iervasi, a former Courtenay House Director, faces up to 10 years imprisonment and a fine of $810,000.

The Courtney House companies, Courtenay House Pty Ltd (in liquidation) and Courtenay House Capital Trading Group Pty Ltd (in liquidation), stated that investors' funds would be traded in futures and FX markets. However, as the court found, only 3% of the $180 million belonging to approximately 585 investors made it to the real market. Traders did not receive a return on their investment, and their withdrawals were covered by the deposits of people who joined the financial pyramid later.

"In addition to offering purported 'standard' investment products, Mr Iervasi ran several 'investment specials' to encourage trading. In December 2016, Mr Iervasi invited clients to invest in a 'US Election Special Trade' which was to take place between 1 January 2017 and 1 February 2017 to coincide with the Inauguration of President Trump, as a way to invest in what Mr Iervasi claimed was 'fast-money markets'," ASIC commented.

Iervasi heard a total of five charges. Four of them relate to engaging in dishonest conduct that allegedly lasted for nearly seven years. He served as a shareholder and the Sole Director at Courtenay House during that time. Meanwhile, the fifth charge refers to conducting unlicensed financial activities. Courtenay House companies did not have valid Australian Financial Services (AFS) authorization.

The Market is Changing, but the Pyramid Schemes Remain

Iervasi's case is, unfortunately, not the only one. The market regularly reports on fraudulent companies or individuals who have embezzled money belonging to unsuspecting investors. Although the financial instruments and fraud methods change, the basic operations of pyramid and Ponzi schemes remain the same.

In September, the US Department of Justice announced that the EmpiresX cryptocurrency Ponzi scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term mastermind pled guilty. The scheme itself defrauded $100 million. The US Securities and Exchange Commission (SEC) just yesterday charged the creator of another big pyramid scheme, Trade Coin Club, for defrauding $295 million from more than 100,000 customers.