Texas Regulator Strikes FX Trader with Cease and Desist Order

A Georgia resident man was ordered today to ‘case and desist’ on charges that he defrauded people by soliciting investments in a phony foreign exchange trading scheme, Texas Securities Commissioner announced.

According to a non-‎appealable cease and desist order, Kenzley Ramos pooled money from investors with the promise that it would be invested in currency markets and “profit off the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term with Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term.” Ramos’ most recent craigslist ad claims “the stock market is crumbling.”

Throughout the write-up, the state of Texas lists a number of details, but it ‎seems that the main issue that the authority has with Ramos’ business ‎is that he falsely touts his currency trading prowess, causing losses for clients.

The watchdog said Ramos solicited investments ranging from $200 to $2,000 from its scam victims to trade forex and binary options by promising spectacular returns and personal guarantees. He touted himself as a accomplished trader that uses a proven strategy that ensures in “no possible way investors can lose money.” He guaranteed high-double-digit returns, up to 300 percent per week, but stipulated that a 15% fee would be deducted from the balance whenever investors withdraw their funds.

Texans warned about coronavirus scams

The documents submitted to the regulator also paint a fairly concise picture of his fraudulent scheme, outlining his interaction and contact with less experienced victims. Details shared today by the state regulator further highlights the deceptive nature of the forex fraud. It further reads:

“In December 2019, one investor sent $1,000 to a bank account owned by Kenzley Ramos, giving it a balance of $1,035. Two days later, Ramos withdrew $1,020 in cash from the account and stopped communicating with the investor. He never paid the promised profits on the account, and never returned the $1,000 principal deposit.”

The Texas state regulator has recently warned Texans about criminals trying to steal their funds using several scams tied to the coronavirus pandemic. The Texas State Securities Board said investors should not be lulled into investment frauds stemming from the ongoing outbreak.

The regulator also warns of the substantial potential for fraud at this time, saying that crooks often try to capitalize on high-profile news events to lure investors into financial cons.

Other US regulators, including the SEC, alerted investors to these schemes, which, like the virus itself, have seeped into the US. The CFTC also identified fraudsters urging people to invest in new stocks related to the disease as among the most prevalent scams attempting to take advantage of the coronavirus outbreak.