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Corechain Audited
Christopher MichaelMichael Fraud Recovery Advocates · Austin

Case study · Offshore broker scam

A forex 'managed account' with an offshore broker

An unlicensed broker took deposits by card and wire for a 'managed' forex account. Card disputes and one bank recall brought some of it back.

$1.08M

Lost

$226,000

Returned

14

Disputes filed

§ 01The brief

The client was cold-called by an 'account manager' and over nine months deposited $1,080,000, some by credit card and most by wire. The broker's licence number belonged to a different firm.

§ 02What I did

  1. 1.

    Confirmed the broker was unlicensed and that its claimed licence belonged to another company.

  2. 2.

    Filed card disputes for the in-time deposits as services not provided, and asked the bank to recall the most recent wire.

  3. 3.

    Filed the CCS report and a complaint with the provincial securities regulator.

§ 03The outcome

Card disputes returned $145,000 and the bank recall returned $81,000. Earlier wires had gone overseas and could not be recovered.

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