Francswiss: online scam?

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The Securities and Exchange Commission (SEC) has warned the public against five online firms namely Francswiss, Swiss Cash, Universal Forex System, Global America and Private Forex Trade Inc.

These five companies according to SEC are not registered entities and are thus not authorized to solicit investments from the public. Moreover, they are engaging in what you call Ponzi schemes.

A Ponzi scheme is a type of investment fraud wherein an operator promises high financial returns that are not expected from traditional investments. Instead of investing the victims’ funds, the operator pays the original investors with the money given by subsequent investors. Usually, enough money is returned to the original few investors to make them believe that profits are actually being realized.

Companies using the ponzi scam have no addresses, making it nearly impossible for duped investors to run after them. They also use spurious documents to make it appear they are legitimate.

Posted in Internet