An Israeli man living in the US is charged with performing the $6 million Ponzi scheme. Fadi Ewiess is alleged to lure the investors and misuse their assets. Is your broker reliable?
August 4, AtoZForex – An Israeli man residing in the US is alleged of performing a fraudulent scheme in order to obtain investments from investors supposedly for the purpose of trading in Forex.
$6 mln Ponzi Scheme unmasked
As it is reported, 38-years old Fadi Ewiess, operating under the nickname “Fadi Awise”, is suspected in performing the Ponzi scheme, which means using the investors’ assets to pay the profits to other misled investors. Fadi Ewiess was arrested and charged Saturday morning in Fort Lauderdale Florida on a count of plotting the wire fraud and another count of wire fraud. Mr. Ewiess is currently in federal custody in Manhattan. If the alleged violations will be proved, he can face up to 20 years in prison and a fine of up to $250,000 on each of the counts.
“Fadi Awise” was charged with swindling many investors, the majority of whom were based in Saudi Arabia and other countries, which under the Commodity Exchange Act are not authorized to trade leveraged Forex in the US. As it is reported by FBI, their agents determined that Mr. Ewiess and others have ill-gained more than $5.8 million performing the Ponzi scheme. FBI Assistant Director-in-Charge Diego Rodriguez has commented on the matter:
“As alleged, Ewiess ran a multimillion-dollar Ponzi scheme under the guise of a foreign exchange trading company. Instead of using investor money for foreign exchanges, Ewiess traveled and gambled the money away or paid investors to continue to invest in his scheme. Making sure our markets are fair to all investors and bringing charges against those who profit remains a top priority for the FBI.”
Fadi Ewiess was operating with a team
Digging a little deeper into the issue, the complaint suspects that during the period from 2015 to 2016, Mr. Ewiess governed a company that implied to host an online Forex trading platform. Investors were presented two options: to trade the currencies themselves or to let the company trade on their behalf.
“Fadi Awise” is alleged of luring the investors by providing the misleading representations about his ability to generate large returns. Victims of Mr. Ewiess’s Ponzi scheme have invested almost $6 million in one year period, as the complaint states. Moreover, Fadi Ewiess had falsely guaranteed the investors the protection of their assets in case of loss.
After obtaining investors’ assets, Mr. Ewiess has spent the money on his personal expenses and on paying back to other investors so that they invest again. Additionally, Mr. Ewiess has employed other individuals in order to get help performing the Ponzi scheme. He has promised large commissions, as well as the prizes like watches and cellular telephones.
The issue is being under investigation by the Office’s Securities and Commodities Fraud Task Force. US Attorney Preet Bharara has commented:
“As alleged, Fadi Ewiess lied to prospective investors about his company’s expertise in the foreign exchange markets and sent them forged ‘guarantees’ from New York banks to lure them into investing with him. Through his fraud scheme, Ewiess allegedly raised more than $5.8 million from victims around the globe, spending much of that money on his own gambling and personal expenses.”
AtoZForex reminds all investors always to be cautious when being promised large high-yield returns and check the presence of brokers’ license.
See also: Daily Forex News and trade opportunities
Think we missed something? Let us know in the comments section below.