The British police raided the homes of Peter Benstead and Edward James, in the wake of dawn. These two directors of Crown Currency are suspected of deceiving thousands of forex traders, leaving them penniless.
Here’s a report from the Telegraph:
Detective Inspector Bean from Devon and Cornwall Police Serious and Organised Crime Branch said: “It is expected that this will be a protracted inquiry that may take many months. It is anticipated that there are approximately 13,000 victims.”
They put the FSA logo on their website and people thought they were safe.
The lesson we can learn is that we have to check out the regulator’s site and see if the forex broker is indeed listed there.
Trusting the broker’s site is far from sufficient. It’s always good to hear that the authorities are chasing forex scammers. This is an important role that regulatory bodies such as the FSA in Britain or the CFTC in the US have. The lucrative forex business attracts both good guys and bad guys.
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