DECEPTION DOWN UNDER
Lance Jack Ryan and Jimmie Kevin McNicholl were the duo who designed the next deceitful deed. Over 1000 investors were targeted by this specific Ponzi scheme, which are all-too-common on the forex market.
Together they managed to secure over $8 million NZD in just a couple of short years through their fake trading platform, BlackfortFX. The business was registered by way of forgery and deception and the investments never even made it close to being traded on the forex market.
Whilst Jimmie received a lighter sentence of $50,000 NZD in compensation charges and one year’s home arrest, Lance Jack Ryan was struck with seven and a half years in prison.
“IF YOU THINK COMPLIANCE IS EXPENSIVE, TRY NON-COMPLIANCE”
Paul McNutty, Former U.S. Deputy Attorney General
Founded in 2011 in New Zealand by two Dutchmen, Michel Geurkink and Emad Echadi, IB Capital FX managed to solicit over 1,850 customers and $50 million through their forex scam in less than a single year.
Until new legislation in 2015, it was effortless for foreign nationals to set up as a forex broker in New Zealand. Geurkink and Echadi promised worldwide customers that their money could be used to trade exchange contracts over the counter, while lacking registration with the US Commodities and Futures Trading Commission (CFTC).
When the CFTC cottoned on to this illicit activity, they sentenced the pair to pay $35 million in restitution and a joint $420,000 civil fine.