When a financial service company office in Heron Tower, London, raided by police on March 3, suspicion was directed to CWM FX, a new forex broker under CWM World group that has been spreading sponsorships like confetti and even has became the sponsor of Chelsea FC.

When a financial service company office in Heron Tower, London, raided by police on March 3, suspicion was directed to CWM FX, a new forex broker under CWM World group that has been spreading sponsorships like confetti and even has became the sponsor of Chelsea FC. At first, the company denied the suspicion and said that they operate as usual. However, the suspicion was confirmed yesterday (26/3) by The City of London police who said that they have arrested ten men and three women on suspicion of fraud by false representation, conspiracy to defraud, and money laundering.

CWM

CWM FX name has been rising this year in the UK, mainly due to their generous sponsorship deals and over-the-top returns offered to investors. According to City AM, in January they became online forex trading partner of Chelsea FC, held CWM FX London Boat Show, and even sponsored LCR Honda MotoGP, rugby team Wigan Warriors, and SV Racing that will race at 2015 Renault Clio Cup. Many are tempted by their invitation-only investment with guaranteed returns of 5% per month. The high-class image built through spreading sponsorship deals around did not hurt either as their key people mingled with the wealthy and famous, including Princess Anne who attended the London boat show. However, they are actually an unregistered broker. According to ForexMagnates, both CWM FX and its parent group, CWM World, were both registered at UK Financial Conduct Authority (FCA) for a short time, but was removed later.

However, the bubble burst as soon as the City of London police took action and raided their office. Even before the police confirmed which company is the Heron Tower raid aimed at, their technology and liquidity provider, Leverate, has cut ties, thus pushed CWM FX to suspend all of their services and took down their website. Not long afterward, ForexMagnates again revealed that an investigative research publication has exposed CWM World as part of a massive 16 billion USD Ponzi scheme, orchestrated by the Mauritius-regulated Belvedere Management Limited. By the time London police confirmed that it is indeed CWM FX that is at the center of investigation, even Chelsea FC has removed their name from sponsor list. CWM FX maintained that the case was triggered by vindictive ex-employees; but the police has asked anyone who have invested in the company, be it in the UK or abroad, to come forward and contact the authorities.

Taking the CWM FX case into consideration, for the umpteenth time, we are reminded of the old adage, if it is too good to be true, then maybe it is. A return of 5% per month is huge by any accounts, more so when the company offering it claimed the investment has only zero to low risk and unlicensed to boot. These informations could be obtained simply by investigating the company through ordinary means like browsing the net or bring the topic up in forum discussions. It also needs to be noted that even big names could be swindled, and so, it is not good to invest your funds into some dubious companies just because so and so recommended them.

 

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