LeapRate Forex Fraud Watch – CFTC Charges Melody Phan for operating a $3.7 million forex scheme

The defendant operated through My Forex Planet Inc, Wal Capital S.A. and Top Global Capital Inc

A civil enforcement action has been filed by the US Commodity Futures Trading Commission (CFTC) against Melody Nganthuy Phan and companies associated with her – My Forex Planet Inc, Wal Capital S.A. and Top Global Capital for conducting a forex scheme. Additionally the defendant is charged by the regulator for conducting fraud as an unregistered commodity pool operator.

During the scheme’s lifetime the defendant has solicited almost $3.8 million from over 174 customers between January 2009 and February 2011. Throughout the period Mrs Phan and her companies My Forex Planet Inc (MFP), Wal Capital S.A. and Top Global Capital Inc (TGC) have solicited investors to enlist and participate in forex training classes and to open trading accounts with Wal Capital and pool funds for forex trading at TGC.

The forex training classes were provided by MFP and in those the defedents have made a number of misleading and false statements – Phan was presented as a highly successful forex trader who managed to gain millions from trading on the FX market and her system used to train the “students” was advertised as safe and virtually guaranteeing a return over time.

In reality Phan has lost at least $1.4 million during the course of time while trading on multiple accounts in her name, while the majority of funds deposited by customers with Wal Capital and TGC have been misappropriated and used to repay some customers their previously deposited capital. In addition the money that was obtained from the victims’ deposits were used to pay for business expenses and radio ads.

The CFTC complaint is looking for a civil monetary penalty, restitution and trading and registration bans in addition to the customary permanent injunction that prohibits Melody Nganthuy Phan from further violating the federal commodities law.

For the full press release visit CFTC’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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