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Screenshot of a breaking news alert e-mail from Q2 2017
The company appears to be registered in Ukraine which only adds on top of CRFIN’s worries
According to a press release issued by Russian self-regulatory organization CRFIN, the company FX Garant (www.fx-garant.org) appears to be very likely to operate a Ponzi scheme. The regulator has issued a warning that the company is guaranteeing a staggering amount of income from forex trading at 20% per month. We can only add to worries about this company since it appears to be based in Ukraine, with headquarters in the city of Donetsk.
We have tried contacting by phone all four offices that are listed on the company’s website during working hours. Unfortunately we didn’t manage to get in touch with anybody in Donetsk, Kharkov and Odessa, nor the German office which is allegedly in Fulda. All links from the “About Us” section on the website lead to the account opening solicitation page.
CRFIN considers that there are no objective guarantees to believe that the firm is compensating its customers with the stated 20% income and FX Garant’s business model is not transparent enough to consider the possibility that it’s operating legitimately. Additionally there is no information about the company’s licenses, which according to existing regulations need to be present in order to offer funds management services.
The Russian self-regulatory body does not have any enforcing power, especially in this particular case when the potential business conduct violator is from another country. CRFIN concludes the press release with a warning for existing and potential clients of the firm to avoid depositing any funds with it as there is no guarantee that they will be even partially reimbursed.
For the full list of suspected Ponzi scheme companies (In Russian) click here.
For the full press release in Russian visit CRFIN’s website.