CWM FX - I Told You So !

deltatrader12

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OK. I posted a warning thread up some weeks back about CWM FX being a boiler room and outlined all of the unethical practices there. I worked there as an employee literally for a couple of days and resigned in disgust after I witnessed the misrepresentation, misleading statements, lack of risk warnings and high pressure sales tactics.

An additional poster on the thread I started mentioned how CWM FX was soliciting for asset management business (outside of their licensing) with a 'guaranteed' investment offering guaranteed monthly returns 'off the record' and suggested that it was a ponzi scheme. Anyway, my post/ the thread was deleted from this forum.

I put the post up as a warning/ to caution people as to the situation purely. I had no axe to grind and was not a disgruntled employee but thought it a good idea to look out for my 'fellow man'.

Anyway, what do I read in City AM? I read that they were raided by the police a few days ago and 13 arrests were made. http://www.cityam.com/211002/heron-tower-raid-colourful-world-chelsea-fc-s-forex-partner-cwm-fx

I think the forum moderators should grow some balls and not delete posts. Posts like mine are not meant to be malicious but are written purely to give people on this forum a 'heads up' that could potentially save people their life savings. Good to see that somebody else had the good sense and British balls to try to bring the light of clarity on the situation.
 
Nice one. I could list a mountain of introducers pushing this crap. About time they were brought to hand as well
 
Yeah it's a shame the mods took down your original post, it cold have saved a lot of people some money. I heard the mods/sharky go a letter from CWM's 'layers' and pissed their pants.
 
I understand there is now a large firm of solicitors about to commence legal action against introducers who have been promoting this to retail clients. They say it has been massively mid sold and will ultimately close down a lot of these. However, they say that as the directors did not do correct due diligence on the investment, they will pursue the directors personally through the courts. Interesting times coming up!
 
why was the post deleted? in the light of the article it would seem you did a good thing, but the moderators may have thought this was not the forum for such a heads up? ie they cannot substantiate its substance until the authorities have acted and produced proof, and to leave the post up would expose them to legal stuff? this in turn means honest whistleblowers need a safe environment to alert potential victims
 
I think the forum moderators should grow some balls and not delete posts. Posts like mine are not meant to be malicious but are written purely to give people on this forum a 'heads up' that could potentially save people their life savings. Good to see that somebody else had the good sense and British balls to try to bring the light of clarity on the situation.

It wasn't moderators who removed the posts but Admin after T2W was issued with a legal challenge so get your facts straight before blaming us for something we haven't done.
 
Craig Droiste, used to work over at anotther Binary Options Broker OneTwoTrade. Simlar sort of setup, not sure how they have got away with it for so long.
 
Site users can't just post unsubstantiated and potentially very damaging information about commercial bodies (or individuals). Of course, what the site could do is hold the post back until its content has been sent privately to the company, and then post their reply.
 
david and Goliath -the reality.

Site users can't just post unsubstantiated and potentially very damaging information about commercial bodies (or individuals). Of course, what the site could do is hold the post back until its content has been sent privately to the company, and then post their reply.

A bit like hotel comments on "Trip Adviser"- you do not know how many comments are genuine or how many are false (competitors dirty tricks etc).

The law of libel applies everywhere. That being so T2W has to be careful not to embroil itself in legal battles based on unsubstantiated claims by possibly disgruntled employees or other persons. So it follows that any post that is legally challenged has to be removed if proof is not available or the article is written in such a way that it is clear that the writers views are not those of T2W. Even then a legal minefield awaits such publishers, and the cost involved in meeting legal challenges is simply not economical. Perhaps the poster should approach national television or other publishing conglomerates who have the financial muscle to fight legal battles. Not a view promoting fair play I know, but then, we live in the real world where, sometimes, right is linked to economic might.
 
It wasn't moderators who removed the posts but Admin after T2W was issued with a legal challenge so get your facts straight before blaming us for something we haven't done.

Can you expand on structure of the actual ' legal challenge ' , or was it , more like hot air threats of legal action to get posts removed etc.

Was there any formal legal documents served to T2W for example, setting out the nature of any legal complaint ?

Just want the sight of the FACTS !

Cheers.
 
It'll be interesting to know who the introducers were. maybe its time to name and shame them...




I understand there is now a large firm of solicitors about to commence legal action against introducers who have been promoting this to retail clients. They say it has been massively mid sold and will ultimately close down a lot of these. However, they say that as the directors did not do correct due diligence on the investment, they will pursue the directors personally through the courts. Interesting times coming up!
 
I agree. why delete the post that was factually correct. there's no smoke without fire.

rumour has it that CWM FX have another 14 days where they have a deadline to pay back all the money raised for their proposed 'fabricated' investment of guaranteed returns


OK. I posted a warning thread up some weeks back about CWM FX being a boiler room and outlined all of the unethical practices there. I worked there as an employee literally for a couple of days and resigned in disgust after I witnessed the misrepresentation, misleading statements, lack of risk warnings and high pressure sales tactics.

An additional poster on the thread I started mentioned how CWM FX was soliciting for asset management business (outside of their licensing) with a 'guaranteed' investment offering guaranteed monthly returns 'off the record' and suggested that it was a ponzi scheme. Anyway, my post/ the thread was deleted from this forum.

I put the post up as a warning/ to caution people as to the situation purely. I had no axe to grind and was not a disgruntled employee but thought it a good idea to look out for my 'fellow man'.

Anyway, what do I read in City AM? I read that they were raided by the police a few days ago and 13 arrests were made. http://www.cityam.com/211002/heron-tower-raid-colourful-world-chelsea-fc-s-forex-partner-cwm-fx

I think the forum moderators should grow some balls and not delete posts. Posts like mine are not meant to be malicious but are written purely to give people on this forum a 'heads up' that could potentially save people their life savings. Good to see that somebody else had the good sense and British balls to try to bring the light of clarity on the situation.
 
Ihave just had an email from Lvererate, who are the platform behind CWMFX confirming that they have terminated the agreement with CWMFX... No more trading for them in 5 days...
 
Can you expand on structure of the actual ' legal challenge '

No I can't as it was an Admin decision which was for reasons as stated and which moderators are not involved in.
 
I can't seem to find anywhere to confirm all the money has to be paid back. If this is so, does this mean a clawback of commissions from introducers?
Also there seems to be no confirmation from leverage that they have disassociated themselves from CWM
 
Email address for Leverate to confirm [email protected] and also [email protected]. Send them an email..

The one I received from them was on the 11th March and Stated

Dear Sir/Madam

We have terminated the agreemenet with CWMFX. We cant not provide with an additional information regarding CWMFX.
 
I know a person with a fair amount in CWM's guaranteed returns account..talk about being panicked!
Is this a Ponzi scheme in your opinions?
Watfordwig
 
Yes it a ponzi scheme.

Ask yourself the question that I'm sure has been posed by many on here before.

If you had a sure fire guaranteed trading method of producing a return of 5% a month for investors and it allowed you to pay another 2-3% on top for introducers and agents plus make a profit yourself (so its going to be at least 10% a month) would you be running round getting a few million from greedy private clients?
No, you'd sell it to Barclays and take 50% of the profit they made from using it on their balance sheet, trading the odd couple of billion a day!

Perhaps we should have some sympathy with investors, perhaps not, maybe its easy for us slightly wiser heads to judge.

But COME ON, guaranteed no loss and 7-10% return a month...........really??? Wise up people, if there was this type of scheme out there we would all know about it and nobody would ever have to work or dream of a lottery win again.

Sometimes money managers go on a hot streak, sometimes a cheap asset (or index) when valued a year after being bought looks like a fantastic return and after a serious bear market we can see value for a year or two.
But trading, every day, and guaranteeing you'll not loose money?

Like I said above, if I'm that good why they hell am I dealing with you, you're a nickle and dime private client. Walk me into Goldmans or Citi and give me their balance sheet. I'll be making millions every single day with zero calls from Joe Public checking on their last few pennies.......
:devilish:
 
Yes it a ponzi scheme.

Ask yourself the question that I'm sure has been posed by many on here before.

If you had a sure fire guaranteed trading method of producing a return of 5% a month for investors and it allowed you to pay another 2-3% on top for introducers and agents plus make a profit yourself (so its going to be at least 10% a month) would you be running round getting a few million from greedy private clients?
No, you'd sell it to Barclays and take 50% of the profit they made from using it on their balance sheet, trading the odd couple of billion a day!

Perhaps we should have some sympathy with investors, perhaps not, maybe its easy for us slightly wiser heads to judge.

But COME ON, guaranteed no loss and 7-10% return a month...........really??? Wise up people, if there was this type of scheme out there we would all know about it and nobody would ever have to work or dream of a lottery win again.

Sometimes money managers go on a hot streak, sometimes a cheap asset (or index) when valued a year after being bought looks like a fantastic return and after a serious bear market we can see value for a year or two.
But trading, every day, and guaranteeing you'll not loose money?

Like I said above, if I'm that good why they hell am I dealing with you, you're a nickle and dime private client. Walk me into Goldmans or Citi and give me their balance sheet. I'll be making millions every single day with zero calls from Joe Public checking on their last few pennies.......
:devilish:


Thank you for the through reply. I really appreciate it.
 
Additional Information

Thank you for the through reply. I really appreciate it.

Hi Guys,

I just thought I would put up some additional information to give you all some clarity. Unfortunately, my original post was deleted so I cannot re-post it exactly as before but I will endeavor to outline some of the salient points.

I worked briefly for CWM FX in December and resigned in disgust after just a couple of days.

1) It was an absolute boiler room. Seriously,it was truly beyond bad and truly intense (much much worse than what many of you may have seen in any film and I have seen a couple boiler room operations in real life). They had a large room at the Heron Tower office set up as a sales floor with salesmen crammed in two to a desk. They were standing up virtually all day (only two 15 minute breaks and a 1 hour lunch break were allowed). Nobody could sit down for more than a few seconds or they were immediately shouted at by a supervisor to stand up. The whole floor was standing almost all day from morning to 7 pm aggressively selling on the phone with constant shouting/pressure to achieve sales targets from managers.

2) There was a really huge turnover and people were being fired constantly (in my brief time there a handful disappeared and I worked there for only a couple of days !). There were no work contracts at all and there was an atmosphere of fear (with no employment contracts they could dismiss anyone at the drop of a hat and they very often did). They literally had deodorants on the desks as the place got very hot and sweaty (bringing new meaning to the words 'boiler room'). There was also huge pressure to sell through introducing brokers and employees were pressured into selling to friends and family (I am sure many of the people who invested on the platform were probably introduced by people they trusted).

3) After a short induction everybody was given the title of 'senior account manager'. I found they were mostly former wine/carbon brokers and some were just teenagers. Many members of the management team had a background from unregulated binary options firms (One 2 Trade, I believe) and some had no financial background at all (the general manager was a yacht skipper previously to the best of my knowledge). None of them seemed to have any idea about financial regulations and most had a very limited knowledge of the financial markets. Didn't inspire confidence.

4) In and of itself none of this was against regulations (perhaps employment regulations) just very very aggressive, highly questionable and unethical. What was very wrong was the extremely misleading sales practices. FX is very risky and people were being promised a safe 'second income' and no risk warnings of any kind were given. In fact, just the opposite, it was being touted as a new asset class with boundless upside, huge profits and rewards (In my previous deleted post I put up this link as evidence http://uk.whocalledme.com/PhoneNumber/02036953844 ). This was totally against UK regulations regarding the promotion of financial services.

The company was spending massive amounts on fixed costs and marketing campaigns. I originally assumed that they were churning their clients to get maximum commissions out of them and not paying their staff after squeezing them dry and firing them. However, it still would not have been enough to pay for the Heron Tower office and all their marketing expenses and 'show'. There would never have been enough money to generate a profit from purely a forex platform for such an expensive operation and something was missing. Anyway, in my assessment, the figures still did not add up and something still seemed wrong.

Then I learned later what was really happening. Apparently, they were speaking to clients 'off the record' about a 'guaranteed investment' (there were posts on other sites about this I read and I had learned something about it while I was there). They were telling prospects that they had infallible traders at the office and a wealthy billionaire CEO who would underwrite losses (but he wasn't on the Times Rich List and I had never heard of him before). They also had a rent-free period on their lease. The assumption was that they were taking in this 'off the record' money without properly accounting for it. Of course, generating guaranteed stable risk-free returns on the highly volatile FX market is practically impossible. The assumption was that there would come a point where the 'investment' would not pay off and they would either pin it on somebody internally or say the money never existed at all or that it was sent offshore. Then they would bail out of the snazzy office and shut up shop. A classic Ponzi scheme (this is what another poster suggested on my thread and it seemed to fit the facts). A hallmark of Ponzi schemes, of course, is the 'guaranteed' or 'stable' and infallible investment.

Now irrespective of whether it was a Ponzi scheme or not. They did not have the license to market asset management services in the UK. They certainly did not have all the regulatory systems and controls in place for AML (taking money from clients 'off the record' as they were) and ...obviously...they were not giving people clear brochures or fact sheets as per UK regulations and their sales tactics were misleading. So it was still illegal.

It is impossible to say if they were running a Ponzi scheme without a full investigation (although, in view of their huge fixed costs and marketing and the 'off the record' way they took in the money, it would be the only plausible explanation that would make financial sense) but what they did was definitely against UK regulations nonetheless. Other explanations are possible (less than intelligent cowboy managers, lack of internal controls, a company over-extending itself etc).

Hence for this reason I gave 'my fellow man' a 'heads up'. Both potential employees (and existing ones for that matter) as well as future investors. Many of the employees there were naive or graduates working in their first job (many were desperate for 'experience' and there is no shortage of such in London for employers to abuse) so not all were to blame. I advised CAUTION and certainly made it clear I had no axe to grind and that I was not a disgruntled employee. I left it up to everyone to make up their own minds and do extra due diligence.

Incidentally, I don't think that Leverate was part of this. They are essentially a white label platform and probably had no idea of what was going on, although you could argue they should have been monitoring their partner.

Anyway, if anyone has made this kind of investment I recommend asking CWM FX for a refund of their money (something every regulated firm should be able to do) or at least evidence of their account balance. If they do not refund your money back perhaps speak to the Financial Ombudsman Scheme and carry on through the usual channels with the regulator. I hope in my heart that you have enough evidence/paperwork in terms of transferring money etc. that you can prove you paid in the money and that it wasn't handed over in cash or something.

Perhaps people who have paid into this scheme can post about the details of the payments ...was it sent offshore? Did you get paperwork? Do you have online access to your account balance ? Did you get a monthly statement of profits ? Did you get brochures ? etc
 
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