The Massachusetts securities division filed two Administrative Complaints against unregistered broker-dealers that allegedly perpetrated foreign-exchange investment scams, according to Liz Moyer’s recent Wall Street Journal article, “Massachusetts Charges Two Firms in Forex Schemes.”
The cases are: (1) In the Matter of Eagle Trades, Ltd., Eagle Trades Ltd., LLC, and Terrance William Osberger, Docket E-2010-0005, and (2) In the Matter of Osiris FX, Evan Andersen, Glenn Anthony Manterfield, Alberto Sciola Jr., and FX Capital Services, Docket E-2010-0077.
With regard to the first matter, the complaint alleges that, beginning in 2009, Osberger solicited about $1.7 million of investments in hard assets and metals offered by Eagle Trades; however, Eagle’s website purported to offer primarily foreign exchange (FOREX) investment programs. Invested amounts were allegedly intermingled with Eagle’s own account and subject to a high volume of transactions making it difficult to track. Investors received a “Confidential Funds Placement Agreement” which promised returns ranging between 299% and 318% in a 90-day period, and stated that Eagle Trades Ltd., an offshore entity, would “act as intermediary and facilitate the transfer of Funds from Client to a” third party. Shortly thereafter, one or more of the investors received communications from Eagle saying that Eagle “had been the victim ‘ of a massive, seven-figure fraud” that resulted in Eagle’s “inability to meet our financial obligations to our members.”
With regard to the second matter against Osiris FX, a British Virgin Islands foreign-exchange trading company, and several individuals, the complaint similarly alleges investors put money into it only to be told months later the firm was having financial problems and could not liquidate the account.
Osiris principals Glenn Anthony Manterfield and Evan Anderson had been previously charged with fraud by the Securities and Exchange Commission in connection with a $34 million hedge fund called Lydia Capital Alternative Investment Fund, and Manterfield also has a criminal history, according to the article.
“In these uncertain economic times, it is tempting to range far and wide in search of better returns,” Massachusetts Securities Commissioner William Galvin was quoted as saying, adding: “But the searchers can fall prey to schemes that flourish in just such times.”
Page Perry has over 125 years collective experience representing institutional and individual investors in securities-related litigation and arbitration all over the country. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions.