Why is this scam
CWM FX is operated by Leverate Financial Services Limited. Leverate Financial Services is a Cypriot Investment Firm regulated by the Cyprus Securities and Exchange Commission (CySEC) (License No. 160/11), authorising the company to provide Prime Brokerage Services and Straight-Through Processing to all European Union member states and other third countries.
According to the research and investigation firm OffshoreAlert, has CWMFX’s parent holdings been involved with the Colossal $16 billion offshore Ponzi scheme of Belvedere Management Limited. Belvedere Management Limited is the main suspect, whilst allegedly CWM Group, the parent group of CWM FX, is being involved with the massive plot. Assessing the Belvedere Management Limited in more detail, it is of interest to notify that this particular Mauritius based financial service provider is licensed through the according regulator FSC, also known as the Mauritius Financial Services Commission. Belvedere Management Ltd was on the verge of bankruptcy, as there have been signs of the firm not being able to refund its investors claims. These range from 125 hedge funds, assets under administration, securities broking, life insurances, investment management and many more. Interestingly, the total adds up to a staggering $16 million in terms of investor claims.
The signs of confirmation
About $130 million Cayman Ponzi scheme was under Brighton SPC umbrella fund. City of London police was investigating £100 m-plus Ponzi scheme by ‘CWM’
Both schemes as a part of rampant fraud by Belvedere Management Group.
Belvedere which is headed by David Cosgrove, Cobus Kellermann and Kenneth Maillard, operates in many countries, particularly Mauritius, Guernsey, Cayman & South Africa.
In April 2016, under a very rare set of circumstances, the City of London Police raided the offices of retail FX brokerage CWM FX at its corporate head office in the prestigious Heron Tower, resulting in the arrest of 14 employees including CEO Anthony Constantinou on suspicion of fraud and money laundering. Company created a series of litigation and police censuring which ranged from the method by which he treated operating capital and client funds, to the method by which he treated his staff. Due to the elaborate nature of this case, multiple other fraudulent schemes has been exposed, which were linked with Belvedere’s operations. Such is the case of a Cayman islands Ponzi scheme, worth over $130 million. With this particular scheme CWM World was involved and received multiple funds under various subsidiaries, one of which is CWM Securities. Alongside, OffshoreAlert’s report also covers the ongoing investigation of CWM World for an alleged $100 million-plus Ponzi plot.
Let’s see the other signs.
Not only did Belvedere deceived investors by publishing false net asset values and other documentations, the firm also enabled insiders to conduct illegal activities, whilst concealing them. The list of malpractice is endless.
Few years after, CWM FX is back in the legal spotlight, this time being the center of a suspected Ponzi scheme which the company may well had been operating. The most interesting case came this year in March, £50 million of soldiers’ savings lost by traders. The soldiers had allegedly ploughed their savings and pension pots into a fund run by London firm CWM FX, which promised a return of 5% a month. The company, which was dropped by Chelsea Football Club as a sponsor following the police raid, had quit trading. The soldiers were traditionally a regiment of the British East India Company Army prior to Indian independence in 1947. About 30 investors have filed a class action against a Cayman Islands bank which held funds from the scheme.
CWM FX is still working but who can trust them?
Recommendation – Not trusty at all. Take a careful consideration.