Alpari (UK) Scores; FX volume on the rise in Korea; Another scammer caught.
The P&L editor’s favourite football team will now be sponsored by a global currency trading firm. Alpari (UK) has signed a three-year sponsorship contract with English Championship league football team West Ham United. As part of the partnership agreement, the West Stand at the Boleyn Ground, better known as Upton Park, will be renamed the Alpari Stand.
Korean banks’ daily foreign exchange volume rose to the highest level in three years in the second quarter, the central bank said last week. Daily FX trading volume among banks averaged $21.48 billion in the April-June period, up 4.3% from the preceding quarter, according to the Bank of Korea. It marked the largest daily turnover since $21.81 billion tallied in the second quarter of 2008.
The Securities and Exchange Commission has filed fraud charges against the CEO of a purported foreign currency trading firm, alleging he scammed hundreds of investors with false promises of high, fixed-rate returns while secretly using their money to fund his start-up alternative newspaper.
First Capital Savings & Loan Ltd chief executive Jeffery Lowrance, who had fled to Peru and was arrested there earlier this year, was arraigned on criminal fraud charges in a 2010 indictment filed by the United States Attorney’s Office for the Northern District of Illinois. The SEC alleges that Lowrance raised approximately $21 million from investors in at least 26 states, including California, Oregon, Illinois and Utah by promising huge profits from a specialised foreign currency trading program.
In reality, First Capital conducted little foreign currency trading, lost money on the little trading that it conducted, and never engaged in any profitable business operations. Lowrance targeted investors by purporting to share their Christian values and limited-government political views. His scheme began to unravel in June 2008 and he lost all of the investors’ money by September 2008, the SEC says.
The SEC’s lawsuit seeks court orders prohibiting the defendants from engaging in securities fraud and requiring them to disgorge their ill-gotten gains and pay financial penalties.