Forex Firm, Targeting Small Investors, Ordered to Halt Offerings

Oct 10
2018

Texas Securities Commissioner Travis J. Iles on Oct. 10 took emergency action against a financial firm that is promising investors of limited financial means that it can produce huge returns from investments in foreign currency trading, real estate, and oil and gas.

The Securities Commissioner entered an Emergency Cease and Desist Order against GoForex Group, a South Carolina firm that claims it is a “legally registered” private investment firm.

GoForex is targeting Texas residents with advertisements claiming investors can earn a return of 900% on their money in 21 days. GoForex is telling investors it has a team of hundreds of foreign currency traders and other professionals with expertise in real estate and oil and gas investing.

According to the order, GoForex says its “minimum investment plan” – available for as little as $500 – was created for “people with small financial strength, students and first time investors.” GoForex claims this plan has “helped thousands across the globe [to] overcome frequent financial breaks.”

GoForex lists an address in Detroit, but it is not incorporated in Michigan, according to the order. The company is located in Orangeburg, S.C. It is not registered to sell investments in Texas, nor are the two individuals associated with GoForex named in the order.

The company has published a business registration certificate on its website, but it is a fraudulent document that was digitally modified from a certificate issued by the International Business Companies Registry of Belize.

GoForex is also publishing false testimonials on its website. The company claims one photograph is of a client of the firm, but the person depicted is an NPR radio host in Connecticut who has never been a client of the firm or associated with it.

GoForex is failing to disclose to investors the background and expertise of the financial professionals who will trade foreign currencies and invest in real estate and oil and gas. It is also not disclosing the risks involved in the types of investments it is offering to Texans.