<p>Two American men, who orchestrated a $30 million fraudulent foreign exchange (forex) trading scheme, have been sentenced to prison for up to five years, the Department of Justice announced.</p><p>FX Frauds Get Five Years in Prison</p><p>Massachusetts-based Patrick Gallagher, 45, has been sent to jail for five years, while 50-year-old Michael Dion from Florida was sentenced to four years and seven months in prison. Both <a href=”https://www.financemagnates.com/forex/us-men-pled-guilty-to-30-million-forex-scam/” target=”_blank” rel=”follow”>pled guilty</a> to conspiracy charges to commit securities fraud last September, which contains a maximum prison time of five years.</p><p>According to the court documents, Gallagher and Dion operated the <a href=”https://www.financemagnates.com/terms/f/forex-trading/” class=”terms__main-term” id=”258a569f-bf49-4a61-a1b4-bc352d76141f” target=”_blank”>forex trading</a> scheme through their company, Global Forex Management. They promised large returns based on fabricated previous returns and told investors that their funds would be traded using an <a href=”https://www.financemagnates.com/terms/o/online-trading/” class=”terms__secondary-term” id=”93afd583-ea4d-45cf-a1e0-8d951e5d8f48″ target=”_blank”>online trading</a> platform provided by a co-conspirator’s company, IB Capital.</p><p>In reality, Gallagher and Dion stole the investors’ funds by working with their co-conspirators in The Netherlands. They effectively stole the $30 million from investors by intentionally creating losing trades in May 2012. They fabricated the massive loss and then routed the money through shell companies set up across the world.</p><p>Rampant Frauds across the Globe</p><p>The US authorities have been actively busting crypto and other financial fraud that went rampant over the years. Recently, the <a href=”https://www.financemagnates.com/cryptocurrency/eminifx-leader-pleads-guilty-to-248-million-fx-and-crypto-fraud/” target=”_blank” rel=”follow”>mastermind behind the EminiFX</a> platform that defrauded thousands of investors for more than $248 million pled guilty to charges. Last December, the US securities regulator <a href=”https://www.financemagnates.com/fintech/us-sec-charges-8-twitter-influencers-with-100m-pump-and-dump-fraud/” target=”_blank” rel=”follow”>charged eight Twitter influencers</a> for using social media platforms Twitter and Discord to manipulate exchange-traded stocks.</p><p>Meanwhile, the US is one of many countries where fraudsters are getting caught. In Australia, two Directors of a <a href=”https://www.financemagnates.com/forex/fx-ponzi-scheme-defrauded-180m-director-faces-10-years-in-jail/” target=”_blank” rel=”follow”>$180 million forex Ponzi scheme</a> were recently sent to jail for ten years each. Additionally, they were heavily fined for running the scheme for seven years. Most of these schemes have one thing in common: they manipulate investors’ greed by promising unrealistic gains.</p><p>Most recently, the French financial market regulator <a href=”https://www.financemagnates.com/forex/french-regulator-warns-against-fx-trading-robots/” target=”_blank” rel=”follow”>warned against fraudulent trading robots</a> targeting residents of French territories, offering annual returns of up to 400 percent.</p>
This article was written by Arnab Shome at www.financemagnates.com.
