The Securities and Exchange Commission Wednesday obtained an emergency court order to freeze the assets of Texas A&M finance professor Robert D. Watson. The accounts of Houston lawyer and CPA Daniel J. Petroski was also frozen, along with two firms. Watson and Petroski are charged with forging bank records to trick investors into believing they were earning excessively high returns in foreign exchange trading.

The Players & The Crime

Watson and Petroski are alleged to have raised over $19 million from investors using the following entities:

• Alpha One: This foreign-currency trading software program was purportedly owned by their firm.
• PrivateFX Global One Ltd.: Owned the Alpha One software.
• 36 Holdings Ltd.: This so-called “deal clearing company” was to service Private FX Global One Ltd. This company was owned and controlled by Watson.

The SEC alleges that Watson and Petroski told investors they had millions of dollars in bank accounts in the U.S. and Switzerland and that their foreign exchange trading business had achieved an annual return of more than 23 percent since its inception and has never had a losing month. The defendants’ historical performance claims are not supported by valid financial records.

“As we allege in our complaint, these defendants used modern technology to create professional-looking, bogus documents that supported their extraordinary claims,” said Rose Romero, Director of the SEC’s Fort Worth Regional Office.  

Phony Documents, Again

As we’ve seen time and time again, when asked for proof of returns, Watson and Petroski produced phony records purporting to show that 36 Holdings held an account at Deutsche Bank. The SEC also charges that the defendants provided the Commission staff with phony bank statements from a Swiss bank and falsely claimed that 36 Holdings had almost $70 million on deposit there, including $11 million of Global One funds.

I always wonder why smart people like this choose to go to such lengths to commit fraud. Wouldn’t it be easier to engage in a legal entrepreneurial venture?

Image Credit: d70focus, Flickr

It seems e-gold might be losing some market share these days and only time will tell if that trend can be reversed. However, the online payment system Webmoney Transfer, seems to be gaining new customers and merchants. So who accepts Webmoney?

Here is a few Forex trading webs that not only accept it Webmoney but often, customers can also make account withdraws directly to a WM-purse.

Occasionally, I read the EarnForex web site. If you are looking to learn more about trading, this is a good place to get up to speed on one BIG exciting market. Here’s what they had to say about Webmoney and Forex:

Forex traders that prefer on-line payment systems, but don’t want to deal with e-gold or other browser-security system might like WebMoney e-currency system for its hi-end security and good level of service. Here is the list of all brokers that accept WebMoney:

• LiteForex Trading technology for beginner traders. Also lets you start trading with as little as one dollar!
• Marketiva A financial services corporation specialized in providing traders with high quality online trading services.
• FXEgypt Professional services that have been specifically designed to meet your trading needs. Learning courses and demo accounts.
• FXcast The range and capabilities of FXcast software fits everyone’s needs and even auto-trade capabilities
• Alpari Professional Internet trading services for both individuals and corporate clients.
• Ava FX Provides a new breed of service to the retail online trader.
• Real Trade Offers clients free “RealTrader” software.
• IFC MarketsFutures, securities, and foreign exchange as a FOREX broker and primary market.

Source: WebMoney Forex Brokers

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