Is CashFX a real trading outfit or just a Panama pyramid? - This is Money
Tony Hetherington is Financial Mail on Sunday's ace investigator, fighting readers corners, revealing the truth that lies behind closed doors and winning victories for those who have been left out-of-pocket. Find out how to contact him below.
A.J. writes: I am concerned about a scheme currently being promoted in the UK and around the world, called CashFX.
It is based in Panama and tries to give legitimacy by saying funds are invested through a licensed foreign exchange broker called EverFX, but the main way people are encouraged to make money is by introducing others.
Claim: Promoter Richard Maude, who was rewarded with this Porsche 911, says the licensed firm EverFX is a 'partner'
Tony Hetherington replies: CashFX is barely a year old but it has learned to be cautious in what it puts in writing. It attracted investors by saying they will share in bonuses based on pooled trading in foreign exchange markets, but it tends to leave specific claims to those who do its recruiting.
Here is what one of its British promoters says: 'CashFX has always paid a daily return of between 2 per cent and 3 per cent, which is capped at 15 per cent passive income each week; this is from trading which is done on your behalf – you can literally set it up and forget it.'
If this were true, you might expect CashFX to be shouting from the rooftops, but no such figures appear on its website. Nonetheless, until recently it claimed to be trading through EverFX, a licensed broking firm based in Cyprus. CashFX described EverFX as 'our main partner broker', claiming to have 'a productive business relationship' and a 'strategic alliance'.
Really? EverFX told me: 'We would like to highlight that we have never entered into any official legal agreement with CashFX, nor did we have any financial transactions exchanged between us.' There were talks between the two companies that dragged on, with CashFX claiming they were working together, but according to EverFX this is 'something that never happened so far'.
So, there is no evidence that CashFX has actually traded with its investors' money. Its website offers a range of pretty expensive manuals about forex trading, but investors' returns seem to come from recruiting even more investors.
Despite this, Richard Maude, one of its most active recruiters in Britain, holds the title of 'President' in CashFX, and in a YouTube presentation he describes EverFX as CashFX's 'partner broker'. He claims: 'The returns that are made from the trading, that is what fuels this business. If you are someone that just wants to be a passive member and earn from the trading, that's where the money is coming from. It's coming from the trading results the company is getting.'
Maude proudly announced recently that CashFX had rewarded him with a Porsche. But a few years ago he was just as enthusiastic in promoting a scam called Banners Broker, which was supposed to profit from internet advertising but which was just a pyramid fraud scheme. Its organisers in Canada were convicted and jailed.
I invited comments from CashFX and its promoter Richard Maude, particularly on what EverFX told me. Neither of them replied, though The Mail on Sunday was approached by London lawyers Schillings, acting for CashFX and keen to know about today's report. If CashFX really were operating a forex investment scheme in Britain, it would need to be authorised by the Financial Conduct Authority – and it is not. The FCA has posted a website warning, telling investors to be 'especially wary of dealing with this unauthorised firm'.
Forex trading without authorisation is a criminal offence, so I asked the City watchdog whether it had taken any action against CashFX or its promoters. It refused to say, which I take to mean 'No, we haven't.'
One day the FCA will learn that its investor protection duties should involve something more than a message on the internet, but I am not holding my breath.
I'm sorry but you have to pay for the gas you used
Ms M.S. writes: I write in desperation about ScottishPower and a situation which has been going on since 2014.
ScottishPower has put me in debt by failing to collect direct debit payments and is now using debt collectors.
Desperate: ScottishPower has been issuing bills but froze further action because of complaints
Tony Hetherington replies: ScottishPower admitted immediately that it slipped up several years ago by treating your separate gas and electricity accounts as if you were a 'duel fuel' customer. As a result, it collected charges for prepaid electricity, but nothing for your gas. This was corrected as long ago as 2016.
ScottishPower has been issuing bills since then but froze further action because you were pressing the company with complaints. By last January, you owed £6,199.
Staff at the utility company told me: 'We recently rebilled Ms S on a cheaper tariff, which reduced her outstanding balance by almost £1,000, and we have encouraged her to apply to our Hardship Fund. If eligible, this could help significantly reduce the balance even further.'
In short, ScottishPower spotted you could have been on a cheaper tariff, voluntarily applied this, backdated it, and cut your debt by over £900. It has also offered £75 as a goodwill payment for getting things wrong in the first place.
But the blunt fact is that you did use the gas, and although I believe you would like me to demand that ScottishPower write off the debt completely, I do not think that would be justified.
Your own bank statements would have shown you were paying nothing for your gas, and your bills were put right four years ago. The company says it is more than willing to accept payment over a long period. You should agree.
Why is Virgin taking so long to refund us?
Ms C.S. writes: On April 14, we were repatriated from South Africa due to the pandemic. Our scheduled flights by Virgin Atlantic were cancelled.
We purchased new tickets and were promised by Virgin that we could claim back the cost.
We submitted a claim for £1,712 on April 16 and it was acknowledged. We were told we had to wait 120 days, but during this time received no refund or answers.
Tony Hetherington replies: After I contacted Virgin for a comment, you received a text message asking you to call the company. You rang the number provided, but all you got was a recorded message saying that due to Covid, there was nobody available to take your call.
I received a statement from the company, saying you submitted your claim in September, and 'the refund will be processed within 60 days'. When I challenged this, Virgin agreed that your claim really was made last April, meaning you had been waiting patiently for well over the promised 120 days. Your full refund has now been paid back to your credit card.
If you believe you are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 2 Derry Street, London W8 5TS or email tony.hetherington@mailonsunday.co.uk. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.
Comments
Post a Comment