WikiFX report: SAMTRADE FX RECOVERY SCAM SURFACES, ADMINISTRATORS WARN

The interim judicial managers from Messrs Rajah & Tann Singapore LLP said investors should not be lulled into false communications ‎trying to usurp its identity to defraud them in a recovery scam, in which individuals are asked to pay a fee upfront before they receive any proceeds.

“The appropriate authorities have been contacted and further action is being taken in respect of any parties identified as sending fraudulent communications to clients of the Company,” they added.

The uptick in scammers activities comes shortly after Samtrade FX announced its court application for judicial management. The brokerage firm also published a FAQ on its website in order to provide clarity to concerned customers in regard to deposits, withdrawals, and overseas investors.

A common type of fraud

This type of activity is typical of the fraud mechanism known as a ‘recovery room.’ Although the regulators could help people who have lost money, they dont charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.

While there are many variations of these tactics, the refunding scams are simply defrauding the victims one more time.

They use a variety of lies to add credibility to their pitch, and once the victim shows interest, a series of official-looking documents are sent to assure the investor that money is waiting in an account and can be recovered for a fee.

Samtrade FX is being jointly investigated by the Commercial Affairs Department (CAD) of the Singapore Police Force and the Monetary Authority of Singapore (MAS) for possible offences under Section 82 of the Securities and Futures Act 2001.

CAD and MAS said the joint investigation, launched on December 28, stems from Samtrade FX carrying on business in regulated activities without a capital markets services licence.

Specifically, the probe covers the trading services offered by Samtrade FX, which is run by Samtrade FX Limited, a company registered in St Vincent and the Grenadines. It also extends into its related Singapore entities, namely Samtrade FX LLP and Samtrade FX (SG) Pte Ltd.

The agency also said that three men, aged between 31 and 36, have been arrested in connection with the joint investigation.

In July 2021, MAS added Samtrade FX to it caution list and issued a direction to prohibit the company from onboarding new investors. Of the group companies, no entity is regulated in Singapore as a capital markets services licensee.