Another StockTwits Fraud

On May 30, TradingSchools.Org published a story titled: StockTwits: The Facebook Of Fraud.

In that story, we detailed how Stock Twits is a social media and investment platform that is essentially enabling and providing a venue for fraudulent trading products and services. Nearly every single month, a horror story appears in our inbox, related to StockTwits.

The stories are remarkably similar. That an unwitting investor found a money manager or supposed hedge fund product that promised huge profits with little risk.

Within a few months, the money manager disappears with the investment. The victim is left with only faked or fraudulently produced brokerage statements.

During just the month of May 2017, the FBI made three separate arrests, of three different “financial advisors” that ripped off investors for a combined $12,000,000. All three of the frauds originated from, and were frequent advertisers on the StockTwits platform.

It has been only 22 days since our last article. And yet another fraudulent investment advisor has been busted by the CFTC and the FBI.

Global FX Club

According to the CFTC, Global FX Club ripped off investors for about $400,000.

It appears that the scheme started with the following website. Which published a series of fraudulently produced trading results, that can be viewed here.

Simultaneously, several user profiles were created on StockTwits. These user profiles were used to stream out a near constant barrage of supposedly winning Forex trades. These can be viewed here:

The fraud was further enhanced and enabled directly by StockTwits as they sold advertisements that guaranteed a minimum of Stock Twits users would unwittingly be directed to Global FX Club.

Once the victim arrived at the Global FX Club website, and with the implied credibility of StockTwits, the client was then offered the opportunity to invest.

The owner of the company, Michael Wright would proclaim his Forex trading greatness, and offer his trading services as a managed service. Michael Wright would tempt the victim with a performance-based scheme. For every dollar earned, the supposed money manager would receive 15% of the monthly profits, only after a return of 100% had been achieved.

Fraudulent Account Statements

As the months progressed, Michael Wright would mail account statements to each victim. Every single month, he proclaimed amazing profits.

Sometime in the fall of 2016, Michael Wright simply disappeared. Customers began complaining to the CFTC and forwarded the supposedly authentic account statements to the CFTC and the FBI.

The CFTC examined the account statements and discovered that all of the statements were fraudulently produced.

Investigators were able to track down several Forex accounts controlled by Michael Wright. They discovered that during the time of the fraud, a total of $115,800 was deposited in several Forex trading accounts. Of this amount, Michael Wright lost approximately $114,300.

Missing Money

Investigators for the CFTC and the FBI began to dig even deeper. They discovered that Mr. Wright had been using the remainder of investor funds to support his “Forex Trading Lifestyle.”

Money was spent on cars, food, jewelry, topless bars, entertainment, and expensive clothing.

In total, investors believed that their investments had grown to about $5,000,000 in profits. In reality, investors were left with nothing. And supported the lifestyle of a con artist.

Thanks for reading.

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6 Comments on "Another StockTwits Fraud"

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dtchurn
Guest
Actually I did notice one more alarming thing about this ponzi scammer. In DoJ report it mentioend Wright is 30 y.o. so according to stocktwits he started doing his sham seven years ago in his early 20’s probably just as a new college grad which smells of another bad apple example of a Sykes wannabe. Like we had Alex Sobiel/Zeilaff and the “WillStockspicks” young shamsters. I recall this young guy probably the same age as Wright on bmt during the era of VVanceVirg and the cartoon pandabera which I’m sure you remmember RobB, haha. Well, this kid, “indextrader7” came on… Read more »
Rob B
Guest
Many of these scammers start with fake BMT journals. Take Vince for example. He first had a journal where he did nothing but lose money, but then wam bam he created a new superstar journal model after Mack where he only circled winning trades. BM then even has him make webinars for BM showing his nonsense. Now here is the funny part, these are suppose to be your own personal journals for yourself, but he then goes on to make daily videos and he even then expands his journal and post his trades in both inside and outside the elite… Read more »
dtchurn
Guest
You’re absolutely right RobB. VigVanceVirgurgle should have been labeled a vendor from his first appearance on bmt especially as a stockbroker. Now that I think more about it, the other shammy details you mentioned are coming back to me. yes, I recall his posts and journal were laid back initially, then he ramped up the ridiculous wins day after day week after week along with the pandabeara where they would score win after win on crude futures. Sometimes incredibly scoring almost the entire major moves of the day like a secure roller coaster. I remember one of them boasting after… Read more »
dtchurn
Guest
I wonder if Wright wrote this “educational” article on his site about avoiding losing money and it was found out that he busted the accounts he attempted to trade with losing 99%! What a disgusting farce. http://www.globalfxclub.com/forex-education/10-ways-to-avoid-losing-money-in-forex/ It reminds me of the SchoolofTrade when the investigation actually got a look at the old live trading accounts of the Dufresnes where they actually lost over 100k probably before quit losing by procuring their shamsite’s monthly churn. I bet 90% or more of all these trading room frauds, if the feds investigated all their previous live accounts, their trading records would be… Read more »
dtchurn
Guest
I wonder if Wright wrote this “educational” article on his site about avoiding losing money when it was found out that he busted the accounts he attempted to trade with losing 99%! http://www.globalfxclub.com/forex-education/10-ways-to-avoid-losing-money-in-forex/ It reminds me of the SchoolofTrade when the investigation actually got a look at the old live trading accounts of the Dufresnes where they actually lost over 100k probably before quit losing by procuring their shamsite’s monthly churn. I bet 90% or more of all these trading room frauds, if the feds investigated all their previous live accounts, their trading records would be horribly averaged down ,… Read more »
Mike M
Guest
dtchurn, exactly why this fraud is going to get worse. New fraudsters growing up every day with a some knowledge on how to manipulate social media and there you go. You now have a successful hedge fund. That kid Jacob Whol tried it and got busted, but he still acts as if he is a hedge fund titan. Just absolutely crazy that someone worked so hard for their money only to lose it to a punk with an ego problem. How can some of these kids claim to be successful for 6 yeras or so and only be 19 at… Read more »
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