Forex Entourage was a multi-level marketing company that claimed to provide forex trading education, software, and signals to its members. The company was founded in 2016 by Paul Garcia, who had a history of involvement in other MLM schemes.
Forex Entourage’s business model relied heavily on recruitment, with members earning commissions for bringing in new members and selling the company’s products. The company promised its members the opportunity to earn passive income by following their trading signals and using their software to make profitable trades in the forex market.
However, the company soon came under scrutiny from regulators and investors who were skeptical of its claims and business practices. In 2018, the Securities and Exchange Commission (SEC) charged Forex Entourage with operating an illegal Ponzi scheme.
According to the SEC, Forex Entourage misled investors by exaggerating the potential profits from forex trading and downplaying the risks involved. The company also failed to disclose that the majority of its revenue came from recruiting new members rather than actual trading profits.
As a result of the SEC’s charges, Forex Entourage was forced to shut down its operations and pay a $1.8 million fine. The company’s assets were also frozen, and its founders were banned from participating in any future MLM schemes.
The downfall of Forex Entourage serves as a cautionary tale for investors and consumers who are considering investing in MLM schemes. While some MLM companies may offer legitimate products and services, many are built on the promise of easy money and rely on recruitment to generate revenue.
Investors should always do their due diligence before investing in any MLM scheme and be wary of companies that make unrealistic promises or rely heavily on recruitment. Additionally, regulators should continue to monitor and investigate MLM schemes to protect consumers from fraud and scams.
In conclusion, Forex Entourage was a forex trading MLM company that promised its members the opportunity to earn passive income through trading signals and software. However, the company was charged with operating an illegal Ponzi scheme by the SEC and was forced to shut down its operations and pay a hefty fine. The downfall of Forex Entourage serves as a warning to investors and regulators about the risks associated with MLM schemes and the importance of due diligence and oversight.
