cashchronicles

[cashchronicles]

Exposing The 'FSM SCHEME'

Online trading scam broker called FSM Smart is part of an incredibly large scam group, rarely spoken of or systematically exposed, due to many illegal unconnected brands and quite complicated and fluid network of shells, off-shores, PSPs and BPOs worldwide. Indeed smartly put, the name serves them well. At the time, the Fintelegram did a good job in exposing some parts and initiating the public attention, that was previously restricted to warnings to particular brands and occasional info scattered across many different forums. Apparently, they had problems because of it. However, the full story is yet to be told. We hope to bring more clarity and tie the missing parts. For sure it will not be a complete report, but joint efforts bear fruits, eventually. The full story should be revealed by the Law, not us or others. So far, the representatives of the law have done very little, mainly due to scheme’s multi jurisdictional and transnational nature.

The beneficial owner(s) are well hidden and this vast group obviously has no intention to stop. We shall try to do our best to unmask this ‘giant’ as much as possible. For the purpose of clarity, we shall generically call them ‘’the FSM scheme’’ since its brand FSM Smart is probably the biggest and longest standing one. This thread will be quite long and posted in successive parts, due to the size on info we aim to display on FPA, so you are warned that it will take patience and attention to follow. No shortcuts here or easy solutions.

The named ‘FSM scheme’ is comprised of (up to now known) following scam brands/trading styles: 1. MTI Markets www.mtimarkets.com 2. TradingBanks www.grizzly-ltd.com also t/a www.tradingbanks.com (own trade platform+TradingBanks) 3. MX Trade www.mxtrade.com 4. Trade12 www.trade12.com 5. HQBroker www.hqbroker.com (up to this thread, probably never associated to FSM Smart brand before) 6. FSM Smart www.fsmsmart.com, www.fsmsmarts.com, www.it.fsmsmart.net, www.fsmsmart-ltd.com

We are positive that more brands are involved or were a part of this. This organization is truly like an Octopus. But as any other such group, made the same mistakes when registering various companies and using 3rd parties providers, leaving traces behind. Now days, scammers are much more cautious, in general, as there is more focus on scams, narrowing down their operating boundaries. First brand operator of MX Trade scam appeared to be a 2014 est.&CySEC regulated/FCA-passport company R Capital Solutions Ltd, FCA, CySEC, CY registrar. Owner was a Romanian citizen residing in Cyprus, Mr. Victor Florin Safta, who had another linked company in the UK, F Capital Solutions LtdCompanies House Reg. CySEC regulated R Capital Solutions claimed they never operated MX Trade by issuing a public statement:

Anyhow, whoever the scam operator was, once compromised, quickly switched to 2014 est.&Belize incorporated Lau Global Services Corpwww.lgs-corp.com (now defunct BZ reg.search) operating MX Trade as of April 2015 (per T&C archive) which is a standard next step that all scammers make, when the brand is exposed. Lau Global was a full scam from day one, FB page still online, ASIC warning, CySEC warningIFSC warning, FSMA warning revealing that deposits went to Taris Financial Corp, not present in offshore leaks, Cypriot, Vanuatu, Belize or Marshal Islands registers, but with bank account in Cyprus, meaning it had to be incorporated somewhere to obtain a bank account. Possible best match via google search would be a few companies named Taris from Riga, Latvia, or Sofia, Bulgaria, but it’s just a random speculation with no actual meaning, or any insinuation towards those companies. Whatever it is, it’s obvious that they continued a scam. Lau Global, thanks to ICIJ offshore leaks, can be de-masked fully: Offshoreleaks-LauGlobal. Lau Global was the sole shareholder of 2014 Malta-incorporated Grizzly Ltd. Looks like the entire structure from the start was prepared in 2014 and, once the time came, just relocated, implying a plan/intention, from the start. Grizzly Ltd has one owner, Mr. Shlomo Matan Shalom Avshalom, an Israeli national, with Philippines address, per offshore leaks. This was very indicative to us, as we had the information some time ago to pursue some lawyers and Philippines call centers direction, to get to the bottom of this scheme setup. So we did. Others who looked into this information just continued with having a name from offshore leaks, but no more. Let’s have a look at this Mr Avshalom more, shall we?

In offshore leaks, Shlomo Matan Shalom Avshalom, linked to Philippines and Israel residency addresses, is the director and legal/judicial representative of Malta based Quick Solutions Ltd (2014) and Grizzly Ltd (2015), with his registered address (another company): BSD Trading Service Corp, Office O5M, Berthaphil Compound, Jose Abad Santos Avenue, Angeles, Pampanga, Philippines. Quick Solutions is owned by Belize IBC called High Moon International Inc, while Grizzly Ltd is owned by Belize IBC Lau Global Service Corp. Both Grizzly and Quick solutions have the identical Malta address registered. Back to business. Following the trail of the lawyer and the Philippines address, we land at Pampanga, PH. A well-known place for numerous call-centers, as well as India for example, again industry-wide known facts. Truly a lot of customer care offices for hundreds of different businesses, an army of cheap multilingual workforce. Over the years, we all witnessed even some police raids to scam call centers, over there they even announce it on TV, with full press conference and detained agent’s close-ups on national frequencies. As for our story, the address in offshore leaks revealed Mr. Avshalom’s Pampanga address for BSD Trade Services Corp or rather, BSD Trading Services Corp. BSD Trading/Trade Serv. Corp is actually a Philippines BPO, a call-center, however incorporated in Singapore. Going back to already explained ties to BSD Trade Services Corp issue, a closer look at its nonfunctional website via domain-data tools, after checking this job add: call center job advertisement, one can learn quite a lot. Actually, too much… BSD Trade Services Corp domainbigdata check. The company registered a domain indicating a HK incorporation, domain is not privately registered but via the company (!), name and phone of the registrant also indicated, registrant’s name (2015) Mr. Richard Bula. Mr. Bula holds 31 registrations in his name, per same tool search: R-Bula-domain-registrations and the results are shocking, to say the least.