News

April 10, 2009

Caution when investing assets in unauthorized investment programs - warning

During the recent period in the territory of Slovenia we have been detecting a larger number of dealers, including those unauthorized, who offer investments of assets in investment programs - currency "forex" transactions, as well as an increased interest of investors for such transactions. In the majority of cases dealers promise unusually high returns, which also present a high risk.

Under the cover of investing assets on the international cash stock exchange "Forex", unauthorized dealers collect contributions from investors of amounts of at least 5.000 EUR, while the maximum contributions are not defined. Promoters promise large returns to investors, up to 20 percent per month. Transactions are usually performed in cash. Such transactions by unauthorized dealers are frequently offered through web pages or at lectures, organized for small circles of people.

According to the available data, in such cases there is a reasonable suspicion of criminal offence. Operations of unauthorized dealers may contain elements of the criminal offence of organizing money chains and illegal gambling in accordance with Article 212 or the criminal offence of fraud in accordance with Article 211 of the Penal Code.

In connection with this, the police advise extreme caution to possible investors when deciding to conclude such transactions, especially to investors, who have less experience in trading with financial instruments.

Special caution is advised in cases when dealers promise unusually high returns and demand mandatory payments to accounts abroad.

Citizens, who are currently considering such investments, are advised to find all proper information prior to the transaction, become acquainted with all types of risk and demand data from service providers. From dealers, the citizens should demand the statement of all performed transactions, which must contain the name and surname of a client, account number of a client, code of a financial instrument, amount, price, type of transaction, all costs and similar.

Citizens, who would like to invest their assets in legal investment programs, are advised to seek assistance of brokerage companies and banks, which have an authorization of the Securities Market Agency or Bank of Slovenia for the provision of investment services and transactions.