Thursday 7 October 2010

Crown Currency failure may have Golden sister

Thanks to an anonymous email I have been alerted to a further development in the Crown Currency debacle.

Now, Foreign Currency exchange has always been a big market for the darker sides of our society. After all, dealing in cash has obvious attractions. Another angle of late has been to con retail investors out of money by getting them to play with Currency trading. Using high leverage you are guaranteed to lose. FT Alphaville has exposed this scam many times over. To dateit has not stopped these type of companies sponsoring Premier League football clubs or inspired the FSA to actually do anything.

Anyway, back to the Crown currency collapse of which little is known at the moment. All I can see is that Barclays have £2 million and about £20 million is owed. It could be a pure ponzi scheme or something similar. Anyway, under UK law you have no protection so the poor people who have got involved in this company trying to get FX for the future are going to suffer.

Then we come to Mayfair and Grant, whose shareholders are also Peter (previous form) and Susan Benstead of Hayle in Cornwall, same as Crown Currency. This company sells small amounts of gold at amazing prices which they sell online and store for you on their premises...I would not be very happy if I had put money there recently.  I wonder when we will find out how much Gold is in the vaults? Not surprising schemers like this pick on areas where retail punters are getting lured into a toppy bull market.

The story gets worse, as another main shareholder of Crown Currency is Edward James, a Tory Councillor in Somerset and one of the leaders of the Tories in the County.


Steven_L said...

I've been reckoning the time to get out of gold/silver is when instead of seeing lots of adverts wanting to buy it off you, they all want to sell it you.

I wonder if this is a signal?

Richard Elliot said...

I've been using UKForex for my needs to get funds between to countries.

The Crown Exchange story is a scary tale as I wouldn't like to lose my cash. However, I'm always trading spot and not speculating on Forwards which are going to give you more counterparty risk.

Anonymous said...

you need to look at grants of cornwall too , especially the about us page

( same directors btw )

oh and have a look at tor currency exchanges directors . share holders / past directors

join moneysaving for loads more

Steven_L said...

RE, aren't you in banking, so know what 'buying forward' and 'counterparty risk' is?

Average Joe taking my missus to Florida doesn't think like that.

Richard Elliot said...

@SL - yes I am in banking, although I don't work on a trading desk. Still, as you say, I'll be a lot more aware of the risks than your average person.

Anonymous said...

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Anonymous said...

Anything to do with Benstead and James - give it a miss!!!! Am sure the thousands that have lost money through Crown Currency will tell you the same.