Lost 200,000 due to false risk information by investment agent

I had never invested in forex before and was not at all aware of the 'forex margin' account. I was approached by a financial agent who promised that by investing in this tool, I could make upto 30% in a week or so. I asked him specifically whether my principal was safe. He replied yes. He asked me for HK$50000 and I gave him. He invested and after gaining 4000 after 3 days lost almost everything, came running to ask me for 50000 more, pretending that by doing this my profits will double. I, stupidly gave him another check on the promise that I will receive all money back for a payment I had to make to my contractor (for whom I had saved this money). The agent said 'sure'. Then I had to leave for vacation for a month and the agent promised me things would be great when I came back. When I came back, I was asked to put in 50000 more if I wanted to save my principal. Now I was panicking and in order to save paid 50000 more and then again 50000 more recently. They are askingme again that 2 of my 4 orders have been cut and I need to pay more. I have taken out all the loan I could and in fact owe a lot of money to different people.


I want to sue the company. Questions: WIll I have to pay a lot to the legal firm? If yes, can I get this back if I win the case? What are the chances of winning this case? Do I have to pay the legal firm at the beginning?


Are there any other avenues of complaint so that I do not have to go to court? Will teh company pay my lost principal if I complain to another forum?


Cheers

ecshari

Call the police. If things happened exactly as you discribed, it is likely that you were the victim of a finanical crime rather than investment gone bad.

Yes, according to the agent, if I do not put HK$50,000 more, the company will have to cut the two orders left soon. If I stop the investment account, I will only be able to get HK$6000. Rediculous! The agent is scared now and offers to close teh account and give me his commission which he claims is HK$3000.

This is really enlightening. Thank you. I feel that I was rather naive but would not like to let the group get away with this. Do you think I should take legal action directly or contact SFC/Ombudsman/ICAC/Consumer council.

You should definitely go to the police, but I suspect the chances of you getting any money back are very very slim. If it is a scam, the perpetrators may be brought to justice, but the money is probably long gone. If it was a legitimate investment scheme, well, investments can go up and they can go down. If they went down, then the money is gone.


I'm wondering what made you give someone you hardly knew so much money on nothing but promises?

People the only people getting free lunch are the police at mcdonalds

I trusted the company and the person at first. Later I realised that even though I was losing, the agents wanted me to keep investing as they would be getting commission each time I invested a lumpsum. I realised this much later.


Although getting the money back may not be easy, I believe, I need to bring this to the notice of authorities. I know that SFC has fined an agent who benifitted from an illegal insider trading exactly the amount he made. IF that is the precedent, the company may be fined and I may be able to receive some compensation. At least, the SFC will learn about the malpractices and the agents will be reprimanded.

Use any professional body / association first as they will act without fee.


Then the police and the financial authorities who govern this type of business.


Of course, to satisfy your anger, you could go looking for a (young) Jackie Chan type!