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Gennaro Lanza – Fraud, CNMV Warning & Shell Companies

Gennaro Lanza is a forex scammer who runs multiple companies to defraud consumers. His fraudulent enterprises primarily target EU and UK residents. 

Some of his ventures include: 

DBInvesting

NewFX

Dubai FXM

Capital Solutions

DBFX

All of them are a part of his shady operation through which he makes people sign up for illegal forex trading schemes. 

Running one illegal forex scheme is one thing. But running a vast network of unlicensed, predatory scams is another.

The following review will expose how Gennaro Lanza operates and why you should avoid dealing with him at all costs. 

As of now, Gennaro Lanza has not responded nor has it apologized for its misdeeds. He has ignored our efforts to highlight the problems faced by their victims. Furthermore, he has only focused on propagating his fake PR.

Gennaro Lanza’s Web of Shell Companies: 

Gennaro Lanza might seem like a nobody to you but he is at the center of a vast network of shell companies.

A shell company is a corporate entity that only exists on paper. They are used by criminals to launder money and perform criminal activities. For example, Mouhammed Bousaleh is a drug kingpin who was recently exposed to a vast network of shell companies as well. 

Having multiple offshore entities allows criminals to bypass laws and run their illegal enterprises with less difficulty and supervision.

He controls the network through the boiler room, Capital Solutions (capitalsolutions.mt). 

Although Capital Solutions has a website, it doesn’t share any valuable information. The webpage is full of fluff and the company presents itself as a sales and marketing expert. 

According to the company’s website, it is an outsourcing company specializing in the management of customer relations and strategic implementations. The company claims to offer marketing, sales, and call center services. 

As you would expect from a shell company, Capital Solutions doesn’t provide any information on its ownership or management team. I learned about their owner and Gennaro Lanza through the Offshore Leaks database

Through the boiler room, he controls Dubai FXM, DBFX, NewFX, DBFX Trades, and DBInvesting. 

That’s not all. 

He has a vast network of shell companies:

Country and Company

Malta - Capital Solutions Ltd

Seychelles - Big Horizons Ltd, Invest Group Global Ltd, DB Invest Limited

Commonwealth of Dominica - Big Horizons Ltd, New Forex Limited

Vanuatu - Dubai FXM Limited, DBInvesting Limited, DBFX Limited

Apart from the firms I mentioned above, Gennaro Lanza runs Dupay LP (UK) and Belight Capital Group Ltd (Cyprus).

Belight Capital Group used to have a CIF license which was revoked by CySEC after seeing their illegal activities. The Cyprus Securities and Exchange Commission withdrew the license after being disappointed with their compliance with Article 22(1) of their law.

CySEC said that Gennaro Lanza’s firm had performed investment activities for six months before getting a suspension. Also, the watchdog ordered them to return all the funds and financial instruments belonging to its clients including ‘any profits’.

How the Scams of Gennaro Lanza Operate

When people visit the websites of any one of the forex companies Lanza runs, they would get a popup saying that ESMA measures wouldn’t apply here and that it’s the responsibility of the user to find a suitable broker. 

That’s it. 

Recently, some of the websites such as NewFX and DBFX have begun blocking access of EU customers, but plenty of them still allow them to access their websites. 

All of the forex companies Gennaro Lanza runs have no authorization to offer financial services in Europe. Furthermore, they violate basic FCA and ESMA laws such as allowing clients to make deposits without confirming their identities. 

Even though the forex scams are based offshore, plenty of them use European addresses or phone numbers. 

There used to be two additional members of the scam, Italo Mainofli and Massimiliano Moroni. However, they resigned in 2020 and sold their shares to Invest Group Global Ltd, another offshore entity. 

This company falls under the control of Gennaro Lanza. 

Recently, Gennaro has added a new company to his web, DBX Consultants. Also, he launched Karma Group, a real estate company in Cyprus, and released press releases about the same. 

DBInvesting: An Example of How Gennaro Lanza Defrauds Consumers

To understand how dangerous Gennaro Lanza’s entire network is, it would be best to take a more detailed look into one of his forex brokerage firms. 

I have chosen DBInvesting because it is still operational. 

DBInvesting is an offshore broker that claims to provide customers with MetaTrader 4, the most popular trading platform in the industry. However, the company failed to provide MT4. It lies about the platform so it could get people to sign up.

Furthermore, the company’s website mentions several of the shell companies present in Gennaro Lanza’s network such as  DB Invest Limited. 

The company has a Seychelles license but that doesn’t instill much confidence in their reliability because Seychelles is notorious for having poor regulations. Plenty of forex scams have licenses from such weakly regulated places but that doesn’t stop them from scamming others. Some examples include Kowela and MSP Limited.

This Gennaro Lanza firm uses the trading platform of DBFX Trades, which received a CNMV warning for being a scam. 

So, Lanza’s companies have received regulatory actions from different government authorities.

Another sign that it’s a scam is the 1:200 leverage it offers. Regulated brokers in the EU cannot offer more than 1:30 leverage so you can understand just how dangerous DBInvesting is. 

Also, the minimum deposit requirement of this broker is $200, much higher than the industry standard of $10. A high minimum deposit is a huge red flag because it’s the sum you are supposed to experiment with. 

Trusted brokers keep their minimum deposit requirement low so their clients get ample opportunity to try out their services without taking a significant financial risk. On the other hand, scammers keep their minimum deposit requirement so they can steal as much as possible from every victim. 

DBInvesting is just one example, Gennaro Lanza has a ton of similar companies and they all operate similarly. 

Conclusion

After going through the above points, it’s obvious that Gennaro Lanza is a dangerous criminal spearheading a large illegal operation. 

You should be extremely wary of him. 

Plenty of forex scammers utilize shell companies for money laundering and defrauding customers. For example, Infinox Capital was able to steal millions from its customers by using its Bahamas-based shell firm. 

Beware of Gennaro Lanza and his scams.

[therisinghorizon]

Armin Ordodary’s Scam Exposed

As we have previously mentioned

Con artists frequently allege that the Media violates copyright in its reports and warnings. The con artists use text and image pieces from Media for this reason, posting them backdated on some obscure websites. The scammers try to stop the content from showing up in Google search results by using the infringement accusations. All of these assertions have been denied by Google thus far. Armin Ordodary used this method most recently.

The turf in Belgrade

Living and working in Cyprus, Armin Ordodary (LinkedIn) runs two businesses, Benrich Trading Ltd. and Benrich Holdings Ltd., in addition to his other pursuits. Bizserve DOO, formerly known as Upmarkt DOO, is a subsidiary of the latter that runs a boiler room for different frauds in Serbia.

The FSMsmart deception

Additionally, Ordodary contributed to the creation of broker CRM software. To the best of our knowledge, Ordodary and its fraudulent operations are being looked into by some European authorities; but, as of yet, no legal action has been taken.

In particular, we are aware of one German law enforcement organisation that already maintains a sizable dossier of investigations.

It is also alleged that the boiler rooms run by Ordodary and his Upmarkt, also known as Bizserve, were a part of the Lau Scheme, which was allegedly carried out globally under a number of phoney brand names.

Identified brands and companies

Brands and Domains

FSM Smart – www.fsmsmart.com FSM Smarts – www.fsmssmarts.com

Legal Entities Benrich Holdings Ltd – Cyprus SIAO Ltd – Cyprus Bizserve DOO (previously Upmarkt DOO) – Serbia BizTech DOO – Serbia Corporate Structure in Cyprus

Cyprus’s highly favourable tax and corporate offerings are immediately and directly accessible to the firm, and it is strategically located as a stepping stone to Europe, the Middle East, Asia, and Africa. This company collaborates closely with a group of extremely specialized businesses to provide a broad variety of corporate, business, and tax services to both domestic and foreign clients.

Mission and Values

Their mission at Armin Ordodary Group is to lead clients toward real, significant results. Their heritage, which was founded in 2014 by Armin Ordodary, is based on excellence.

As a leading worldwide strategic consulting firm with a significant presence in the Middle East, Europe, and Asia-Pacific, Armin Ordodary Group is what it is today. With pride, Armin Ordodary serves as the company’s global general counsel. Their specialty is providing customers with strategic guidance. Many of their clients are managing unprecedented upheavals in their industries and are looking for fresh perspectives on urgent business issues.

Their overarching goal is still to enable client success. Media analyse these problems via distinct perspectives, searching for ground-breaking ideas and revolutionary answers. With our impartial, data-driven approach, they help the clients discover important business realities.

[therisinghorizon]

Gerchikco (Gerchik and Co): Is this is a Reliable Broker? The Tryth Exposed

Gerchikco aka Gerchik and Co is a product of a famous man called Alexander Gerchik. He appeared in a documentary called the Wall Street Warriors. However, just because a forex broker has a celebrity’s backing, it doesn’t mean it’s reliable. There are a lot of factors to consider, the broker’s regulation, address, trading conditions, and a whole lot more before I can say it’s worth your time and money.

Gerchikco License and Regulation

Gerchik and Co is based in Vanuatu, an offshore region. However, even though Vanuatu is an offshore region, it has a financial regulator, the Vanuatu Financial Services Commission. When I checked the VFSC’s register for Gerchikco’s name, I found that they are really registered there and hold a license.

It’s a good sign. 

In order to get a license from VFSC, a broker must deposit $50,000 as the security bond with the local Registrar of the Supreme Court. This measure ensures that the broker acts in the interests of its clients and not against them. 

Read about: HighTopFX

I also found out that your funds will remain separate from the broker’s funds, ensuring that the broker can’t take them. In case a dispute occurs, you might get 20,000 compensation from the Financial Commission, which is another assurance of Gerchikco’s reliability. 

However, VFSC is not among the most reputed regulatory authorities. 

Stricter financial regulators exist in many regions such as the US and Europe. These regulators impose heavy restrictions and laws on forex brokers (and similar service providers) to ensure that the broker doesn’t act against the interests of its client. 

How can you spot a broker who is trying to deceive you?

A broker’s credentials, registration, and job history can be reviewed using BrokerCheck, a free online tool provided by FINRA. Disputes with clients, disciplinary actions, and specific financial and criminal matters on the broker’s record are all covered in the disclosure portion of BrokerCheck.

On top of that, regulators like FCA offer insurance compensation in case the broker steals the funds of their clients. For example, FCA can give you up to £85,000 if an FCA-regulated broker steals your funds.

It would be best to go with brokers that have a license from CySEC or FCA depending on your region. They have stronger regulations and keep a closer watch on their licensed brokers. 

Gerchikco Trading Conditions

You should always check the trading conditions of a forex broker before doing business with them. Let’s see what are trading conditions of this broker:

Trading Platform 

To be honest, the best trading platforms available in the industry are Metatrader 4 and 5. Almost all reputed forex brokers use these platforms because they offer a ton of features. 

And Gerchik and Co understands this fact very well. They provide you with both of the trading platforms, MetaTrader 4 and MetaTrader 5. You get access to MetaTrader’s app market, trading tools, and automated trading, all of which simplify your trading experience and make it easier for you to trade. 

The charting features of MetaTrader platforms are quite impressive and are certainly worth considering. They offer plenty of technical analysis indicators such as Bollinger Bands and Fibonacci retracement, simplifying your trading experience further and ensuring that you get the best chances of making profits.

It’s great that Gerchikco offers MetaTrader 4 and 5 platforms to its clients. 

Minimum Deposit

Gerchikco has kept its minimum deposit requirement quite accessible at $100. Although it’s a little higher than you would expect from a reliable broker, it’s not too high as shady brokers keep.

Many forex scams keep their initial deposit requirement high which allows them to grab a lot of funds immediately. Such brokers are aware of their pathetic services and so, they don’t give you a chance to test out their services beforehand. Instead, they force you to make a big financial commitment. In case you decide to discontinue availing their services, they will steal the huge deposit you had made. 

It’s a common strategy among shady forex brokers and that’s why I don’t recommend trading with such brokers. 

Leverage and Spreads

Everything was looking great until I checked the broker’s offered leverage. Gerchikco offers 1:100 leverage ratio, which is too high by industry standards. 

High leverage is usually a sign of a scam. This is why financial regulators restrict their brokers on how much leverage they can offer to their clients. For example, the UK-based regulator FCA doesn’t allow its brokers to offer a leverage ratio higher than 1:30. 

High leverage ratios can wipe out all of your earnings and even put you in debt quickly. They are very risky, especially if you’re a beginner. 

Gerchikco offers tight spreads of 0.4 pips. The spreads determine the cost of each trade for a trader and that’s why the tighter they are, the better is the broker.

Trading Accounts

Gerchikco offers multiple trading accounts to its clients:

Easy Start for Investors

This account requires a minimum investment of $100 and offers you 1:100 leverage and statistics. You’d have to pay $10 commission per lot. 

Mini

This account requires a minimum deposit of $500 and offers all the benefits of the previous account along with the feature of Algo Trading. You’d have to pay $10 commission per lot with this account. 

Simple

This account requires a minimum investment of $1000. You get all the benefits of the previous accounts and have to pay $10 per lot. 

Silver

This account requires a minimum deposit of $10,000. You’d have to pay $9 fee per lot and get all the benefits of the previous accounts. 

Gold

The Gold account requires a minimum investment of $25,000. You’d have to pay $8 commission per lot and get all the benefits of the previous accounts. 

Platinum

The minimum deposit for this account is $100,000 and offers all the benefits of the previous accounts. In addition to those benefits you’d only have to pay $7 commission per lot and get 0 spread. Gerchik and Co offers you dedicated custom bots with this account as well. 

Gerchikco Payment Methods and Charges

Transaction Methods

Gerchikco provides you with several payment options. You can fund your trading account with WebMoney, Bitcoin, ADVCash, Neteller, credit card, Payeer, Skrill, PerfectMoney, and bank transfer. However, I recommend funding your trading account only with bank cards as they let you file a chargeback 540 days since the date of making the deposit. This way, if something goes wrong, you can still get your money back. Bank transfer and Bitcoin payments are non-refundable so it’s best to avoid using them. 

Fees

The broker doesn’t charge anything for making deposit and withdrawals. Gerchikco charges you commission per lot depending on your trading account. They claim to process withdrawal requests within a business day which is quicker than the industry average of 48 average. 

Offered Bonuses

Things looked quite good until I read their terms and conditions. Gerchik and Co offers bonuses to its clients however, it doesn’t mention them on its website. 

Reputed financial regulators such as FCA don’t let their brokers offer bonuses to their clients because they make withdrawals trickier and complicate the situation. 

Similar Post: FXGroup100

Moreover, a common strategy among shady forex brokers is they would offer you a ton of bonuses. Bonuses in the forex industry are notorious as they allow the broker to complicate the withdrawal process for the user. The funds you receive in a bonus always belong to the broker, not you. 

Should You Trade with Gerchikco? No

The forex industry attracts a lot of scams and they are of various sorts. Some scammers tend to give an unsolicited call and claim that you’re eligible for a random bonus. Others would run ads on the internet claiming to offer attractive deposit bonuses or easy profits. 

Creating a website and filling it with lies is very easy. And these scammers target inexperienced traders too. Usually, these brokers operate from offshore areas such as St. Vincent or the Commonwealth of Dominica. They operate from such areas because these places don’t have financial regulators like the US or the UK. So they don’t have to follow any strict laws and can easily steal the funds of their users without facing any legal repercussions. 

You should always check a broker’s regulation and T&C’s before trading with them.

The regulator of Gerchikco is not a reputed one. Even though they follow a lot of procedures that ensure that the broker won’t act against your interests, the terms and conditions of the broker weren’t good.

First, there’s the issue of high minimum deposit requirements. There are plenty of reputed brokers that have minimum deposit requirements as low as $5. So it doesn’t make sense to choose this option when you have better options available. 

Second, the broker claims to offer bonuses in its terms and conditions. Bonuses can make it very difficult for you to get withdrawals. 

Gerchikco Review: Conclusion

Gerchikco doesn’t seem like a scam but it’s not a good option. You can find much better options in the market and you don’t have to trade with this broker. I don’t recommend trading with them. 

There are many scams in the forex industry. And they keep growing. The best way to combat these scams is to spread the truth about them so their schemes would fail before they even start. 

If you know someone who’s interested in forex trading, share this article with them. They should know the truth about such scammers.