PipStop

Avoid an investment scam. One word comes to mind for me, Transparency. If someone isn't upfront or is elusive in giving you common sense information - like where are you located? - then you have a problem.

I've been corresponding with an independent sales representative of Horizon FX a "Forex" fund with an office here in Vancouver. When I had opportunity to meet with him a few months ago, there just seemed to be too many holes in what the company had to offer.

There was no transparency in WHO traded the funds, WHERE the funds were held - just a seemingly consistent track record that averaged a 1% return a week. So nothing to raise alarm bells. 

At the time, I discussed it with Douglas Sereda, a partner of mine at Trading Post, who's been in the investment business for over 25 years. Doug's response? "Tell him to get every penny out that he and those he referred to the fund out."

I relayed the information, and got a typical don't worry about it response. Well, tonight, I got the following email.

wow, your feelings were right. This issue was a sign that dragged on way too long and I found out some very interesting news from others involved with Horizon. I'll have to dig deeper and get some more

http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D8U6JHP80#adSkip
http://www.portfolio.com/news-markets/national-news/ap/2008/01/15/man-held-in-alleged-68m-forex-scam

they are the traders in NY behind the scenes with Horizon. I can let out an enormous sigh of relief I got out in the green for this one.