We have covered the scam operator Armin Ordodary, a Cyprus resident since 2018. In some reports, we have analyzed for example the FSM Scam with the Upmarkt Boiler Room in Belgrade, Serbia. In some conversations, WhatsApp and Telegram communications we have received additional information. From all this information it is clear that Armin Ordodary was just a small wheel in the big Lau Scheme with the headquarters in Kiev, Ukraine. Through numerous offshore companies, the Lau Scheme has operated many broker scams. Up until today, FSM Smart is online as an online broker with the new domain www.fsmsmarts.com.
FSM Smart Broker Scam
The illegal broker scheme FSM Smart (www.fsmsmart.com) has been aggressively acquiring clients via their Serbian boiler room Upmarket d.o.o. The sole shareholder of this boiler room is the Cyprus-registered Benrich Holdings Ltd. The Director of both companies is the Cyprus resident Armin Ordodary. Upmarkt is only one of several boiler rooms of the Lau Global Services Corp scheme. According to the information available to FinTelegrem FSM Smart and Armin Ordodary are part of the “Lau Scheme“.
The Serbian Upmarkt d.o.o. evidently is a part of the globally acting “Lau Scheme.“ The scam brand FSM Smart launched sometime early 2018 with an official address in Switzerland (Hertensteinstrasse 51, 6004 Luzern). Soon financial market regulators issued warnings against the scheme:
- August 2018: New Zealand Financial Markets Authority (FMA) issued a warning against FSM Smart in Summer 2018.
- Nov 2018: Switzerland’s financial market supervisory authority FINMA issued a warning against FSM Smart Limited;
- Nov 2018: the Canadian watchdog in Manitoba (MSC) issued an investor warning against FSM Smart;
- Nov 2018: Australian regulator ASIC warns against the scam.
- March 2019: UK FCA issues an investor warning against the scam.
- June 2019: the Canadian regulator OSC warns against FSM Smart Limited.
The Lau Scheme
In August 2017, the IFSC Belize informed the public that Lau Global Services Corp trading as MXTrade is no longer authorized to do so. As a matter of fact, the FSM Smart scam and its people are closely connected to other scams such as MTI Markets (www.mtimarkets.com). According to our information, the scams listed below have been operated by a Lau Global Services Corp:
- MXTrade (www.mxtrade.com)
- LGS Corp (www.lgs-corp.com)
- TradingBanks (www.tradingbanks.com)
- Trade12 (www.trade12.com)
- MTI Markets (www.mtimarkets.com)
- Grizzly (www.grizzly-ltd.com)
The FinTelegram team has been able to identify a variety of firms connected with the Lau Global Services Group:
- Lau Global Services Corp (Belize)
- Upmarkt d.o.o. (Serbia)
- Exo Capital Markets Ltd (Marshall Islands)
- Global Fin Services Ltd (UK)
- MTI Investments LLC or MTI Markets Ltd (Marshall Islands)
- Grizzly Ltd (Malta)
- R Capital Solutions Ltd (Cyprus)
- Benrich Holdings Ltd (Cyprus)
- Eyar Financial Corp Limited (Vanatu)
- SIAO Ltd (Cyprus)
The companies mostly have no (or no longer) a website and/or social media presence.
The scams associated with Lau Global Services Corp received many warnings from regulators in different jurisdictions:
- Aug 2015: Italian CONSOB issued an investor warning against Lau Global Services and MXTrade;
- Sept 2015: Cyprus watchdog CySec issued an investor warning against Lau Global Services and MXTrade;
- April 2016: Belgian FSMA issued an investor warning in April 2016
- Nov 2016: Australian ASIC issued an investor warning against MXTrade;
- Nov 2016: New Zealand’s FMA issued an investor warning against EXO Capital Markets Ltd trading as Trade12;
- Sept 2017: CySEC warned against Lau Global Services and MXTrade;
- Nov 2017: Guernsey regulator issued an investor warning against Exo Capital Markets Ltd trading as Trade12
- and many more for the different trading styles (domains/brands)
Most of the illegal broker sites of this network are offline now but the Facebook page of Lau Global Service Corp is still available. Allegedly, MXTrade used to be a brand owned and operated by R Capital Solutions Limited, a financial services company registered in Cyprus (HE329922) and authorized and regulated by the Cyprus Securities Exchange Commission under license number 246/14. Purportedly, the MXTrade brand and clients were transferred to Lau Global Services Corp in 2015. In a respective statement, however, R Capital Solutions denies that it ever had connections with MXTrade:
Reading through some forums, however, it seems that until mid-2015 R Captial Solutions was indeed involved with MXTrader. FinTelegram has been provided with Emails that suggest that R Capital Solutions actually operated MXTrade until mid-2015. According to an archived website of MXTrade, R Capital Solutions Ltd was presented as the official owner until or around 2015:
According to Offshore Leaks Database, Lau Global Services is also a shareholder of the Malta-based Grizzly Ltd which used to act as payment services operator for those illegal and fraudulent broker schemes.
Grizzly was the payment processor of MTI Markets scam (archived website of MTI Markets), for example. The Israeli Shlomo Matan Shalom Avshalom (Offshore Leaks) is registered as a director in this Grizzly Ltd. According to different sources and forums, this Grizzly owned some own illegal trading brands too and was an active element in “Lau Scheme”.
People in the network
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