A man from the United States has pleaded guilty to carrying on a business for a fraudulent purpose, involving more than $18 million from over 1,300 clients. Michael Philip Atkins, 51, was arrested in 2014 but jumped bail. He was later extradited from the US to Singapore in March 2023.
According to The New Paper, Atkins was a majority shareholder of the firm, Aureus Capital, which offered leveraged foreign exchange trading services and schemes between April 2013 and July 2014. Clients entered into agreements allowing Aureus Capital to engage in forex trading on their behalf, with the company entitled to 40 to 50 per cent of the profits generated from the trading.
However, instead of using the clients’ funds for forex trading, more than $14.7 million was used for other purposes, such as paying Aureus Capital’s directors, including Atkins. Only around $1.7 million of the more than $18 million was deposited into Oanda, the court heard.
The scheme was run in the style of a classic ‘Ponzi’, where the purported returns to clients were paid using the funds from other clients. Such a business model was clearly unsustainable and the company finally imploded.
Atkins will be sentenced on April 25. The prosecutor has urged the court to sentence him to up to three years and eight months’ jail, adding that all losses caused to the clients of Aureus must be directly attributable to him only.
This case highlights the importance of vigilance and due diligence when investing in financial schemes. It is crucial to ensure that the company and its directors are reputable and trustworthy, and that the investment is legitimate and sustainable.
As a writer for a news website, it is essential to maintain journalistic standards and style, and to ensure originality and avoid plagiarism. In this case, it is important to accurately report the facts of the case, while also highlighting the potential risks and consequences of investing in fraudulent schemes.
In conclusion, the case of Michael Philip Atkins serves as a reminder of the importance of due diligence and vigilance when investing in financial schemes. It is crucial to ensure that the company and its directors are reputable and trustworthy, and that the investment is legitimate and sustainable.