Corporations Commissioner Orders 18 Companies to Halt Sales; Warns of "Explosion of Foreign Currency Scams".LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--June 22, 1998--Commissioner of Corporations Dale Bonner Monday announced that he has issued 13 orders against 18 companies and 23 individuals for illegally selling foreign currency investments to ethnic communities in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . "We have seen an explosion of illegal foreign currency investments targeting the Asian communities in Southern California," Commissioner Bonner stated. "They claim to be offering investors the opportunity to speculate in the foreign currency markets in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and elsewhere, but these are illegal contracts in California and investors have no way of assuring themselves that any trades are actually being made." Investors are offered the opportunity to speculate on price fluctuations in the monetary markets, and are asked to invest from $5,000 to $200,000 with the companies on promises that the expertise of the companies will allow them to make a profit. Ethnic employees are frequently recruited as salespersons and asked to bring in friends and new investors from their own communities. Trades seeking to profit on the fluctuations in foreign currency values are allegedly made on behalf of the investors, but complaints indicate that promised returns are not realized. "Because of their cohesiveness and trust, ethnic communities offer a golden opportunity for unscrupulous opportunists to target their own communities for investments that seek to profit from world currency prices," Bonner stated. "The problem is that the Hong Kong market is merely an interbank in·ter·bank adj. Relating to, involving, or connecting two or more banks: interbank borrowing; an interbank network of automated teller machines. trading relationship and small investors Small investor An individual person investing in small quantities of stock or bonds. This group of investors makes up a minimal fraction of total stock ownership. small investor have no protections in the form of organized market procedures and surveillance. The minute the money leaves California, the investor has no assurances that there are any regulatory controls in place to protect him or her from victimization victimization Social medicine The abuse of the disenfranchised–eg, those underage, elderly, ♀, mentally retarded, illegal aliens, or other, by coercing them into illegal activities–eg, drug trade, pornography, prostitution. ." The companies named in the orders are: 1. Currex International Corp. of Los Angeles 2. Golden Capital International Financial Inc. of Alhambra, Calif. 3. Noble Wealth Inc. of Burbank, Calif. 4. Newport Chase Trust Capital Growth of Newport Beach, Calif. 5. Newportchase International Inc. of Newport Beach, Calif. 6. General Financial of Los Angeles 7. Currex International Corp. of Los Angeles 8. Cash Investment Group of City of Industry, Calif. 9. Delong Foreign Exchange Inc. aka DFX Inc. of Alhambra, Calif. 10. China Development Group Corp. of El Monte, Calif. 11. Morex Financial Inc. of Los Angeles and Anaheim, Calif. 12. Centrex Management Inc. of Los Angeles 13. CMI Inc. of Los Angeles 14. Fortrex Management Corp. of Los Angeles 15. Global Risk Management Ltd. of Los Angeles 16. Optima Financial Services of Pasadena, Calif. 17. Draco Trading Inc. of Pasadena, Calif. 18. TDM Global Exchange of Los Angeles "We have been targeting illegal off exchange futures contracts Futures Contract An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future. Futures contracts are transferable between parties. in foreign currencies for several years and the problem does not seem to be letting up," Bonner said. "I am hoping that these actions we are announcing today will dramatize dram·a·tize v. dram·a·tized, dram·a·tiz·ing, dram·a·tiz·es v.tr. 1. To adapt (a literary work) for dramatic presentation, as in a theater or on television or radio. 2. the fact that it is illegal to offer speculative investments in foreign currencies in California. We will continue to bring enforcement actions until all of these illegal operations are shut down." The Department of Corporations is a licensing and regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. reporting to the Business, Transportation and Housing Agency and to Governor Pete Wilson For others named Pete Wilson, see . Peter Barton Wilson (born August 23, 1933) is an American Republican politician from California. Wilson served as the thirty-sixth Governor of California (1991–1999), the culmination of more than three decades in the public arena that .
CONTACT: Department of Corporations
G.W. McDonald, 213/736-3704; Fax: 213/736-2117
Julie Stewart, 916/323-7120; Fax: 916/322-3205
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