The Purpose of the Document
In the last few months, Dubai has experienced significant fraudulent investment scams involving Sigma One Capital and Gulf First Commercial Brokers. Numerous investors have stated to have lost significant amounts of money and they are claiming that investigations are occurring in Dubai and that unregulated trading platforms are operating in the emirate, which they have raised concern.
Introduction:
In Dubai, a city known for its vibrant financial scene, many people are drawn to investment opportunities. One such company that caught attention was Sigma One Capital. They promised high-frequency trading, expert advisors, and other attractive strategies to pull in investors keen on the forex market. Their glossy website and convincing pitches made it easy for many to jump on board. But behind this appealing image, there was a troubling reality that left a lot of folks facing serious financial troubles.
About Sigma One Capital
Sigma One Capital was the branding of an online trading platform providing an online service for forex, stock, indices, commodities, and cryptocurrency trading. The company made claims that online trading service consumers offered advanced trading tools through use of MetaTrader 5, competitive spreads and various plan account options (Standard, Elite, or Pro). It also offered bonuses of up to 50% on deposit offers.
Aside from these offerings, Sigma One Capital had no authorization with UAE regulators, the Dubai Financial Services Authority (DFSA), or the Securities and Commodities Authority (SCA). The company claimed to be located at an address in Dubai, at Musalla Tower, but our author was unable to find evidence of them being present at that location. The company was also simply registered in St. Lucia, a jurisdiction that does not strictly regulate financial activities.
Understanding Sigma One Capital/The Promises
- Top-Notch Trading Tools: Made use of MetaTrader 5 so clients could trade forex, stocks, indices, commodities and cryptocurrencies.
- Tight Spreads: Low spreads for over 150 products.
- Account Options: Standard, Elite, and Pro options that offered various accounts for different types of investors.
Due to the attractive bonuses Sigma One Capital offered clients, provided up to 50% bonus on deposits to entice the new investors to come on-board.
The Reality
Despite these features and services, there were a number of alarming concerns:
- Unregulated- Sigma One Capital was not regulated by UAE regulators, namely the DFSA or SCA.
- Incorrect Address – the company listed a Dubai Address (Musalla Tower and Suite 1407), but there were no records of the company operating at that address.
- Offshore registration- registered in St. Lucia which is an offshore jurisdiction and had awful regulatory and player protection.
- The Modus Operandi – How Investors Were Scammed.
Why Trade with Sigma One Capital?
1. Trade with Confidence
Trade with ease, knowing that you are using a trusted and relied upon platform! Whether on desktop or mobile, take comfort in knowing that we have engineered a low friction, secure, and seamless platform for you to control your trades anytime and anywhere.
2. Empowering You to Succeed
At Sigma One Capital, our business is centred only around you! There are no hidden agendas – just a trusted partner committed to helping you to achieve as a trader.
3. Maximizing your investment
Get the biggest slice of the pie. We offer competitive transparent fees and flexible options based on your trading requirements allowing you to maximize your money with Sigma One Capital!
Risk Statement
Investing in financial markets is risky. Investment in derivatives can result in losses that may exceed your original investment. Trading in securities, forex, commodities, options and futures risk, and may not be suitable for everyone, and you could lose part or all of your investment.
Prior to any investment in any of the products mentioned on the website of Sigma One Capital, you should obtain independent financial, legal, and tax advice, and confirm that such trading is allowed in your jurisdiction.
Our services are not offered, distributed, or made available where based on local law or regulation it is prohibited.
The Modus Operandi: How Investors Were Deceived
Aggressive Marketing Tactics
- Cold Called: Investors and potential investors received unsolicited calls that tried to entice them with guaranteed returns.
- Language Discrimination: The agents who made the initial call would deliberately choose local dialects, like Kannada in an attempt to build trust with the Indian expats living in the UAE.
- False Promise: Clients were then shown images or even fake account growth to dupe them into making further investments.
The Aftermath
Once substantial money was deposited:
- Blinded Communication: Clients could no longer contact their account Managers.
- Withdrawal Problems: Withdrawal requests were ignored or denied.
- Office Abandonment: The physical office in Dubai was abandoned with no trace of the firm.
Regulatory Oversight and Legal Proceedings
No licensing
Sigma One Capital operated without the required licenses from the financial authorities in the UAE. That made their business activities in the United Arab Emirates illegal.
Warnings in Other Countries
Financial regulators/banks in Italy (CONSOB) and in Spain (CNMV) provided warnings in their countries regarding Sigma Capital unauthorized financial services.
Lessons Learned: How to Protect Yourself from Investment Fraud
Red Flags to Avoid
- Unregulated Firms: Always check to see that the company is registered and regulated by the relevant financial authorities.
- Too Good to be True: Beware of assurances of guaranteed returns or larger bonuses than other investment firms.
- Pressure: Legitimate firms will not force or pressure you to make quick decisions.
What to do:
- Research: Be sure to do your due diligence before making any investments.
- Check with authorities: Look for regulatory announcements from the financial authorities and see if they have issued any warning or sanctions.
- Seek legal advice: If you have been victimized by a scam, talk to lawyers and see if you have any options to recover your money.
What now: The importance of vigilance.
Sigma One Capital should serve as a useful reminder of the importance of vigilance when it comes to investments. Although the potential to make money quickly can lure an investor in, it is important to question and research any investment opportunities. If you remain vigilant, you can protect yourself from suffering the same fate as the victims discussed in this report.
