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Metrox Alliance - Buyer Beware

Thursday, May 30, 2013 - 10:18 AM
I am working on a blog post, but I know numerous people visit this site too.  One of my clients almost wired $500,000 to these people and I am quite sure they are a fraud.  Thankfully, my client called me first and asked us to check them out.

The URL is http://metroxbrokersltd.com/?page_id=194 (Note I purposely did not make this an active link).

They claim to be members of SIPC and FDIC.  They are neither.  I called FINRA and SIPC.  SIPC took down a complaint.  I also searched the FDIC for a Metrox bank.  No such entity.  I also filed an alert with the FDIC.

They apparently are coming up in various CD searches not sure if it was through ads or organic listings.  Their rates are above what else you will find, but not so high that they seem super crazy.  They claim your account is held with Chase Bank and is invested in banks in other countries.

So be very weary of this company.  I did call the company and spoke with a Bob Gordon.  When I questioned him on the SIPC membership he said compliance would have to call me back.  That was about 3-days ago. This is very likely a fraud and a scam.  I fear how much money they have already potentially gathered.
13
ChrisCDChrisCD66 posts since
Nov 18, 2010
Rep Points: 409
1. Thursday, May 30, 2013 - 10:25 AM
Thanks for the warning, Chris.  As usual, if it's too good to be true it's smart to be careful, although in this case as you say the rates are not high enough to be a huge red flag. 
8
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
2. Thursday, May 30, 2013 - 2:28 PM
Of course it's a scam.  Metrox are not even listed as a tenant in the building they show as their location on their web site:  3530 Wilshire Blvd. Los Angeles, CA 90010.
11
ShorebreakShorebreak2,377 posts since
Apr 6, 2010
Rep Points: 12,694
3. Thursday, May 30, 2013 - 4:09 PM
FINRA (Financial Industry Regulatory Authority) is the largest independent regulator for all securities firms doing business in the United States.

Their website www.finra.org describes their chief role as that of protecting investors by maintaining the fairness of the U.S. capital markets.  The site has many interesting features, including educational information and more to the point of this thread, a free tool called BrokerCheck which:
can help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers, as well as investment adviser firms and representatives. It should be the first resource investors turn to when choosing whether to do business or continue to do business with a particular firm or individual.

The Broker Check tool can be run by individual/firm name, CRD or SEC number, or by zip code. 
11
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
4. Friday, May 31, 2013 - 8:08 AM
The FINRA scam meter can also be a helpful tool to determine if an "opportunity" might be a scam in disguise.  Although the tool issues "red flag" warnings as appropriate based on the answers, the final decision of course rests with the consumer.  
8
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
5. Tuesday, July 30, 2013 - 2:43 PM
My client in FLorida has loss $218,000 wired to Mr. Gordon on 6-10-13
2
arthurhernandezarthurhernandez1 posts since
Jul 30, 2013
Rep Points: 2
6. Tuesday, July 30, 2013 - 3:08 PM
It is sad to see the site still operating.  I would recommend calling the SIPC and file a complaint.  They still claim to be members of the SIPC.  Also have your client call Metrox and prove they actually have a CD with an FDIC insured bank.  Metrox should have a safekeeping receipt from the underlying bank that can be tracked to your client's account at Metrox.  Metrox should have provided your client a safekeeping receipt as well.

Please report back to us with your findings.

cd :O)
1
ChrisCDChrisCD66 posts since
Nov 18, 2010
Rep Points: 409
7. Tuesday, July 30, 2013 - 4:05 PM
Chris:  This part would have done it for me : "They claim your account is held with Chase Bank and is invested in banks in other countries."   My money has to stay close to home in the US.  I don't care if Chase is involved in any way, I would not go with any deal involving "other countries".  Just a quirk with me but that's how I am.
2
paoli2paoli21,146 posts since
Aug 10, 2011
Rep Points: 5,113
8. Tuesday, July 30, 2013 - 4:13 PM
Just a quirk with me but that's how I am.

Not a bad quirk to have.  Although, there are some legitamately FDIC insured foreign banks such as State Bank of India NY, Doral Bank, and FirstBank Puerto Rico, I can certainly understand people's hestiancy.  And of course in this case, your quirk would have saved you.
1
ChrisCDChrisCD66 posts since
Nov 18, 2010
Rep Points: 409
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