Citizens' Issues
MLM company MAXFOREX alters name and website without informing its ‘investors’

MLM company MAXFOREX has changed its name and website to ‘Dream Worldwide’, leaving many of its 'investors' high and dry

In May, Moneylife had reported on how a multi-level marketing (MLM) company was offering 'trading' in foreign exchange through a high-risk investment module.
(See: http://www.moneylife.in/article/8/5289.html).

Maximus Trades Inc (MAXFOREX), a Mauritius-based company, has now closed down its earlier website and opened a business under a new name, 'Dream Worldwide Inc'. The 'investors' who have been duped are now planning to join hands to nail the company.

All the details that MAXFOREX carried on its earlier site (maxforexonline.biz) have been replicated on the new site (dreamworldwide.biz). However, in its new avatar, the company is claiming that it trades in real estate and diamonds - besides forex. All the information that was there on the erstwhile MAXFOREX site - founders, offices and the business model - are the same. Just the moniker has changed.

What could have forced the company to change its name and website all of a sudden? There has been an upsurge in complaints about MAXFOREX all over the Internet, as well as the reports that Moneylife has carried. Even 419scam.org, the site that tracks spam and scams on the Internet, has labelled MAXFOREX as a Ponzi scheme and provided the MLM company's bank account details. According to the website, MAXFOREX had an account (28037304495) with Barclays Bank at Mauritius under the name of Maximus Trade Incorporation.

For both maxforexonline.biz and dreamworldwide.biz, the domain registrar is Ranger Registration (Madeira) LLC. Even the status of both the sites on Who.is is the same - "clientDeleteProhibited, clientRenewProhibited, clientTransferProhibited, clientUpdateProhibited" is what the site throws up.

Another company, Royal Forex Trading Ltd, which claims to offer trading in forex and commodities, has now surfaced. Royal Forex plans to focus only on the US and India. It claims to offer 1% return per day on an 'investment' of $20 to $99 for 200 working days. The higher your 'investment', the more will be your returns (3.5% per day for a plan of $2,000 to $10,000 for 60 working days). In addition, it also offers 'rewards' (mobile phones, cars) on business worth $5,000 and above. However, it also fails to specify or clarify how it manages to offer such returns.

User

COMMENTS

GOVINDAN

6 years ago

Speak Asia, Nano Excel, Tycoon International, Visarev & Unipay2u – biggest scam is on its way

GOVINDAN

6 years ago

'NANO EXCEL' MLM WILL SOON FOLLOW MAX FOREX MLM

MATHU

6 years ago

FOR,DETAILS

manoj sharma

6 years ago

i'm looking which s best investment ?

shakil

7 years ago

maxforexonline.im.invest.1LACK..SITE.IS.NOT.OPEN.KAB.OPEN.HOGI

sandip kumar pradhan

7 years ago

please send latest position of the maxforexonline.biz

Hira Nand Pandey

7 years ago

Maxforex should transfer their old accounts on its new website. This will be in the favour of the company to work more in future. Now maxforex has earned more money from this business. This is not good for its future planing. Is there any way to get the money back from maxforex ?. Maxforex should repply their all customers on their website address.

messanger

7 years ago

unitedfund.biz its working new maxforexonline.biz site for india

REPLY

anshveer

In Reply to messanger 7 years ago

when this site unitedfund.biz will be in operation. please reply about this.

Ashwani Kumar

In Reply to messanger 7 years ago

Please reply me how many days to work on http://www.unitedfund.biz

Dinesh

In Reply to messanger 7 years ago

It doesn't open

Pls clearify,,

pramod gaur

7 years ago

could u pls tell me about speakasiaonline.com current status

REPLY

DEEPAK

In Reply to pramod gaur 7 years ago

speakasia is a largest survey compeny.it is honest copeny they giveyou money only your work'what's your mobile no?/////////////////////

Dinesh Singh

7 years ago

Pls tell from when the MAXFOREX will start working....

REPLY

santosh

In Reply to Dinesh Singh 7 years ago

All of you peoples invested with this company Please be patient and wait till the end of your life to start MAXFOREX working again....

PRAMOD GAUR

7 years ago

i can not understand what is happened with side

sukhjeet singh

7 years ago

max chala ge
sandhu 32 m.l

REPLY

saurabh

In Reply to sukhjeet singh 7 years ago

kya chalega max kab

monika

7 years ago

plz tell me wht happend wth maxforex and how much tme towork start

REPLY

Ashwani Kumar

In Reply to monika 7 years ago

Hello Monika, someone said, http://www.unitedfund.biz is new site of maxforexonline.biz. Have u any news plz. tell me. Thanx & Regards

ankit

7 years ago

maxforexonline.biz website is not open,why?

Ashwani Kumar

7 years ago

I don't know what happened in maxforexonline.biz. But site name is change now new name is dreamworldwide.biz. Before 2-3 days, I open new site but now new site is not opened. If u have any information plz. write me. Thanx

India to press for resolution of currency war at G20 meet

Gyeongju (South Korea): India is likely to press for intensive engagement to amicably resolve the currency war, mainly between the US dollar and Chinese yuan, at the two-day meeting of the Group of Twenty (G-20) finance ministers and central bank governors beginning here tomorrow, reports PTI.

Finance minister Pranab Mukherjee, who is heading the Indian delegation to the ministerial meeting, will also hold separate consultations with the finance ministers of other BRIC nations, namely Brazil, Russia and China, on wide-ranging global economic issues, sources said.

Mr Mukherjee had earlier said, "My approach is that we should try to engage the countries into negotiations and build up a consensus through which the matter (concerning currency war) could be resolved."

He had also stressed that such issues "cannot be resolved through confrontation... and we should engage in the process of building up consensus."

While the US wants China to allow the yuan to appreciate in line with market forces, the Chinese government is resisting the move, as it would hurt the country's exports.

The currency war has prompted some other countries, especially Japan, to weaken their currencies by pumping more funds into the market.

India, which has witnessed about 5.5% appreciation of the rupee against the dollar since January, has not taken a stand on the issue and wants the matter to be sorted out without confrontation in the interest of global financial stability.

Meanwhile, a US official said in Washington that when large economies with undervalued exchange rates act to keep their currencies from appreciating, it compels other countries to do the same, setting off dynamic of competitive non- appreciation.

"It's bad for the system and it's bad for all of us. It imposes an unfair burden of adjustment on other emerging markets that are running more flexible exchange rate regimes," he added.

In addition to currency war, the G-20, which is a club of developed and emerging economies, will also deliberate on issues like quota reforms in the International Monetary Fund (IMF), protectionism, the global economic situation and a framework for strong, sustainable and balanced growth.

The ministerial meeting will be followed by G-20 summit to be held on 11-12 November at Seoul, which is likely to be attended by global leaders including Indian prime minister Manmohan Singh, among others.

US president Barack Obama, who will visit India in early November, is also expected to attend the G-20 Summit, which is being held in an Asian country for the first time.

As far as the currency crisis is concerned, World Bank president Robert Zoellick, at the recently concluded Fund-Bank meeting in Washington, had cautioned that such tensions could lead to trouble if not properly managed.

"Today, we face currency tensions. Tensions can lead to trouble if not properly managed," he had opined.

"One should take this situation for granted, because my primary message is that we are still in a very fragile recovery and people have to be careful about some of the downside risks," the World Bank chief had said.
 

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Aditya Birla Money: A saga of wrong bets, losses and damage control

Brokerage firm Aditya Birla Money’s fancy scheme for the rich incurred heavy losses amid wrong bets. It has required intervention from the very top to set things right 

In the high stakes game of wealth management, where revenue generation usually takes precedence over client welfare, all it takes is a few overzealous people to run a portfolio to the ground. Aditya Birla Money, a financial services firm, discovered this the hard way recently, when a fancy scheme tailored for individuals with deep pockets ran into heavy losses apparently due to wrong and slipshod bets. However, Moneylife learns through informed sources that Kumar Mangalam Birla personally intervened to ensure there were no losses to the investors.

The scheme, Options Maxima, involved trading in equity options where fund managers either short sold Nifty and bought options or did it the other way, a person familiar with the development told Moneylife. The scheme promised returns of around 1%-1.5% every month based on the arbitrage opportunities through this activity, which ensured what was considered a very fair 12%-15% return annually. The managers, however, made wrong calls on the movement of the index and stocks.

Narrating this incident, our source told us, "They (Aditya Birla Money) used to run something called Options Maxima involving covered calls where one short sells Nifty and buys options or the other way around, whereby there is a small arbitrage opportunity. Every month it offered 1%-1.5%, translating into annual returns of 12%-15%. It was aggressively marketed as a risk-free investment in various presentations. Suddenly in September when the market went up this manager based out of Chennai short sold Nifty and bought options, resulting in a huge loss."

The resulting losses supposedly amounting to a sizeable sum of nearly Rs100 crore caused panic in the company. Sources say that Kumar Mangalam Birla personally inspected the books of the company at its office and was there very late into the night. We have learnt that the Birla group has written cheques to make good the losses through a private group entity. But such a blunder could not go unpunished. The buck had stopped at Kanwar Vivek, managing director of Aditya Birla Money, who apparently put in his papers. Pankaj Razdan, deputy chief executive, financial services, Aditya Birla Group had roped in Mr Vivek a while ago. We have now learnt that this incident has also put Mr Razdan under considerable pressure. However, company sources deny any talks of him leaving the company.

An Aditya Birla Group spokesperson declined to reveal more details regarding this sensitive issue as the listed company is slated to come out with its quarterly performance figures early next week. However he did mention that most of the reports in the media were purely speculation, including the estimates of the loss incurred by the scheme. "As a company policy, we do not comment on speculation," said the spokesperson.

At a time when the group is intent on making significant strides in several of its new-generation businesses, Mr Birla would surely like to put this incident behind him. Financial services forms a big part of the group's plans and has contributed 37% to the FY 2009-10 consolidated revenue of Aditya Birla Nuvo, the holding company. Mr Birla is infusing more cash into businesses like financial services and telecom through Nuvo and enhancing his own stake in the process. Aditya Birla Financial Services is, in fact, intent on launching banking services provided the Reserve Bank of India (RBI) gives it a banking license.
 

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COMMENTS

Subrahmanyam

6 years ago

Not recommend in investment in shares in Adityabirla money. You loose hard earned money by investment, the marketing persons are giving false promises on invesment of Rs.25k and you get Rs.4k in every month. Practically you never get and dont fall in trap and tell your circle not to invest in AB money.

REPLY

ramkishan sonthalia

In Reply to Subrahmanyam 6 years ago

I think this was a scam almost similar to the Citibank. Please give your comment.

ramkishan sonthalia

7 years ago

If such type of irregularities are noticed, who will give them a banking liacence is a big question. Same incidence may happen again, who konws.

kishore

7 years ago

ANOTHER RS. 100 CRS LOSS IN THE MAKING BY ADITYA BIRLA MONEY

Buy LIC Housing Finance, target Rs 1426: Aditya Birla Money has recommended a `Buy` on LIC Housing Finance with a price target of Rs 1426 in its report dated Nov. 24th, 2010.

LIC HOUSING FELL MORE THAN 20% ON THE SAME DAY. AS A CLIENT, I LOST MY MONEY BECAUSE OF VIVEK MAHAJAN RECOMMENDATION.

Dev singh

7 years ago

if company goes by recommendation this is what will happen. Mr. Pankaj razdan ( ex ICICI) referring Mr. Vivek Kanwar (ex ICICI). Mr. Kanwar referring his close associate Mr. Vivek Mahajan. His recent recommendations on Eros media and GPIL made people lose in crores. Would we also be refunded ???

ashok L Surana

7 years ago

whether this is exactly front running by fund manager and whether this is a genuine loss or fabricated loss to pass on gain to someone.this needs to be checked by sebi messiah of investor

REPLY

ramkishan sonthalia

In Reply to ashok L Surana 7 years ago

I also have the same doubt as Mr Surana has in his comments. My suggestion would be for full invstigation in the matter.may be the scheme was launched for the benefit of birla executives only. who knows?

pushkar

In Reply to ramkishan sonthalia 7 years ago

Aditya birla nuvo(parent company of Aditya Birla Money ltd) took this loss made by the acts of 2 individuals in its 2Q sep 2010 results.

These 2 individuals Mr. Vivek Mahajan and Mr. Kanwar vivek were not selected by any selection process. As the above news article says by referrals they were choosen with no real merits.

Aditya Birla group is known for its business ethics. So they have made good the losses. But Mr. Vivek Mahajan's recommendations day in and day are causing crores of losses to many innocent investors. The recommendations given by him in media is given with no fundamental research but by just toss of a coin. Again one cannot blame him. Its like asking a door painter to draw a beautiful painting !

There are small shareholders and investors losing money because of irresponsible acts of uncalibered individuals. Thousands of individuals through their hard earned moeny fund a company's growth by getting the company's shares listed. By certain professionals like Mr. vivek mahajan and Mr. kanwar vivek only help in ruining the company.

With less than 3 months of joining Mr. vivek mahajan helped the company make Rs. 100 crs loss. May be company is waiting for him to make Rs. 1000 crs loss !!!

ram kishan sonthalia

In Reply to pushkar 7 years ago

Agree with all of your views but how will bell the cat.

chaitanya

7 years ago

Mr. Vivek mahajan of aditya birla money ltd was recently hired to oversee the operations of options maxima of aditya birla money ltd. But in his style he overlooked the operations causing Rs. 100 Crs loss to the company. The press releases when he joined says he has rich experience. But definitely he became rich after joining this company. Mr. Vivek kanwar who hired him unfortunately has to take responsibility and left the company.

shirish

7 years ago

Mr. Vivek mahajan caused Rs. 100 Crs to aditya birla money Ltd. he expected market to consolidate. But market gave a bull run. He short the market heavily in options maxima scheme.

REPLY

ramkishan sonthalia

In Reply to shirish 7 years ago

Is there any legal procedure to be followed against such person/company?

hebe

7 years ago

who is this kanwar vivek? He is the expelled Managing Director of Aditya Birla Money Ltd. He is close associate of Mr. Pankaj Razdan (CEO of Aditya birla financial services). Kanwar vivek gets Rs. 5 crs as salary. Under his very efficient leadership not only did Birla Sun Life Distribution Ltd ( now Aditya Birla Money Mart Ltd) kept making losses, but its partner Sunlife also withdrew its partnership as there was no turnaround. This person appointed another person vivek mahajan for a salary of Rs. 2 Crs. Both of them paid this hefty salary to make this much loss to the company is it? Why doesnt Aditya Birla Money Ltd recruit people of good caliber? A costly mistake by the company board.

Ravi M

7 years ago

I am one of the unfortunate investor of this scheme. Surely, this scheme was wrongly sold, as stated in the article.
However, the manager (employee of AB Money) who sold me this scheme, refused to give any compensation for losses over 25%. Well, I have exited form the scheme.

Can we trust a company like AB Money - that is owned by person like Aditya Birla ???

ramkishan sonthalia

7 years ago

good coverage. may be the scheme was launched for the benefit of birla executives only. who knows?

Narendra Doshi

7 years ago

Congrats Moneylife Digital Team for this report, so fast, so soon.
Also, kudos to Aditya Kumar Birla for his personal touch & action, again so fast, so soon, for being a responsible Head of his group & taking timely action , PERSONALLY, and accepting the eventual responsibility. Birla's action is worthy of being followed by several other business group operations.

ramchandran

7 years ago

Financial services recruitments need to be looked into seriously. You just cant go by people's resume , a proven track record & reputation is a must.

REPLY

praks

In Reply to ramchandran 7 years ago

Read this arcile

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