Exential Group – Managed Forex Accounts Scam

By | April 7, 2015

Update 03/01/2017

The perpetrator behind this Ponzi scheme, an individual called Sydney Lemos, has been arrested.

Update 24/10/2016

I was informed that a class action lawsuit against Exential is being prepared by the Giambrone law firm. All people interested should visit this page.

Update 25/07/2016

More than a year since this article was written, authorities have finally shut down the fraudulent operations of Exential Group. From Leaprate.com: Exential Group in Dubai Media City was ordered to cease trading on Sunday as the Department of Economic Development (DED) investigates complaints by clients that due payments had dried up.

Our managed forex accounts use short-term trends following methodologies to deliver exceptional profitability. Our specialised trading technology achieves average annual returns in excess of 100%with drawdown never exceeding 0.5% per transaction since inception in 2011. – Exential Group Advantage

If this sounds appealing and you have at least $20.000 – their minimum – to ‘invest’ with Exential Group, then you should read on before parting with your money. This company ticks off all the boxes of a classic managed accounts scam:

  • it’s a faceless, nameless entity. Who is the owner ? Who are the traders, what credentials and experience do they have ? Who authorizes them to trade other people’s money ? No legitimate company would hide this kind of information
  • the returns they supposedly achieve don’t resemble the distribution you’d normally expect from a trading account with 4 years history. For each month since January 2011 the  returns advertised vary between a low of +7% and a high of 11.4%. This easily makes the traders capable of achieving such lofty and consistent results the best in the world. Why haven’t we heard from them ? Why aren’t their names splashed on the front covers of magazines ? Because these are just numbers pulled out of thin air which couldn’t withstand any kind of scrutiny.
  • third party verified results are in stark contrast to those advertised, with losses around ~50% in just a few days. The period covered is under one year, as opposed to the unverified four years of excellent results advertised.
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Myfxbook screenshot

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Myfxbook screenshot 1

  • the strategy used, booking small profits and letting losing positions open in the hope they’ll come back is a recipe for disaster and a clear sign of their lack of expertise in trading
  • they work with an unknown, opaque, offshore registered broker, FCI Markets, which raises doubts that the same persons are behind both these entities.

When presented with the above information, there are two things a person initially convinced by Exential Group’s advertising could do: 1. realize that it’s a scam and run in the opposite direction

2. say something like: ‘you can’t be right, I know or read of so and so who have been with them for some time and they made money’. This was the usual answer too when victims of Bernie Madoff were warned before his Ponzi scheme collapsed. It’s just the typical way a scam operates: some people have to make money in order to spread the word and allay fears of those who are a little bit more skeptic.

To conclude: don’t spend your money just because you like what you see and hear. Talk is cheap. Watch The Wolf of Wall Street movie if you need a reminder of that. Thoroughly check the facts before parting with your hard earned cash.

267 thoughts on “Exential Group – Managed Forex Accounts Scam

  1. Brian

    Article in the UAE National Newspaper yesterday:

    Investors tell of worry as bogus Dubai ‘ponzi scheme’ payouts dry up

    March 19, 2016

    DUBAI // The net is tightening around rogue investment schemes in Dubai that have been milking hundreds of thousands of dirhams out of low-income workers who were duped with promises of big returns.

    Investors who have pumped tens of thousands of US dollars into such “Ponzi” schemes claimed they were facing financial ruin and have reported matters to Dubai courts.

    Financial advisers aired concerns in an article in The National in January following a growing demand for investments in foreign exchange funds they said were offering profits that were too good to be true.

    That is proving to be the case, with investors claiming that they are owed thousands and that have not been paid since November.

    Bogus traders lured investors with the promise of 110 per cent returns on foreign exchange markets, but are suspected of simply redistributing funds from new investors – a Ponzi scheme.

    Jennifer, a 26-year-old Filipina who works for a cleaning company in Dubai, invested US$50,000 (Dh183,647) – almost 20 times her monthly wage.

    With three of her friends, they invested $25,000 each with one investment group in Dubai in May last year, while she alone invested another $25,000 elsewhere. “For the first five months, they paid out after 15 working days and were never late,” she said.

    “After November, things slowed down and we stopped getting paid. We had a relationship manager who said a problem with international banking was causing delays.

    “I invested my savings and, like my friends, I’ve taken a bank loan to invest this money.”

    Net profits each month would range from between $1,700 and $2,100 and were achieved by trading in foreign currencies, according to the relationship managers.

    Investors could not view live trading information, but were given retrospective access to trading performance.

    One investor said: “I started my investment with my broker in Media City in April last year. Money was good and trades and profits were conservative until December and January.

    “They have a policy in our written agreement that states that when you initiate your withdrawal on the first of the month, you will receive the transfer after 15 working days.

    “For two months in a row, they failed to fulfil this policy, and I have started to doubt their credibility. They said the delay would either be the holidays either here in UAE and where their bank is in Australia, or because of banking limitations.”

    Financial advisers said that the scams have been widespread for years in Dubai and that investors risked losing everything should the funding for the schemes collapse.

    Those found breaking the law can be hit with a three-year jail term and fines of up to Dh30,000.

    One company advertising services as a foreign currency trader does supply documents to interested investors and a Department of Economic Development licence is clearly displayed on its literature. This allows it to trade in investment in commercial enterprises and management, but the company has no licence to perform as a trader.

    Other documents showed phone numbers that were either out of service or went unanswered.

    The UAE bans anyone from opening companies without a licence, but rogue operators continue to break the law, according to Yousef Al Bahar, a lawyer from Al Bahar and Associates who said investors were targeted on social media.

    “Customers have to ask about the company with authorities to double-check their licence and what activities they are authorised to carry out.

    “Customers who are scammed must report these companies to police and submit evidence.”

    Dubai Police said that such complaints should be addressed to the anti-economic crimes department on 800 800243, or email: cdi.cideconcrimes@dubai.gov.ae.

    http://www.thenational.ae/uae/investors-tell-of-worry-as-bogus-dubai-ponzi-scheme-payouts-dry-up

    1. Angry_bird

      Tried calling the number unfortunately it is not in service.
      I guess directly calling the police or going to the police for filing a case would do a better job. I’m on my way there tomorrow morning.

  2. KecyInvestor

    Thanks Brian and to the National for directing us to the right Authorities.

  3. Richard

    Also sent a complaint to cdi.cideconcrimes@dubai.gov.ae.

    We have a remote chance of getting something back at least.

    The longer you wait the less chance of retaining your capital. Good luck everyone. Stay away from get rich quick/ponzi schemes. A small percentage profit – the majority lose out. Do not be the next victim….

    1. KecyInvestor

      Was wondering why it had failed two times was just about to call the national.
      Thanks again Richard.

  4. Angry_bird

    I also sent a complaint and did not receive a returned message perhaps your email is too big in size?
    Try to keep it within 5MB.
    It looks like mine went through.
    I’m going to legal advice tomorrow as well including the police. These guys change terms of contracts like a game! Yesterday -20 days, today -6 months, tomorrow you will wake up to your money gone forever. Don’t wait. Seize this filthy trash and don’t let any of these fishy indians buy you with offers for more money! You just get more of bulshit !!!

  5. Super human

    You guys are your own worst enemy ! You think if you file a case they are just going to hand over a briefcase full of cash. Instead, all accounts will be frozen for months, trading will stop, nobody will get paid, they will go bankrupt and we will all lose our money all because some people can’t handle a wait! Is this what you are trying to achieve ? Luckily for us who are still investors and still in it for the long haul, they are covered legally to amend the contract with regards to capital release and I’m sure they can afford the best legal team money can buy! Our money is safe and the patient ones will soon reap the rewards of our patience!

    1. SilentSpectator

      Super human: I think you just described what’s currently happening with Exential. Accounts frozen, trading not really happening(except for the dummy account), nobody getting paid, going bankrupt because withdrawals are now greater than deposits and people will likely kose money because this is probably a ponzi scheme.

      At least with the authorities watching, they’ll have more difficulty running away with the people’s money. There’s nothing to lose anymore since the moment they stopped paying out.

    2. TiKtAk

      Inevstors are just simply asking the return of capital or profit. EG has not experienced any lost in its entire operation which simply means they have the money intact. So why they are still waiting to be sued? Just give back the capital or distribute the profit and that would be it. Ah I forget..they have banking issues..

      Probably, court order would find a way to resolve their banking issues to disbursed capital/profit in UAE at the very least if banking issue is true…

  6. Angry_bird

    Everybody to their own! People hve different reasons to request their own money to be returned within stipulated terms! Failure to do so means something very fishy. if there is fear of losing your money because of informing the authorities, well then it’s deinitely fishy!

    1. SilentSpectator

      Where’s the like button? I need to like this comment.

    2. Super Human

      It doesn’t mean something fishy necessarily, it just means that any company under investigation, with accounts frozen will have a tough time to remain above water. Legitimate or not. Therefore some investors fear might be justified!

      1. MM

        You contradict yourself buddy. You believe they are legit, and yet you fear that their account might be frozen during investigation and that they may have tough time to remain above water? I believe that you also smell something, you just dont know that its a fish smell :) Get out of the denial stage and just look at the logic. If they are legit, they wouldnt have problems in defending themselves, thus, their account will not be frozen for long. Oh, actually, if they are legit, they would not have problems in fulfilling their contractual obligations in the first place. :)

  7. Angry_bird

    And this is why such companies must make sure the terms of contracts are kept! Such enforced re-investments of capital are just the last drop in the cup. Nobody has ever been bold to stand out and show some real evidence that this whole will work. Empty promises and nothing else.
    Let the authorities do what they’re ment to – give justice.

    1. KecyInvestor

      I seriously do not believe why people like super Human would believe that EG is paying out.We heard the bank issue was resolved in Feb but they gave another excuse that the reason why they are not paying the monthly profit was because they were paying people who had closed the account.

      when those who closed the account ask for the money…well it’s because they need to priotise them that are still client.They gave a timeline from March 15 to start paying,But wait a Minute!they just knew that was a promise they could not fulfill…so they sat in their meeting and thought the only way to get away with this is give them a bigger carrot….Just played on people’s greed and oh how it worked !!!!but wait a minute what will happen if we can’t start paying by April 15th.
      Dear Valued client’s
      Greetings from Exential!
      You all know our competitors have been busy and incited some clients to go to the police,please bear with us as the investigation is on-going and we can’t send profits as promised.

  8. The Equalizer

    Gentlemen

    what superhuman said might be correct.All banks have recently tightened their rules regarding money transfers incoming and outgoing from any account.What does it mean?If you periodically receive/send money to or from your account no matter if you are an individual or a company the bank will be asked by the central authority the reason for that.If you do not provide them the information they need they will freeze your account till the investigation will be over.It is in the money laundry rule that we all tick before making a money transfer.If this company sends every month thousands of bucks everywhere in the world including nations not really on the so called “good guys “side then an issue might arise.If all of you panic and start asking for money back do you think is going to work?If they got their accounts already frozen due to the above reason do you think that asking more money is going to help?
    honestly i do not work for them,is it a scam?Maybe!But if you planned your life based on an income which you can’t control well that’s another story.
    just my 2 cents

    1. B is for baloney

      It will work if they are really trading currencies because they have the money somewhere. It may be delayed, but eventually they will pay up.

      Now if they are a scam and don’t have the money anywhere, that’s another thing. At least they’ll get busted sooner and there will be less victims.

  9. Angry_bird

    Okay, question- why would a company of such reputation and good practices allow their accounts to be frozen?! Hehehe leave the answer to yourself. If these same accounts are frozen due to incorrect or missing transfer purposes then well, that’s a massive display of unprofessional attitude towards business. Back to the good reputation and practice??? Hahaha no excuses!

  10. Lost

    Hey Angry Bird, Did u file that complaint? Did anything com of it?

  11. MADELYN P. CENA

    Thanks God! I received my Capital last December 2015 for 1 month processing only….
    Good luck Guys!

  12. Dream Bubbles

    Sitting here laughing, as to how this whole thread developed and some people STILL believe they will see money?!
    It is crystal clear that this whole EG thing was a scam to start off with, but people’s greed…. creates blindness in some cases.
    Just google Sydney Lemos, for such a “high profile” personality, apart from FC Goa there’s nothing on the net, no pictures either.
    Doubt this guy even exists. Time to cut your losses and say goodbye to your hard earned money…..

  13. Super Human

    Bubbles , keep on thinking that!
    Im laughing just as hard as people like you that are trying to discredit this company and il be enjoying my profit even more next month knowing people like you wont.

    1. SilentSpectator

      It’s been 3 months since people last enjoyed their profits… Many can’t even enjoy the capital that they rightfully own.

  14. Legal Advisor

    Hi All,

    This is my first comment on this site for Exential – and for me this is completely scam – and people who are fighting for there hard money just for you guys- you should all file criminal case against them bez-

    1. Being a llc in Dubai you cannot take money from clients
    2. People who give cheque by the name of FCI brokers they can file case aganist them.
    3. Publish your stories in local news paper like Gulfnews and seek there help.
    4. Don’t be fool again and put your money again

    1. mohamed

      Its funny when the company starts to fix the delay that negative ppl come and start pouring fuel again,

      We don’t need your negative comments everyone has already created an idea what he is going to do

      1. atthetruth

        Exactly, its funny how all these “so called” legal advisors are now jumping on the scene to give ” legal advice”. The problems have been sorted and we will be getting our profits soon enough!

  15. TheFighter

    I’m in process of filing a case with dubai police and taking it further with dubai public persecution. If it a scam no one should enjoy our hard earned money. For the sake of all those who lost their life savings and to stop any future scams, all should consider legal advice and take it further with authorities. But before that you all should get good translator and translate all your documents into Arabic as police and courts will ask for translated docs.

    Good luck

    1. atthetruth

      Nobody has lost their life savings or in fact any money! FACT!
      There has only been a few months delay of profit payouts while the company has restructured!
      Just because there is a delay does not make an investment a scam, so why are throwing the word around if you dont have solid proof.
      Good luck file and enjoy filing your ignorant case with the courts and I look forward to hearing in 9 months time how you got your capital back but spent most of it on legal fess!
      In the meantime, from April onwards, the rest of us will be earning handsome profits.

    2. Weird_O

      Pls whatsapp me 0567899485. I would like to know more about what you did! Thank you!

    3. atthetruth

      So we have 1 review from a disgruntled ex employee who got fired, how surprising he has an axe to grind by writing a bad review!
      Give me a break..

  16. TheFighter

    atthetruth. All the best and I really wish u see April profits. I didn’t seek legal actions for fun. Only did it after many ignored calls and when visiting their office to see my RM I was sent up and down between floors O and 7 to be only told that 20 days is to be extended to 6 months and have to sign their notice contract. Really wish if you can visit their offices to see what I mean. By the way, if you fancy visiting management team they are located on ground floor away from upset investors. Please do let us know if you get any profits in April.

    1. B is for Baloney

      It is possible to get April profits. How?

      1) put all capital witdrawals on hold till next year
      2) collect new unsuspecting victims’ money
      3) distribute funds collected from unsuspecting victims as profits
      4) spread the word that profit payment has resumed to normalcy
      5) more unsuspecting victims sign-up
      6) the scam lives on

      Remember that scams only survive as long as there’s a healthy supply of victims that will exceed the number of withdrawals. If withdrawals are not honored, like what’s currently happening, the scam can go on as normal.

      Don’t be an accomplice not a victim and secure your money. If Exential lives on despite everyone RECIEVING their capital back, then they prove themselves not to be a scam. Otherwise, they are.

      1. mohamed

        Looks like the forum itself has attracted scammers and spams, if you don’t believe in it why have you invested in the first place, and if you think you have done a mistake Then do your homework because we will not do it for you
        Otherwise we heard enough of priceless talks and legal actions being taken only on forums

  17. Legal Advisor

    Guys who are giving comments in favor of Exential (doubts for them) or they are stupid –

    Exential – Mr. Syxxxxx
    FCI Market – Mr. Alpexxxxx
    I Must say good game played by them –

    Just open your eyes and take example from this- they breach there contract and people who is going to fight or ask for there capital there Relationship Managers are telling “yes sir we understand no problem you go and do case” just imagine how much they are confident that no one can do anything-

    I agree they offer to put money back and get your profit from April but this is sure? Is there any written proof?
    And Of course if they give in written would they follow?

    I am not putting any fuel just think all of you who invest in Exential
    1. Can you get your capital?
    2. Ok if you get profit which is equal to your capital but why you took it in installment? What is the sense to invest here?

  18. Legal Advisor

    And Mohammed – doing comments on any forum is very easy and you ask for legal action then my friend who will spend 10000-12000 for lawyer of course no one because people who invest here they are normal salary base who save or took loan from bank for better future –

    I have no interest in this forum because I am not Exential client so Leaving this forum-
    I am also just small salary person working for Financial company and was planing to invest

  19. KecyInvestor

    Has anyone tried to do some research on this S&S Brokerage House? I have been trying but there is nothing on the Google just keep saying they are updating their website.
    I have come to Accept that I might lose all my money and I need to prepare my self mentally for the loan payment.I just found one review on S&S brokerage .I know I might be categorized as the Negative ones by the EG team but the Handwriting is on the wall.
    https://www.glassdoor.com/Reviews/S-and-S-Brokerage-House-Reviews-E895786.htm

    1. atthetruth

      So we have 1 review from a disgruntled ex employee who got fired, how surprising he has an axe to grind by writing a bad review!
      Give me a break..

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