Freedom Rock Inc. Pyramid Scam
Hungary's financial market regulator PSzÃƒ?F on Monday said it reported Freedom Rocks Inc, a US-based distributor of software for forex trading, to the police on suspicion of organizing a pyramid scheme. PSzÃƒ?F said an investigation it carried out established that Freedom Rock's activities cannot be classified as investment services or the intermediation of such services, but it still warned potential clients of attached risks.PSzÃƒ?F warned that neither Freedom Rocks nor the brokerages it recommends fall under PSzÃƒ?F's regulatory powers. Neither are members of Hungary's National Deposit Protection Fund or Investment Protection Fund. Because they are all based abroad, legal recourse may not be taken in Hungary, PSzÃƒ?F added.Information distributed about Freedom Rocks puts special emphasis on network-building, namely recommending the company's products to other clients, while it fails to draw attention to the additional financial risks related to FX trading, PSzÃƒ?F said.
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