This academy would have tried to entice mainly young Luxembourgers to participate in a training program on the workings of the stock market in return for monthly payments. A very expensive program.
It’s a scourge that has spread like wildfire on the internet in recent years. Trade training scams are now rampant on the internet. People present themselves as successful traders, ready to share their knowledge with you for a “modest” reward. In reality, lured by the prospect of quick gains, individuals, often young people, participate in exercise programs that are as expensive as they are imaginative, as explained The BFM stock exchange. In fact, it is often a pyramid system where only those at the top of this pyramid, the leaders, therefore earn money.
Also read:Should we fear a financial crisis like in 2008 in Europe?
Have any of these many academies tried to recruit young Luxembourgers into their system? Hard to say for sure. Still, following complaints from concerned parents, the Grand Ducal Police conducted a police raid last Sunday in the Kirchberg district. A presentation gala of the so-called “IM Mastery Academy” was held there. The official website of this supposed academy explains that it offers training to gain a mastery of the financial markets, to accelerate the growth of its business or to develop effective marketing strategies. Everything is far from free, count almost $250 in subscription every four weeks, as well as almost $275 in registration fees with this company based in New York, according to the official website.
Conferences around the world
To promote their training, “IM Mastery Academy” regularly organizes conferences around the world. On 29 May they were therefore in Luxembourg. Nevertheless, the presentation was cut short due to police intervention. We learn that the police were accompanied in particular by members of the judicial police, but also from the Eco/Fin department.
Also read:37 bankers have earned more than one million euros in 2021
According to initial information, the entity in question would have tried to entice mainly young high school students to return to this academy. “With harmful consequences for young people, some of whom even drop out of school in the hope of making easy money”, clarifies the Grand Ducal Police in its report.
Thus we learn that the officials on the spot were arrested and interrogated, and an investigation into, among other things, the lack of a business license was triggered. The prosecution was informed and the seizure of documents was ordered. The investigation continues.
Also read:The fall of cryptocurrencies
In addition, the Commission de Surveillance du Secteur Financier (CSSF) issued a warning to the company a few days before the start of the event. “The company International Markets Live Inc targets a young audience in Luxembourg and mainly advertises on social networks. The argument used always remains the same, making easy money in the financial markets by following their different formations,” she already explained, warning against the May 29 event.
A company unknown to CSSF
The latter also explained that the academy’s parent company, called “International Markets Live Inc”, was unknown to the CSSF and had “no authorization to provide financial services in or from Luxembourg”. A warning that probably ended up convincing the police to intervene on the day of the incident.
Tips to protect yourself from this type of practice
The Grand Ducal Police would like to give some general advice about these companies that promise mountains and wonders, as well as about the risks associated with investments without specific knowledge.
This asks people who are potentially interested to fundamentally question business models that advertise with the promise of making money easily and quickly, but also to always check whether the listed company exists or may have done so.
“In general, you should be skeptical when individuals contact you out of the blue or through posts on social media to introduce you to business models or opportunities, respectively investment tools. Be aware that trading in Forex products (currencies) and “contracts for difference” (CSD) entails significant risks”, the police remind.
Also remember that such investments can always mean a loss of the invested money. Only invest in companies or companies that you are sure are serious business models. Do not act too quickly: promises of big gains should always be analyzed thoroughly with the necessary knowledge.