5 Star Signals issued non-compliance fine by AMF
You dump money into a scheme and in exchange receive a passive ROI?
That’s a security and, if your scheme is not registered with the appropriate regulators, soliciting such investment constitutes an unregistered securities offering.
The Netherlands Authority for the Financial Markets are responsible for
supervising the operation of the financial markets since 1 March 2002.
This means that AFM supervises the conduct of the entire financial market sector: savings, investment, insurance and loans.
On the 2nd of November, 2015, the AMF began fining 5 Star Signals.
5 Star Signals’ business model sees the scheme solicit investments of $500 or more, on the promise of passive Forex ROIs.
On the backend 5 Star Signals affiliates are also paid to recruit new investors into the scheme.
This has landed the company in hot water with the AMF, who are accusing 5 Star Signals of offering ‘shareholdings in a collective investment company without holding a licence‘.
5 Star offers participants the possibility via its Irish subsidiary to open what is known as a “percentage allocated money management” account.
The account is linked to what is known as a master account in which transactions are performed and which is used to generate profit for the participant’s account.
The AFM suspects that this involves offering shareholdings in a collective investment company. According to the Financial Supervision Act, this is not allowed without an AFM licence.
In other words, 5 Star Signals are not registered to offer securities in the Netherlands.
As part of their investigation into 5 Star Signals, the AMF requested from the scheme ‘a description of the activities, participant data, an organisation chart, information material, an annual report and account statements‘.
Not surprisingly 5 Star Signals has thus far failed to respond. As of November 2nd, the AMF claims they have ‘still not received the (requested) information‘.
This has prompted the AMF to issue an ongoing fine against the company, back dated to October 23rd.
The incremental penalty payments increase by €5,000 for every day 5 Star fails to comply with the order for incremental penalty payments, subject to a maximum of €50,000.
5 Star Signals CEO, Mariska van de Langenberg, is based out of Amsterdam in the Netherlands.
As at the time of publication, there is no suggestion the requested information has been provided on either the AMF or 5 Star Signals websites.
cease and desist order. The full 11 pages. English translation.
Thanks for that. Looks like a pretty standard regulatory request for information.
Gee, I wonder why 5SS haven’t responded…
the AMF sent two letters to the registered address of 5 star signals in Hertogenbosch near amsterdam. the first letter was received by a signature, but it appears that the second letter was not acknowledged.
the AFM then called the 5SS office over the phone but the call was not received.
has mariska langenberg shut down the 5SS office in Hertogenbosch, if one ever existed in the first place?
on their FB page, 5SS and langenberg continue as though nothing has happened. they talk about how ‘compliant’ 5SS is, but fail to mention they have no license to operate in the netherlands.
whats to stop langenberg from pulling a page from ruja ignatova of onecoin, and ceasing or shifting out all investor accounts in netherlands? the world is large enough even without the netherlands after all!
also, craig walters is pulling down his FB page, and has reappeared in his real persona of dean black, so that he can continue the 5SS scam more ‘honestly’.
What makes me smile about all this. Mariska ia always posting on Facebook, slagging other programs, about how dishonest, ponzi and scammy they are.
Coming over all holier than thou, and yet they are full of lies and deceit themselves over at 5SS.
A big big fail IMHO. I would never trust them with a single Dollar of my money.
Hi, I have been made aware that Dean Black of 5 star signals has been telling his members that this issue with the AFM has been resolved and that 5 star signals is in talks and ‘dealing’ with it.
However, I have just called the AFM on their freephone number provided, and anyone else can do the same.
The AFM confirmed to me that the cease and desist order is still outstanding and no attempt has been made by 5 Star signals to contact them or resolve this matter.
I do hope that this fact sends some concern to the members who may wish to maybe start drawing their money out before further action is taken by the AFM.
Please do contact them yourselves on the freephone number provided 0800-5400 540
Who else thinks this is that Emily girl being salty because 5Star posted about her being the one that she had the idea for the Marie thing?
(Ozedit: content that ignores unregistered securities offering issue removed)
Whoever it is, they are dimwitted.
It does not matter to what extent any regulatory agency takes any action against a company using brokers partner powered PAMMs, the clients are non affected.
How are the AMF going to take action on individual investors, with personal brokerage accounts none of which are even under the AMF jurisdiction?
The worse case scenario is 5Star stops trading and the investors cash out their profits.
From observing the 5Stars community and audited results this would be disappointing for the investors, they are doing well but no one would lose any money.
Salty scaremongering, or maybe just very stupid.
Money goes into 5SS, with an attached passive ROI constituting a securities offering.
5SS are not registered with the SEC or any other securities regulator that I’m aware of.
Who they “partner” with is irrelevant, securities fraud is the issue here. You can’t run unregistered investment schemes and hope to get away with it indefinitely.
It seems this is still to be determined at this point but it was not the point I was making.
I said that the 5Star members have no monetary risk. I am glad you do not dispute that.
What’s there to determine?
Money is invested in 5SS on the promise of a passive ROI. That’s a securities offering.
Hello Dean Black, is that you? We’ve seen this behavior before.
In the face of a unregistered securities offering, anything else is irrelevant.
So it’s guaranteed ROIs now is it? Oh dear…
No reference to ROI was made. I only said that trouble for 5Star would not be trouble for the investors since they hold individual accounts and it is not held with 5Star.
I will not attempt to conduct an adult conversation with someone who just twists words.
Good day Sir.
Investors are paid a ROI.
Your pseudo-compliance efforts are wasted here.
No worries, best of luck with the scamming.
AMF investigation has found this companies activities to be fully legal and compliant.
Is now, always has been.
The outcome of this investigation has proven every speculation you made in the initial posting on this company to be wrong.
There is nothing on the AMF website other than the notice 5 Star Signals was fined last October.
Seeing as you yourself provided no proof of your claim, one can only conclude you are full of shit.