Mansour Tawafi is a Ponzi scammer who runs Validus, a multi-level marketing platform which promises the world to people but has nothing to back up the claims.
He is an experienced MLM scammer who used to run the AuLives scam in 2021. That venture collapsed after failing to get enough investors. However, he used the affiliate data of that MLM scam to launch a new one called Validus.
The Financial Services and Markets Authority has issued a warning against Mansour Tawafi’s Validus. According to the issued warning, the platform is situated abroad and is selling training in Belgium intended to teach people about trading in complex financial instruments.
The FSMA says that anybody who signs up for their training will get access to instructional videos, webinars and live chat sessions. Moreover, Validus will instruct clients on how to trade forex derivatives, what they are, and what kind of orders they can place.
The regulator noted that Mansour Tawafi and his firm spread the message that forex trading has many opportunities if you have studied the market thoroughly.
However, the FSMA is concerned about the quality of these courses.
In the Validus warning, the FSMA highlights that the distribution of derivative instruments traded on an electronic trading system and involving leverage is banned in Belgium.
Moreover, companies usually spread such training material through a pyramid structure. The regulator points out that these companies are called MLM schemes where they incentivize customers to bring in new members in exchange for some commission or discount.
In its warning, the FSMA highlights that MLM schemes like Validus remain active on social media through private groups and target young people. They spread the message that everyone can afford a luxurious lifestyle if they bring in enough new members and make the necessary investment.
The Belgian regulator highlights that the chance of loss is far greater with this scam. Their surveys have revealed that at least 75% to 89% of investments in derivative products (like forex derivatives) result in loss.
Hence, the regulator warns against doing business with Mansour Tawafi and Validus. It highlights that they are only suitable for people who wish to speculate and are ready to lose their entire investment.
According to the FSMA, there have been many cases of fraud with these instruments as well.
Beware of Validus.