Is HugeROI.com Private Investment Club A Scam?

In April of 2008, we wrote about HugeROI and their plans in revamping the website and offering their own in-house investments to the members. A year later and the contents of their homepage has not changed, except for the announcement that the “new HugeROI is around the corner”.

If you missed it, the revamped website came online in early fall of 2008. HugeROI did offer some investments with incredible returns. Maybe you have seen this message from one of their founders, Clifton Alexander, in various investment forums.

From the desk of Clifton Alexander the investment guru.

Hi,

If you want a 100% real investment program registered in Tennessee and soon with the SEC, then this is it. You have a choice now, keep getting scammed or join a real investment club. It’s up to you.

We would like to introduce our profitable investment club which we have been working on for years.

We have two investment options available, conservative and aggressive.

Under the Conservative Option, we aim to produce 20% net profit every month
using an extremely conservative trading plan which aims to protect your
capital and take profit for the month once the profit target is met.

Under the Aggressive Option, we do not aim for a specific monthly target
and will execute our full trading plan monthly. The highest return on investment so far in one month is 313% which can be verified, Just ask us to show you.
You will receive more performance details when you visit our site.

HugeROI Inc. is located in the United States and registered in Tennessee (Reg# is available on our site), our traders are registered in New York and Singapore. Our trades are a hedge fund company specializing in private equity management and imparting of short term option swing trading knowledge through proprietary trading systems.

We even show you the trading charts of every stock option we choose and how we produced profits.
So if your tired of those so called “investment programs” closing down and running with your funds, join a real investment club and profit.

If you would like to see our past stock option results just contact us.

Thanks for your time,

Clifton Alexander
www.hugeroi.com

1877-HUGEROI
1877-484-3764
HugeROI Inc.
PO Box 9252
Memphis, TN 38190-0252

A few months after opening the site up for investors, an announcement was made that the business would be under new management. (We have yet to see any registration with the SEC at this time.)

In the meantime, unfortunate investors were submitting their funds into the HugeROI investments for trading and expecting a huge return for their money. At the end of January 2009, HugeROI investors were shocked to find out they could no longer log in to the site.

A message was displayed on the homepage stated that all funds in the investments were lost by their hired trader and the site would be closed for now. It directed the investors to send an email to hugeroi@yahoo.com to obtain proof that this is really what has happened. (One wonders why they would use a Yahoo email address when they own the HugeROI.com domain.)

Sending an enquiry email to this address resulted in a prompt autoresponder message. The contents of this message is quoted below verbatim.

Hello,

If your replying about your account in December we took a major loss and it wiped out all funds including our own. We will have to close the site down for a while until the market gets better. We hate to do this but the traders lost everything in the stock and forex market. Please visit this link below to verify the loss. http://www.photohost.info/public/viewset/259

We visited the photohost site and found what are supposedly the screenshots of the trading account that lost all the funds.

So there you have it, another unregulated online investment site that bit the dust. Their claims of SEC registration and high returns were nothing more than a “pie in the sky” dream or an outright scam. A third reason may be that they did not have years of experience liked they claimed or just plain incompetent to have lost all the funds.

Now that they have announced that a “New HugeROI” is just around the corner, can you trust them with your hard earned money?

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Is HugeROI.com Private Investment Club A Scam?