SINGAPORE – Michael Philip Atkins, an American and former director at the Singapore-based firm Aureus Capital, has admitted in court to orchestrating a fraudulent forex trading scheme that defrauded over 1,300 clients of more than $18 million.
Atkins’ legal troubles began in July 2014 when he was first arrested in Singapore. Following his release on bail, he absconded, prompting Interpol to issue a red notice against him. This notice, which requests global law enforcement to locate and provisionally arrest an individual, led to his eventual discovery in the United States in 2017. Three years later, an extradition request was sent to the U.S. authorities, culminating in Atkins’ return to Singapore in March 2023. On April 15, 2024, he pleaded guilty in a Singapore district court to carrying on a business for a fraudulent purpose.
Deputy Public Prosecutor Hon Yi told the court that Atkins, as a majority shareholder and director of Aureus Capital, had full control over the fraudulent scheme. He utilized only a fraction of clients’ funds for actual forex trading. The scheme operated in the manner of a classic Ponzi scheme, where purported returns to clients were paid using funds from new clients. This unsustainable business model eventually led to the company’s collapse.
The financial fallout from the scheme was significant. Although clients initially received around $12.7 million in returns, they ultimately suffered nearly $6 million in losses. DPP Hon Yi urged the court to sentence Atkins to up to three years and eight months in jail, emphasizing that the fraudulent scheme and resulting losses were directly attributable to him.
Aureus Capital, from April 2013 to July 2014, offered leveraged foreign exchange trading services, enticing clients to enter agreements that allowed the firm to trade on their behalf. These agreements stipulated that Aureus Capital would retain 40 to 50 percent of the profits, while clients would bear all trading losses. The company maintained trading accounts with Oanda Asia Pacific, a separate entity providing foreign exchange trading services.
Clients were misled into believing their funds were being actively managed for forex trading on Oanda. However, between April 2, 2013, and July 15, 2014, the designated bank account received more than $18 million from clients. Instead of using these funds for trading, more than $14.7 million was diverted for other purposes, including payments to directors such as Atkins. Only about $1.7 million was actually deposited into Oanda for trading purposes.
Weekly statements sent to clients were deceptive, reporting profits that did not reflect the actual trading results. In reality, Aureus Capital was incurring losses on its Oanda accounts. The ruse began to unravel on June 13, 2014, when clients were informed that Aureus Capital would cease trading operations as it was supposedly acquiring a banking license. Clients who requested withdrawals received no funds. Further deception followed, with the firm emailing clients that it was being rebranded and promising that all funds would be refunded by July 28, 2014. When the company and its directors became uncontactable, clients alerted the police.
Atkins’ eventual arrest was facilitated by the Interpol red notice. After being located in the U.S. in 2017, an extradition request was made, leading to his return to Singapore and re-arrest on March 18, 2023. He is scheduled to be sentenced on April 25, 2024.
Atkins’ fraudulent activities at Aureus Capital underscore the critical importance of vigilance and thorough due diligence by investors. His upcoming sentencing serves as a stark reminder of the severe legal consequences that accompany financial fraud.