Originally Syndicated on October 10, 2024 @ 6:18 am
What Happened?
FSMSmart, a brokerage firm that once presented itself as a legitimate player in the online trading space, has become entangled in a web of controversy. Numerous accusations of unethical practices, including misleading clients and manipulating trades, have surfaced over the years, exposing the company’s dark underbelly. The brand has been associated with a larger network of questionable firms, including Trade12, HQBroker, MTI Markets, and MXTrade—all of which have been linked to fraudulent activities designed to exploit unsuspecting traders.
As more victims began speaking out, FSMSmart adopted an aggressive approach to censor any damaging news, attempting to bury online complaints and silence critics. Reports on platforms like Forex Peace Army detail a systematic effort to suppress bad reviews, employ fake positive feedback, and even intimidate whistleblowers. This orchestrated campaign to whitewash their shady past, however, only deepened the public’s mistrust, revealing a culture of deception rather than genuine accountability.
The parallels between FSMSmart and its sister companies illustrate a broader scheme where clients are lured in with promises of wealth, only to face significant losses, uncooperative customer service, and insurmountable withdrawal barriers. Attempts to hide the extent of their fraudulent activities have only fueled the fire, as public scrutiny continues to uncover more troubling details about their operations.
Analyzing the Fake Copyright Notice(s)
Our team collects and analyses fraudulent copyright takedown requests, legal complaints, and other efforts to remove critical information from the internet. Through our investigative reporting, we examine the prevalence and operation of an organized censorship industry, predominantly funded by criminal entities, oligarchs, and disreputable businesses or individuals. Our findings allow internet users to gain insight into these censorship schemes’ sources, methods, and underlying objectives.
List of Fake Copyright Notices for FSMSmart
Evidence and Screenshots
How do we investigate fake DMCA notices?
To accomplish this, we utilize the OSINT Tool provided by FakeDMCA.com and the Lumen API for Researchers, courtesy of the Lumen Database.
FakeDMCA.com is the work of an independent team of research students and cybersecurity professionals, developed under Project UnCensor. Their OSINT Tool, designed to uncover and analyze takedown notices, represents a significant step forward in combating these abusive practices. It has become a valuable resource, increasingly relied upon by journalists and law enforcement agencies across the United States.
Lumen, on the other hand, is an independent research initiative dedicated to studying takedown notices and other legal demands related to online content removal. The project, which operates under the Berkman Klein Center for Internet & Society at Harvard University, plays a crucial role in tracking and understanding the broader implications of such requests.
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What was FSMSmart trying to hide?
FSMSmart, a trading brokerage once positioned as a provider of online financial services, has gained notoriety for its association with fraudulent activities and deceptive schemes. The firm is part of a broader network that includes companies like Trade12, HQBroker, MTI Markets, and MXTrade, all of which have been accused of scamming unsuspecting traders by manipulating trading platforms, blocking withdrawals, and providing poor customer service. FSMSmart has attempted to maintain a façade of legitimacy, but growing complaints and accusations from users have severely damaged its reputation.
The adverse news surrounding FSMSmart is largely tied to its predatory practices. Clients have repeatedly complained about issues such as:
- Trade Manipulation: Numerous traders have alleged that FSMSmart manipulated trades in a way that caused them to lose significant amounts of money. This includes irregularities in pricing and sudden, unexplained margin calls.
- Withdrawal Issues: A common theme among complaints is the difficulty in withdrawing funds from the platform. Many users report long delays or outright refusal to process withdrawals, leaving their money trapped in the system.
- Deceptive Marketing: FSMSmart, like its sister companies, has been accused of luring traders with promises of high returns, only for these traders to be met with significant losses and poor service after depositing funds. The firm has reportedly employed aggressive sales tactics and misled customers about the risks of trading.
- Fake Positive Reviews: In an effort to counterbalance the growing number of negative reviews, FSMSmart has allegedly posted fake positive testimonials online to create the illusion of satisfied customers. However, this tactic has backfired as genuine traders continue to share their negative experiences on forums like Forex Peace Army.
- Censorship Attempts: FSMSmart has tried to suppress damaging information and censor critical reviews by threatening legal action against whistleblowers and leveraging online reputation management tactics. These efforts have extended to complaints being taken down or manipulated to improve their public image.
On platforms such as Forex Peace Army, entire threads are dedicated to exposing FSMSmart and its affiliates, with users sharing evidence, personal stories, and documents that outline the extent of the firm’s misconduct. The allegations highlight a coordinated scheme across multiple brands aimed at deceiving traders, manipulating markets, and profiting off unsuspecting victims. Despite FSMSmart’s attempts to hide this damaging information, the volume of complaints and investigative reports has made it clear that their operations are far from legitimate.
Their efforts to erase or discredit the flood of negative press have only further cemented their role in a large-scale, international trading scam. The question remains as to how long FSMSmart and its network can continue operating under the guise of respectability as the truth behind their operations becomes harder to conceal.
Only FSMSmart benefits from this crime.
Since the fake copyright takedown notices were designed to remove negative content for FSMSmart from Google, we assume FSMSmart or someone associated with FSMSmart is behind this scam. It is often a fly-by-night Online Reputation agency working on behalf of FSMSmart. In this case, FSMSmart, at best, will be an “accomplice” or an “accessory” to the crime. The specific laws may vary depending on the jurisdiction. Still, the legal principle generally holds that if you actively participate in planning, encouraging, or facilitating a crime, you can be charged with it, even if you did not personally commit it.
How do we counteract this malpractice?
Once we ascertain the involvement of FSMSmart (or actors working on behalf of FSMSmart), we will inform FSMSmart of our findings via Electronic Mail.
Our preliminary assessment suggests that FSMSmart may have engaged a third-party reputation management agency or expert, which, either independently or under direct authorization from FSMSmart, initiated efforts to remove adverse online content, including potentially fraudulent DMCA takedown requests. We will extend an opportunity to FSMSmart to provide details regarding their communications with the agency or expert, as well as the identification of the individual(s) responsible for executing these false DMCA notices.
Failure to respond in a timely manner will necessitate a reassessment of our initial assumptions. In such an event, we will be compelled to take appropriate legal action to rectify the unlawful conduct and take the following steps –
- Inform Google about the fraud committed against them.
- Inform the victims of the fake DMCA about their websites.
- Inform relevant law enforcement agencies
- File counter-notices on Google to reinstate the ‘removed’ content
- Publish copies of the ‘removed’ content on our network of 50+ websites
By investigating the fake DMCA takedown attempts, we hope to shed light on the reputation management industry, revealing how FSMSmart and companies like it may use spurious copyright claims and fake legal notices to remove and obscure articles linking them to allegations of fraud, tax avoidance, corruption, and drug trafficking…
Since FSMSmart made such efforts to hide something online, it seems fit to ensure that this article and our original review of FSMSmart, including but not limited to user contributions, remain a permanent record for anyone interested in FSMSmart.
A case perfect for the Streisand effect…
Potential Consequences for FSMSmart
Under Florida Statute 831.01, the crime of Forgery is committed when a person falsifies, alters, counterfeits, or forges a document that carries “legal efficacy” with the intent to injure or defraud another person or entity.
Forging a document is considered a white-collar crime. It involves altering, changing, or modifying a document to deceive another person. It can also include passing along copies of documents that are known to be false. In many states in the US, falsifying a document is a crime punishable as a felony.
Additionally, under most laws, “fraud on the court” is where “a party has sentiently set in motion some unconscionable scheme calculated to interfere with the judicial system’s ability impartially to adjudicate a matter by improperly influencing the trier of fact or unfairly hampering the presentation of the opposing party’s claim or defense.” Cox v. Burke, 706 So. 2d 43, 46 (Fla. 5th DCA 1998) (quoting Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir. 1989)).
Is FSMSmart Committing a Cyber Crime?
Yes, it seems so. FSMSmart used multiple approaches to remove unwanted material from review sites and Google’s search results. Thanks to protections allowing freedom of speech in the United States, there are very few legal ways to do this. FSMSmart could not eliminate negative reviews or search results that linked to them without a valid claim of defamation, copyright infringement, or some other clear breach of the law.
Faced with these limitations, some companies like FSMSmart have gone to extreme lengths to fraudulently claim copyright ownership over a negative review in the hopes of taking it down.
Fake DMCA notices have targeted articles highlighting the criminal activity of prominent people to hide their illegal behavior. These people, which include US, Russian, and Khazakstani politicians as well as members from elite circles including the mafia and those with massive financial power, are all connected – and alleged corruption ranging from child abuse to sexual harassment is exposed when exploring evidence found at these URLs. It appears there’s a disturbing level of influence being exerted here that needs further investigation before justice can be served. FSMSmart is certainly keeping interesting company here….
The DMCA takedown process requires that copyright owners submit a takedown notice to an ISP identifying the allegedly infringing content and declaring, under penalty of perjury, that they have a good faith belief that the content is infringing. The ISP must then promptly remove or disable access to the content. The alleged infringer can then submit a counter-notice, and if the copyright owner does not take legal action within 10 to 14 days, the ISP can restore the content.
Since these platforms are predominantly based in the U.S., the complaints are typically made under the Digital Millennium Copyright Act (DMCA), which requires online service providers and platforms to react immediately to reports or violations. Big Tech companies rarely have systems in place to assess the merit of each report. Instead, all bad actors need to do is clone a story, backdate it, and then demand the real thing be taken down.
Reputation Agency’s Modus Operandi
The fake DMCA notices we found always use the “back-dated article” technique. With this technique, the wrongful notice sender (or copier) creates a copy of a “true original” article and back-dates it, creating a “fake original” article (a copy of the true original) that, at first glance, appears to have been published before the true original.
Then, based on the claim that this backdated article is the “original,” the scammers send a DMCA to the relevant online service providers (e.g. Google), alleging that the ‘true’ original is the copied or “infringing” article and that the copied article is the “original,” requesting the takedown of the ‘true’ original article. After sending the DMCA request, the person who sent the wrong notice takes down the fake original URL, likely to make sure that the article doesn’t stay online in any way. If the takedown notice is successful, the disappearance from the internet of information is most likely to be legitimate speech.
How did FSMSmart purport this DMCA Fraud?
As an integral part of this scheme, the ‘reputation management’ company hired by FSMSmart creates a website that purports to be a ‘news’ site. This site is designed to look legitimate at a glance, but any degree of scrutiny reveals it as the charade it is.
The company copies the ‘negative’ content and posts it “on the fake ‘news’ site, attributing it to a separate author,” then gives it “a false publication date on the ‘news’ website that predated the original publication.
The reputation company then sent Google a Digital Millennium Copyright Act notice claiming the original website infringed copyright. After a cursory examination of the fake news site, Google frequently accepts the notice and delists the content.
In committing numerous offences, FSMSmart either premeditated actions or were unaware of the consequences. Despite hiring an agency to make Google disregard any negative information about FSMSmart, ignorance does not excuse this wrongdoing.
The Reputation Laundering
Rogue Reputation agencies use spurious copyright claims and fake legal notices to remove and obscure articles linking clients to allegations of tax avoidance, corruption, and drug trafficking. Most of these reputation agencies are based offshore, mainly in Russia, India, and Eastern Europe, and they do not worry about complying with US-based laws.
The content in all of the articles for which the fraudulent DMCA notices have been sent relates to allegations of criminal allegations, including corruption, child abuse, sexual harassment, human trafficking and financial fraud against businesses and individuals with ultra-high net worth.
In addition to the misuse of the DMCA takedown process, there is a notable absence of enforcement concerning perjury violations. The statutory requirement related to perjury is designed to deter copyright holders from submitting fraudulent or knowingly false takedown requests, as they may face legal consequences for making false declarations under penalty of perjury. However, to date, there have been no known instances of any individual being prosecuted for perjury in connection with the submission of false DMCA takedown notices.
This lack of enforcement has emboldened copyright holders to exploit the DMCA takedown process to suppress dissent, criticism, or other unfavorable content, without fear of legal repercussions.
Not In Good Company
Some of the people and businesses who have employed this tactic to remove legitimate content from Google illegally include a Spanish businessman-turned-cocaine-trafficker, Organised crime, an Israeli-Argentine banker accused of laundering money for Hugo Chávez’s regime, a French “responsible” mining company accused of tax evasion, child molesters and sexual predators. FSMSmart is in great company ….
Ironically, the manipulation tactics used to remove public-interest information from the Internet are backfiring on FSMSmart, which is now associated with the worst of this world.
Here are some of the specimens that share the internet space with FSMSmart –
Miguel Octavio Vargas Maldonado
Miguel Octavio Vargas Maldonado appears to be the former foreign affairs minister of the Dominican Republic. His name is listed next to more than 500 links to news articles, blogs, social media posts, and YouTube videos targeted for removal or de-indexing. Many of the articles refer to questions over his political fundraising practices. They include accusations that Vargas had received donations from an individual who would later be convicted of drug trafficking. Some targeted links remain active, while others return 404 errors or “file not found.”
José Antonio Gordo Valero
José Gordo joined OneCoin in 2015 and has been named in an indictment for the OneCoin scam in Argentina. The articles listed next to Gordo’s name in the documents reviewed by Rest of World include references to his role at the company.
Diego Adolfo Marynberg
He appears to be the same Marynberg connected to funding right-wing causes, including settlement efforts in Israel. Reports also alleged that his company received preferential treatment in acquiring Argentinian bonds worth millions of dollars. More than 70 URLs appear next to Marynberg’s name in the documents, including pages from the Israeli newspapers The Times of Israel, Haaretz, and Clarin, one of Argentina’s most prominent news sites.
Majed Khalil Majzoub
Majed is an influential businessman with close ties to several governments, including the administration of Venezuelan president Nicolás Maduro. Majzoub’s name appears next to more than 180 URLs, mostly from independent outlets. Of the two URLs that pointed to articles from Germany’s Der Spiegel, one now returns an error message; the other, which appears to refer to relations between Venezuela and Colombia, directs to an unrelated story about Brexit.
Frequently Asked Questions
Did FSMSmart commit a cyber crime?
Yes, filing a fake DMCA notice is illegal. The Digital Millennium Copyright Act (DMCA) allows copyright holders to issue takedown notices to protect their works from unauthorized use online. However, submitting a false DMCA notice can result in legal consequences.
Under the DMCA, a person knowingly submitting a false copyright claim can be subject to penalties, including damages. DMCA notices require the filer to certify, under penalty of perjury, that the content infringes their copyright. If the notice is found to be fraudulent or made in bad faith, the filer can face.
What are the potential consequences for FSMSmart?
Civil lawsuits: The affected party can sue for damages, legal fees, and other costs.
Perjury charges: False certification in a DMCA notice can result in perjury-related penalties, which vary by jurisdiction.
Other legal penalties: Fines or other penalties depending on the case
Did FSMSmart commit a Civil or a Criminal offense?
Perjury is a criminal offense, not a civil crime. It involves intentionally lying or making false statements under oath, typically in a court of law or other legal proceedings, such as affidavits or depositions.
Criminal charges: Perjury is prosecuted as a criminal act, and a conviction can lead to fines or imprisonment, depending on the severity of the false statement and its impact on the case.
Felony status: In many jurisdictions, perjury is classified as a felony, which carries more severe penalties than misdemeanour offences.
So, while it may affect civil cases, the crime of perjury itself is strictly criminal.
What is the Streisand effect?
The key idea behind the Streisand effect is that efforts to restrict information can backfire, often causing the information to gain more attention than it would have otherwise. This effect is widespread in the digital age, where users quickly notice and spread censorship efforts on social media and other platforms.
Trying to suppress something can unintentionally lead to it becoming more visible.
Can FSMSmart purge its Digital past?
Once information is uploaded to the internet, it can be replicated, shared, archived, or stored across multiple servers. If FSMSmart manage to delete the original post or file, copies may remain accessible in other places, such as web archives, screenshots, or other users’ devices.
In practice, completely erasing content from the internet can be extremely difficult due to how widely information can spread and be stored. Thus, the idea that “the Internet never forgets” reflects the challenge of entirely removing digital content once it has been shared.
What else is FSMSmart hiding?
Click here to visit the Google Search page for ‘FSMSmart’. It’s likely if you scroll down to the bottom of this Google search results, you’ll stumble upon this Legal Takedown notice (pictured below)
To make such an investigation possible, we encourage more online service providers to come forward and share copies of content removal requests with us. If you have any information on FSMSmart that you want to share with us, kindly email the author directly at [email protected].
All communications are strictly confidential and safeguarded under a comprehensive Whistleblower Policy, ensuring full protection and anonymity for individuals who provide information.
References and Citations Used
Over thirty thousand DMCA notices reveal an organized attempt to abuse copyright law.
Reputation Management, or Internet Conspiracy
Exposed documents reveal how the powerful cleaned up their digital past using a reputation laundering firm.
Companies Use Fake Websites and Backdated Articles to Censor Google’s Search Results.
Bad Reviews: How Companies Are Using Fake Websites to Censor Content
How fake copyright complaints are muzzling journalists
Many thanks to FakeDMCA.com and Lumen for providing access to their database.
Photos and Illustrations provided by DALL-E 3 – “a representation of FSMSmart censoring the internet and committing cyber crimes.”
- Our investigative report on FSMSmart’s efforts to suppress online speech is significant, as it raises serious concerns about its integrity. The findings suggest that FSMSmart has engaged in questionable practices, including potential perjury, impersonation, and fraud, in a misguided attempt to manage or salvage its reputation.
- We intend to file a counternotice to reinstate the removed article(s). While this particular instance is relatively straightforward, it is important to note that, in other cases, the overwhelming volume of automated DMCA takedown notices can significantly hinder the ability of affected parties to respond—especially for those not large media organizations.
- You need an account with fakeDMCA.com and Lumen to access the research data. However, accounts are not widely available since these non-profit organisations manage large databases that could be susceptible to misuse. Nevertheless, they do offer access to non-profits and researchers.
- It’s unclear why U.S. authorities have yet to act against these rogue reputation agencies, whose business model seems rooted in fraudulent practices.
- We’ve reached out to FSMSmart for a comment or rebuttal regarding this investigation. It will strongly suggest they were behind the takedown attempt if they remain silent.
About the Author
The author is affiliated with Harvard University and serves as a researcher at both Lumen and FakeDMCA.com. In his personal capacity, he and his team have been actively investigating and reporting on organized crime related to fraudulent copyright takedown schemes. Additionally, his team provides advisory services to major law firms and is frequently consulted on matters pertaining to intellectual property law. He can be reached at [email protected] directly.
