06/05/2022 - 13:55

Liquidators: $77m loss for Forex customers

06/05/2022 - 13:55

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Liquidators for Forex Capital Trading released their investigation report, finding that the company’s former customers have incurred a loss of at least $77.5 million.

Liquidators: $77m loss for Forex customers
Liquidators for Forex Capital Trading released their investigation report, finding that the company’s former customers have incurred a loss of at least $77.5 million.

Liquidators for Forex Capital Trading released their investigation report, finding that the company’s former customers have incurred a loss of at least $77.5 million.

The Federal Court ordered Forex Capital Trading to pay a $20 million penalty for engaging in systemic unconscionable conduct in June 2021.

The Melbourne-based financial firm, which was a provider of foreign exchange trading and services, was found to have failed in acting in the best interests of its client.

Forex CT sole director Shlomo Yoshai was ordered to pay a $400,000 penalty and was disqualified from managing corporations for eight years.

Perth-based liquidators from FTI Consulting released their investigation report into Forex CT yesterday.

FTI estimated the losses incurred by Forex CT customers to be at least $77.5 million as they received no money from the federal court orders.

FTI also identified at least 11,174 former customers in Australia, with the most in Victoria at 33 per cent.

The customer breakdown shows 10 per cent of Forex CT Australian customers was based in WA.

According to the report, Forex CT targeted unsophisticated investors with aggressive sales tactics.

FTI senior managing director Daniel Woodhouse, managing director Nathan Stubing and senior managing director Ross Blakeley were appointed as liquidators last year.

“Forex CT targeted unsophisticated investors and its marketing campaigns targeting Australian clients were deliberately undertaken from countries with little, or no regulatory oversight, which allowed Forex to say what it wanted without recourse,” Mr Woodhouse said.

"I strongly urge former Forex customers to register for a potential claim against the company, in order to allow the Liquidators to request those claims be paid by Forex CT’s parent - Invesus Group Ltd in Gibraltar.”

The report found only about 10.5 per cent of Forex customers made any profit using its services.

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