$77 Million Loss for Forex Clients

Forex Capital Trading liquidators have released their investigative report finding that the company’s former clients have suffered losses of at least $77.5 million.

The Federal Court has ordered Forex Capital Trading to pay a $20 million fine for committing systemic unscrupulous behavior in June 2021.

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

The sole director of Forex CT, Shlomo Yoshai, was sentenced to pay a $400,000 fine and disqualified from managing companies for eight years.

The Perth-based liquidators at FTI Consulting released their Forex CT research report yesterday.

FTI estimated the losses of Forex CT customers to be at least $77.5 million because they did not receive money from the federal court orders.

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

The client overview shows that 10 percent of Forex CT Australian clients were based in WA.

According to the report, Forex CT targeted inexperienced investors with aggressive selling 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 was aimed at inexperienced investors and its marketing campaigns targeting Australian clients were deliberately undertaken from countries with little or no regulatory oversight, allowing Forex to say what it wanted without recourse,” said Mr Woodhouse.

“I strongly urge former Forex clients to register for any potential claim against the company so that the liquidators can request that those claims be paid by the parent company of Forex CT – Invesus Group Ltd in Gibraltar.”

The report found that only about 10.5 percent of Forex clients made a profit using its services.

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