Press release

Investment trading scheme closed down after abusing customers’ funds

Investment trading company wound up by the High Court after it misled customers and adopted pressurised sales tactics to secure investment in bogus schemes.

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Global Fin Services Limited (GFS) was wound up in the public interest at the High Court on 16 July 2018 and the Official Receiver is now the liquidator of the company.

Incorporated in October 2015, GFS offered an online platform for trading forex, derivatives and other investments via the website ‘www.trade12.com’. GFS listed a virtual office in London as their registered address but their customers were predominantly located in South East Asia, Russia, Belarus and Ukraine.

Following complaints from the public, the Insolvency Service investigated the company and found several examples of misconduct.

GFS’s representatives made unsolicited calls to members of the public, often to people who had little or no experience of online trading. Customers were subjected to highly pressurised sales tactics and were misled about the amount of returns made on investments.

Returns on investments quoted by GFS representatives ranged from 10-15% per week or month, with a guarantee to cap losses at 10% of the investment, or returns of between 50-100% on deposits within 30 days.

Investors also complained that GFS made it difficult to withdraw their funds and when money was taken out, their accounts would suffer losses. In a ploy to recover money that was taken out, GFS’ account managers would then urge customers they needed to invest more to enable them to try and recover the losses.

Investigators could not see any evidence that funds paid through the website were invested as the sales representatives said they would and GFS failed to provide any of its accounting records, while also claiming they provided clearing services for its holding company, Exo Capital Markets Limited, a company registered in the Marshall Islands.

Those clients who had made complaints against the company reported losses of more than $1.25 million (USD) but the total amount of investments cannot be confirmed because the company failed to produce any evidence of its accounting records.

And there was evidence that financial regulators across the world, including the FCA, had issued warnings against GFS and Exo Capital Markets Limited, which also traded as “Trade 12”.

Irshard Mohammed, Chief Investigator for the Insolvency Service, said:

GFS had a blatant disregard for their customers. They preyed on people who had little to no experience in making investments of this nature, using unscrupulous tactics to secure funds.

We are pleased that the courts have shut down this company, saving any more people losing their money and we hope this sends a strong message that we will robustly investigate and take action where people’s funds and savings are at risk.

By virtue of the appointment of the Official Receiver all public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 4 Abbey Orchard Street, London SW1P 2HT. Email: PIU.OR@insolvency.gsi.gov.uk.

Notes to Editors

Global Fin Services Limited, company registration number 09836699, was incorporated on 22 October 2015. The company’s registered office is at 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ, that of a virtual office provider.

The petition to wind-up Global Fin Services Limited was presented under s124A of the Insolvency Act 1986 on 22 February 2018. The company was wound up on 16 July 2018 and the Official Receiver has been appointed as liquidator.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Energy & Industrial Strategy (BEIS).

Further information about live company investigations is available here.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available

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Published 2 August 2018