AFX Group Legal Advisers Files a Withdrawal Motion

The legal advisers of AFX group have filed for a withdrawal motion as the firm is unresponsive and has failed to pay outstanding invoices.

25 November 2019 | AtoZMarkets – In July this year, CySEC suspended the CIF license of AFX Capital Markets, which manages, among others, the STO Group brand. Thereafter, AFX's website which includes the STO broker was disabled. In August, however, the Cypriot regulator was followed by FCA suspending the license of the AFX Group. Now it turns out that even AFX lawyers have a problem in dealing with the principal.

No communication and unpaid invoices

On November 22, 2019, White and Williams LLP (WW) filed a request to the New York Bankruptcy Court. The aim was to enter for withdrawal as a legal counsel.

Former AFX legal representatives - Foley & Lardner LLP withdrew as defenders of the accused because of not paying significant sums of money for legal services and the lack of communication of the accused with lawyers. The problems WW faces seem to be similar.

White and Williams explain that "created irreconcilable differences" between the defendants and the lawyers representing them. In particular, despite WWX's repeated requests for payment of overdue invoices for legal services and expenses, the accused did not pay the amounts due for representation in this case.

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The AFX Group also did not respond to WW's requests for information and guidance in the present case. We are talking about the lack of response to telephone conversations, e-mails and other correspondence with the Law Firm.

The Gallant Capital Markets case

In the United States, proceedings are pending against AFX. The complaint was brought by the trustee for the estates of Gallant Capital Markets and Avenica. In October this year, one of AFX group legal advisers said one cannot expect the firm to finance a settlement in this matter.

Throughout 2015 and 2016, Gallant Capital Markets deposited approximately $2.35 million into a Gallant account maintained at AFX. Within the two-week period before the bankruptcy proceeding, the balance in the Gallant account was approximately $2.4 million.

At a similar time, Gallant made requests to AFX regarding trading in its funds, which, however, were disregarded. Nevertheless, AFX withdrew the remaining balance, without authorization and without reason.

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