Australia cracks down on $13 million DanFX Trade investment fraud


The Australian watchdog has uncovered another fake Forex broker in the country. In DanFX Trade investment fraud case, the regulator alleged that Dan FX operated an unregistered investment scheme that has raised $13 million from more than 200 investors.

22 November, AtoZForex - The asset of a Forex broker has been seized for regulating unlicensed financial services in Australia, according to a statement by ASIC.

Australia cracks down on $13 million DanFX Trade investment fraud

The Australian Securities Commission (ASIC) has accused DanFX and its owner Daniel Farook Ali of operating an unregistered managed investment scheme that has raised about $13 million from more than 200 investors. Concerning the matter, the court has appointed receivers for DanFX Trade and associated entities.

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It has placed freeze orders on Ali and his entities' assets, including money and securities. The court has adjourned the case for December 6. Meanwhile, the website of the company has been blocked and its domain DanFX.com is also for sale. But their social networking sites i.e. Facebook and Twitter are still active.

Similarly, ASIC has also permanently banned Ali from providing financial services or engaging in credit activity as a result of fraud charges brought by the Queensland Director of Public Prosecutions in 2012. According to the charges, the court found Ali guilty of using $30,000 worth of eight other investors’ money between June 19, 2008 to February 16, 2010.

Indeed, Ali used the funds for his personal expenses instead of investing them. As a result, he was sentenced to two years in jail. And also, suspended after the first six months in prison in a fraud conviction unrelated to current proceedings.

ASIC planning tougher financial misconduct penalties

Recently, ASIC, which has issued  ICO regulatory guidance for investors,  has planned tougher financial misconduct penalties. The Australian financial regulator seeks to increase penalties for corporate and financial industry wrongdoing.

As a matter of fact, ASIC has an authority to act in a number of ways. They include imposing regulatory and enforcement penalties and remedies in regards to the wrongdoing in the financial markets.

Yet, the regulator has noticed the increasing remarks from the industry participants about the effectiveness of the penalties in the ASIC legislation. Concerning the fact, the penalties may not be effective in regards to the community perceptions of certain forms of misconduct.

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