BlackfortFX receivers indicate a ponzi scheme

BlackfortFX, FMA, Arena Capital Limited, FSPR, Asset Preservation Orders12 June,, Lagos — Following the problems being faced by New Zealand registered FX firm, Arena Capital Limited, the Financial Markets Authority obtained an asset preservation order over the assets of the company and associated persons, in light of concerns that investor funds may be at risk. Also, the condition of the firm prevents it from continued operations as operating under such conditions would be in violation of the laws of New Zealand.

Grant Robert Graham and Neale Jackson, representatives of KordaMentha were the appointed receivers of BlackfortFX. They have provided a brief update report on how they are progressing with the activities of the troubled firm. Luckily, they have succeeded in securing all assets of the broker and are now in the process of identifying all of its investors.

In the latest report from the BlackfortFX receivers, KordaMentha have noted that Arena capital operated more or less as a scam entity. The company claimed to have employed the Dukascopy Bank platform to offer FX services, but the Bank has confirmed that Arena does not have (and never had) any account with it. Enquiries show that clients held the perception that their investment in Arena would be employed for trading activities by a Swiss trading entity. And some clients where given guarantees and some provided with statements indicating they had made profit. Investigations now revel that these statements where forged.

Other discoveries by KordaMentha include:

  • The current assessment showed collectively deposits into Arena’s bank accounts from all sources amounted to $9 million.
  • Pursuant to asset preservation orders obtained by the FMA and the Receivers’ powers, the funds remaining in the Arena bank accounts and assets of Arena have been secured. The bank account holds approx. NZD 730,000. Also, three luxury vehicles held in the name of Arena have been ceased and are also pursuing some other minor potential assets.
  • There are serious doubts concerning the accuracy of the financial records Arena has provided to date, thus they are independently analysing the client positions.

KordaMentha are therefore asking all clients to provide the following information, if they have not already done so:
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  •  copies of any documents you have that record your investment. Ideally you could provide something showing the date you invested and the amount you originally invested (and subsequent investments, if any);
  •  any documentation from the company showing the amounts you are currently owed;
  •  if you cannot provide any documents, we should still be able to confirm your investment if you can let us know when you invested and how much.

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