24 August, AtoZForex.com, Lagos – About £50 million was left out of the pocket of some investors as a result of an alleged fund fraud, and they have launched a class action in a bid to have their money recovered. In more detail, the £50 million was made in deposits directly by investors into a managed fund operated by DMS Bank & Trust limited (DMS), registered on the cayman islands. Interestingly, the managed fund was operated by CWM.
Supposedly, the fund was intended to be traded on the foreign exchange market, with generous returns in view. In truth, the fund offered unsuspecting investors a guaranteed return of 5%, along with the permission to have funds withdrawn, in as much as a notice of 30 days.
Nonetheless, the law firm Field Fisher Waterhouse LLP investigated the deal and it was discovered that it appears that no funds were actually traded on the market. Instead, investors were allegedly deceived with returns which was paid through intermediary accounts.
The balance that was remaining, were taken over and used for sponsorship within the CWM network of businesses. Including the rights deal, to become Chelsea Football club's 'online forex trading partner' at the start of this year. Further allegations were made by investigators that there were spendings on private jets and other form of lifestyle expenditure in general.
The offices of CWM in the Hebron Tower was raided by the city of London police back in March. Back then, ten men and three women were arrested, who were at the time working for the foreign exchange brokerage arm of CWM. Interestingly, £49 million can't be found in CWM's account at DMS, only about £1.2 million is remaining in the account, which got frozen immediately.
Tim Richardson, a tax advisor who happens to be spearheading the CWM clients class action against DMS Bank, is a victim of the alleged fraud. He has stated that: "The banks that held the CWM limited accounts are liable for the losses incurred as they were not authorized accounts. DMS B&T has taken legal action against the cayman branch managing director for opening and maintaining account against the banks own Boards's wishes."