The news of CWM FX’s situation may have cast a dark shadow on the reputation of the so called big broker in general, adding to an already dented image caused by several bankruptcy cases during by the SNB debacle.
CWM FX woes, has graduated from early claims of a London police raid of its office, to accusations of involvement in a mega ponzi scheme which has come at a cost of its high profile partnership deal with Chelsea FC and now another partner, MotoGP considering its position with the broker and even its business partner, Leverate, have severed ties with the broker. No doubt, bad publicity is contagious!
In a response to mails and enquiries from several sources, we publish excerpts from the statement released by CWMFX attempts to salvage the situation and clear the air, the major points of which are highlighted below;
CWM believes it has been unfairly associated with “operation broadway”, a police clampdown on “boiler rooms” carrying out suspected investment fruads. The operation is being led by City of London police and involved raids earlier this month on 21 premises, 20 of which are not connected in any way with CWM. “Police issued a list of tell-tale characteristics of boiler rooms, including companies which do not display their name in reception areas; unruly staff working unusual hours, using false names and reading from pre-prepared scripts; staff using a false company name or multiple company names; companies making upfront payments and choosing short-term leases
The company went ahead to dispute the above claims and justify its genuineness by stating that;
CWM, in stark contrast, has a ten-year lease on level 21 of the Heron Tower. The deposit paid and fit-out cost represent a substantial long-term commitment by the group. CWM staff work normal office hours from eight o’clock in the morning. The company name and branding is displayed throughout their offices. All companies have the same CWM branding to keep a cooperate look. All staff are paid through PAYE and National Insurance and have normal contracts. Conversations are always recorded and there is no high pressure selling by the company or its staff. CWM is regularly visited by its clients at its offices and continues to welcome its clients with open doors.
The company concluded through the following comments;
CWM believes it has been the victim of a malicious campaign waged against it by persons who harbor a grudge against the company.
In these circumstances CWM is seeking legal advice from corporate lawyers and is working hard to put in place arrangements to enable clients to contact CWM to allow them to administer their accounts. This will enable them to register confidence in the company and to be kept appraised of important developments.
We were also able to confirm that CWM FX does not directly hold an FCA license. It was reliant on its partner’s license: Leverate, therefore the website of CWM FX is still not functioning. Notwithstanding, CWM FX will have to acquire its own license or find another licensed partner if it is to continue its operations as an FX broker.