Judge Sets Final Hearing for USGFX for October 28th and 29th


June 28, 2021, | AtoZ MarketsThe judge in charge in the case of Australian Forex broker USGFX set the final hearing for October 28th and 29th. Here we tell you how this process will be.

Federal Judge Jayne Jagot, who is in charge of the liquidation process of Australian retail foreign exchange broker Union Standard International Group Pty Ltd (USGFX), has determined that the final hearing will take place at the end of October.

Prior to this date, the judge has asked creditors and former clients of the company to make final submissions and application for recovery of funds by September 17th.

Return of Customer Funds

In general, it has been learned that there are multiple claims from customers, and the company’s current funds are not sufficient to cover them in full.

BRI Ferrier, the liquidating agent, has recently said that it has entered into an arbitration process with one of the offshore money processors and is “hopeful” of a successful recovery from this party.

However, specific figures on how much money may be recovered are not yet known.

Likewise, BRI is also exploring a possible recovery in respect of settlement money paid to former clients of Maxi EFX Global AU Pty Ltd (trading as EuropeFX), who is the firm’s former authorized client representative.

Meanwhile, BRI has also indicated that it hired a private investigator to assist it in locating “key persons and parties” who are outside its current jurisdiction, in particular in Myanmar”.

This refers in particular to Soe Hein Minn, the company’s majority shareholder, who remains without leave and in contempt of court in Australia for refusing to cooperate with liquidators.

Process Costs

Liquidation: What It is and How It Works

The Court also issued interim orders approving the use of the trust funds to pay certain costs already incurred, and those to be incurred in connection with the proceeding itself.

Thus far, the Court has determined that the Liquidators are justified in paying their remuneration approved by the Inspection Committee in the amount of $1,423,849.50 plus GST from the Trust Accounts.

What Happened at the June 24 Hearing

On June 24, the Court confirmed the appointment of two “contradictors” acting as representatives of the main classes of creditors, being “commercial” clients and “investor” clients, and their respective legal advisors.

The appointed contradictors are both members of the Inspection Committee and are therefore well informed about the liquidation.

This separation was undertaken because beyond the company’s “regular” business clients, whose funds were held in segregated bank accounts, a very strong number of claims have arisen on offshore products in excess of $100 million, although the company’s license did not permit such activities.

This process about USGFX still has many chapters in its history. So, if you want to follow all the news, click here to know the conclusion.

How Much Money Does USGFX Owe Its Customers?

To date more than AUD$200M in creditor claims have been lodged in the USGFX Liquidation, and there are minimal assets that have been made available to satisfy those claims.

The Liquidators investigations suggest that there are millions of dollars of clients funds that are unaccounted for.

Mr. Investor, so that it does not happen to you, always check the Atoz Markets list to verify the best brokers in the market.

 

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment