16 January, AtoZForex.com, Lagos – Following up on previous reports about Fortress Prime’s difficulties in handling its obligations to investors and clients, the firm has again defaulted on promises to commence client payments by the first week of January. Being a prime broker, the Fortress Prime withdrawal issues run deep as many of its customers, which are brokers are being pushed to the edge of winding down because of Fortress’ failures.
Fortress Prime is a prime clearing unit of Fortress Capital Investments, based in Dubai. The firm boasts of some big names on its board, which has thus far tuned out to be insignificant as the firm’s customer continue to suffer. The CEO of Fortress Prime, Mitch Eaglstein, is also listed as Head of Dubai Prime Clearing. They also boast of His Highness Sheikh Mohamed Bin Sultan Bin Hamdan Al Nahyan who’s listed as Chairman of the Board, and Board Member Ali Jumma Al Alawi.
Going on for over 5 months
When the firm’s issues began back in August, they claimed that the delays have been due to issues regarding the sending out of funds, rather than a lack of financial capability. This claim is increasingly looking untrue as the issues have dragged on for over five months now. The latest tactic was to issue clients with checks on the 10th of January. However, clients have been told that they will not be able to cash the checks just yet, with the firm providing a new date resulting in further extension.
Some of the firm’s clients have threatened with legal action, with some having to make a trip to the head office of the firm in a bid to ascertain the situation and get their funds. Unfortunately, a lawsuit may be too expensive and strenuous for most of the firm’s clients, with the cost of such an action out weighing the benefit.
FCA license application
Fortress offers a range of alternative and traditional investment strategies for institutional and private investors around the world. The company was founded in 1998, seeking to provide its investors with superior risk-adjusted returns in a management structure that closely aligns the interests of investors and managers.
The firm, which is an arm of the Fortress group announced their plan to get the UK Banking Regulation License from FCA, irrespective of the ongoing Fortress Prime withdrawal issues. The firm is a leading clearing houses, providing liquidity for vast number of financial products including but not limited to Forex, Commodities, Indices, CFDs and much more.
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